Home BusinessCIL team to visit Mozambique soon
The efforts of Coal India Limited (CIL), the world"s single largest coal producer to explore coal blocks in Mozambique seem to have gathered steam.
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A high-level team comprising the officials of the Coal ministry and CIL is set to visit Mozambique soon to expedite the process of exploration of the two coal blocks awarded to the coal PSU in that country.
“A high-level team will visit Mozambique soon to expedite the process of exploration of the two coal blocks awarded to us. This team will step up efforts to forge a joint venture with a state run mining firm in that country for carrying out exploration work”, a highly placed CIL official told Business Standard.
It may be noted that CIL was awarded two exploratory coal blocks in Mozambique in March this year. The coal blocks named A1 and A2, having an estimated reserve of one billion tonnes, are located in Tete province of that country.
While the exploration of these two coal blocks spread over 224 sq km was set to commence within a few months, the mining activities were expected to begin after three years.
The coal major has formed a fully owned subsidiary in Mozambique. This CIL subsidiary will forge a joint venture (JV) with a state run mining firm in Mozambique.
CIL is likely to get the prospective mining license for the two coal blocks soon as all the official formalities related to the grant of the license have been completed.
Prior to carrying out mining operations in Mozambique, the navratna coal company was to distribute artificial limbs in that war ravaged nation.
CIL has also announced the setting up of a premier mining institute in Mozambique on the lines of the Indian School of Mines, Dhanbad.
Of late, CIL has intensified its efforts to acquire stakes in overseas coal assets. Besides Mozambique, CIL was eyeing coal properties in countries like Australia, Indonesia, USA and South Africa.
The efforts of CIL are aimed at bridging the increasing gap between production and demand of coal in the domestic market.
The demand for the dry fuel in the country is estimated at 730 million tonnes (mnt) by 2011-12. However, domestic coal production from state run entities like CIL and Singareni Collieries and from the captive coal blocks is pegged at 520 mnt by then, thus creating a deficit of over 200 mnt.