New Delhi, India — 12 December 2012 – Coal India Africana Limitada “’ a subsidiary of Indian state group Coal India “’ has drilled four test holes in Mozambique and found coal in all of them, a group official said cited by Indian newspaper the Economic Times.
Macauhub News Agency quotes the official as saying that the samples would now be analysed in order to assess the quality of the coal found, and added that exploration and production would be carried out in stages, starting precisely in the areas where coal had been found.
According to the newspaper, the official also said that production in Mozambique was expected to begin in 2016, which would provide the group with more coal with which to honour the contracts it has signed with power production companies in India.
The Coal India group recently awarded an exploration contract in Mozambique to Tribeni Minerals Mozambique Private Limited, where it plans to invest US$80 million to explore the 205sq km of the concession, which is estimated to have reserves of 1 billion tons of coal.
Coal India Africana Limitada was founded in Mozambique in August 2009 after Coal India acquired two coal concessions in Tete province with a five-year exploration and development licence.
Source: Macauhub News Agency. For more information, click here.