India wants to buy more coal from Mozambique and South Africa

15 May 2007

Johannesburg, South Africa, 15 May – India wants to increase its purchases of coal from Mozambique and South Africa in order to feed the many coal-fired power stations it is building, African consultancy Osho Energy said in Johannesburg Monday.

Tushar Agrawal, said that Osho Energy had been mandated by Indian power companies to buy a total of 20 million tons of coal per year from the two African countries, from 2009.

“we are looking for the entire quantity (needed by the Indian countries) in South Africa and Mozambique,” said Agrawal.

The consultancy added that it would not compete with European buyers for the best grades of coal, but would focus on buying lower quality coal sold buy smaller producers, with whom it is already in contact.

India is currently installing seven new power plants with a total capacity of 4,000 megawatts, each of which needs 12 million tons of coal per year.

Most of South Africa’s and Mozambique’s coal exports currently pass through the ports of Richard’s Bay, the largest terminal of its kind in the world, and Maputo, Mozambique’s capital.

This Mozambican port last year expedited 1.6 million tons pf coal and magnetite, a type of iron ore. (macauhub)

MACAUHUB FRENCH