Maputo, Mozambique — 14 June 2013 – Coal India Mozambique, a subsidiary of Indian state company Coal India Limited, plans to launch the second phase of coal prospecting in Mozambique in which it plans to invest US$60 million, following the good results of its first phase exploration programme.
“We have hired Tribeni Earth Movers, the same company that carried out the first stage of prospecting, to start the second phase, as preliminary results of the first phase are good enough to launch the second phase,” a group senior official told Indian newspaper “The Economic Times.”
Macauhub News Agency reports that the samples collected in the first phase are due to arrive at the group’s laboratories in India soon and their analysis will identify the quality of the coal in the group’s two blocks in Mozambique.
The official added that a third phase would involve drilling of up to 35,000m and that the whole process of collecting samples for analysis would be concluded within 18 months. Commercial exploration would begin within two years.
Coal India Africana Limitada “’ a 100 percent-owned subsidiary of the CIL group, which controls Coal India Mozambique “’ is expected to sell a 15% stake to an investor identified by the Mozambican government.
A few days ago, the Wall Street Journal reported that the Indian group was considering handing back the two coal blocks in Mozambique due to a lack of logistics facilities to carry the coal away.
Contacted by the newspaper, the source said that Coal India would announce its final decision on these two blocks in 2014, after carrying out as detailed an analysis as possible of the quantity and quality of coal in the blocks.
Source: Macauhub News Agency. For more information, click here.