India: Indian state company to mine for coal in Mozambique

6 March 2009

Calcutta, India, 6 March – State Indian company Coal India Ltd (CIL) announced that the Mozambican government has granted it mining rights on two coal blocks with an area of 200 square kilometres, according to a report in daily newspaper The Hindu.

The concession requires CIL to partner a Mozambican company to mine the coal and another Indian company specialising in open face mines.

The paper reported that the Indian Coal Ministry expected that the two blocks had coal reserves of over 1 billion tonnes.

According to the paper 15 percent of production will go to Mozambique and the remainder will be exported to India, which has a lack of energy resources, particularly commercial coal.

As part of the concession the Indian company also commits to take part in a social project by providing articficial limbs to Mozambicans who were seriously injured when a military caché exploded in 2007.

The Indian company gave no details about the location of the coal concession. (macauhub)