Mozambique: Camec announces important coal discovery in Tete province

28 April 2008

London, United Kingdom, 28 April – Central African Mining and Exploration (Camec) said Friday in London that it had made an important coal discovery in Mozambique.

In a statement, the company, which is listed on the London Stock Exchange, said that the discovery, carried out as part of the systematic prospecting of the 21 concession areas in Tete province, could contain 868 million tonnes of processable coal.

The company said that the amount of coal was likely to increase substantially as prospecting moved ahead.

Meanwhile, officials from Indian state coal monopoly Coal India are due to travel to Mozambique in May in order to examine a coke mine that the company plans to buy together with the Steel Authority of India and other state companies.

This acquisition aims to incraese the domestyic supply of coal, as demand is higher than supply.

Coal India, which controls most coal supplies in the country, the Steel Authority, Rashtriya Ispat Nigam and NMDC have set up a joint venture to acquire foreign coal assets, and have an initial capital of US$2.3 billion to do so. (macauhub)