Mozambique: BEML Midwest buys coal mine

23 May 2008

New Delhi, India, 23 May – the BEML Midwest company, a joint venture between Bharat Earth Movers, Midwest Granite and Sumber Mitra Jaya of Indonesia, has bought its first mine in Mozambique, the company’s chairman said in New Delhi.

Mukund Reddy said that the company would now ascertain the location of the coal seams in the Mozambican mine in order to determine if the mine will be an open-air mine or underground mine.

However, he warned that there were logistic problems in Mozambique that could delay the start of production, namely the rainy season between December and April, and he added that he hoped by April there would be at least one production block.

Barat Earth Movers owns 45 percent of the company and Midwest Granites and SMJ the remaining 55 percent.

The joint venture is also close to concluding the acquisition of a second coal mine in Indonesia, which, according to Reddy, should start producing before the Mozambican mine, as the seams are closer to the surface.

The coal extracted from these two mines will be exported to India. (macauhub)

Mukund Reddy said that the company would now ascertain the location of the coal seams in the Mozambican mine in order to determine if the mine will be an open-air mine or underground mine.

However, he warned that there were logistic problems in Mozambique that could delay the start of production, namely the rainy season between December and April, and he added that he hoped by April there would be at least one production block.

Barat Earth Movers owns 45 percent of the company and Midwest Granites and SMJ the remaining 55 percent.

The joint venture is also close to concluding the acquisition of a second coal mine in Indonesia, which, according to Reddy, should start producing before the Mozambican mine, as the seams are closer to the surface.

The coal extracted from these two mines will be exported to India. (macauhub)

MACAUHUB FRENCH