Coal India to import coal from its two blocks in Mozambique
10 Jan 2011
Coal India Limited (CIL) will import 10 million tons of coal in the next 10 years from its two mining concession blocks in Mozambique, said the company's director Narinder Khurana yesterday.
CIL, the world's largest producer of coal was awarded two coal acreages last month in the Maotize region in Mozambique having an estimated reserve of one billion tonne of coking and thermal coal.
Coal minister Sriprakash Jaiswal is currently in Mozambique along with an Indian delegation to explore the possibility of acquiring five more exploration blocks in Mozambique as well as other opportunities in South Africa and Zimbabwe in order to meet the country's shortfall of 8 million tonnes due to increasing demand.
Kolkata-based CIL plans to invest $400 million in the next five years if the exploration in its two coal blocks in Mozambique yield results, Khurana said.
After winning Block AI and A2 against nine other bidders, CIL has set up a wholly-owned subsidiary Coal India Africana Limitada, which is in the process of forming a joint venture with a local partner identified by the government of Mozambique.
The coal giant intends to employ about 3,000 people and help in building infrastructure such as a railway, Khurana said.
