Coal India to start exploration in Mozambique in six months
04 April 2009
Coal India Ltd, the state-owned monopoly coal producer, is planning to start exploration of two mining blocks in Mozambique that has been allotted to it joint venture within six months.
CIL and Steel Authority of India Ltd (SAIL) has set up a special purpose vehicle with each holding 28 per cent stake in the SPV for taking up mining exploration in Africa and other regions.
CIL, being the producer, plays the lead role in assessing the acquisition opportunities on behalf of the consortium partners.
"The roadmap for developing the two coal blocks is being prepared. Hopefully, the exploration work should kick off in six months," Partha S Bhattacharyya, chairman of Coal India, said.
The two coal blocks -- A1 and A2 - are spread over an area of 200 square km and their exploration may take over two years.
Mozambique, he said, has asked CIL to submit an application for forging a joint venture with a local company in the African country to develop the blocks.