Maputo, Mozambique, 03 Feb – The Central African Mining & Exploration Company, the largest holder of coal mining licenses in Mozambique, has said it plans to invest US$25 million on developing its activities in the country, following positive prospecting results.
Initial prospecting in the Zambezi basin, in Tete province, showed the area had “significant coal deposits,” including three seams with a calculated potential of 200 million tons, the UK company said in a statement.
The find is located in concession area 842, which has an area of around 17,000 hectares.
According to the company, geological studies are still being carried out in two further concession areas located along the railway line between Tete and Beira provinces, next to the Malawi border.
In this area three seams have already been located, the potential of which will be assessed in the first quarter of 2006, via drilling.
Central African Mining has mandated multinational company Snowden as its technical consultant to carry out additional prospecting work.
According to the chairman of Central African Mining, Phil Edmonds, the discoveries make it possible to “quantify significant mineral resources,” and the aim is now to “move ahead with them as quickly as possible, as well as identifying additional areas in Africa in which to expand the portfolio,” particularly in the Democratic Republic of Congo.
The funds required to invest in Mozambique are the result of a stock flotation on the London stock exchange. (macauhub)