HomeEnergy MineralsCoal India to spend US$6.4 billion on Mozambique coal blocks

Coal India to spend US$6.4 billion on Mozambique coal blocks

Coal India
headquarters in
Maputo, Mozambique — 29 August 2012  – Coal India Limited has consigned US$6.4 billion to buy foreign assets for the development of its two coal blocks in Mozambique, according to Dow Jones Newswires.

Macauhub News Agency quotes Dow Jones as saying the group “’ which is the world’s largest coal producer “’ has also set aside US$4.6 billion for the five-year period to March 2017 to increase production at its coal mines in India and to create transport infrastructure to ship the coal.

Coal India has been looking for mining assets in South Africa, Australia, and Indonesia since 2010, but has so far signed no contracts due to delays in receiving required government authorisation.

The group’s only foreign assets are two coal blocks in Mozambique that it received following talks between the governments of India and Mozambique in order to promote foreign investment in the Southern African country.

The Coal India group “’ which accounts for over 80% of India’s coal production “’ said recently that demand for coal in the country was expected to increase to 980Mtpa by March 2017, as compared to 772Mt in the current financial year.

Source: Macauhub News agency. For more information, click here.