Mozambique: Coal India awarded coal mining concession

17 March 2009

Maputo, Mozambique, 17 Mar – Indian company Coal India, Ltd, has won the concession for geological prospection work and mineral coal exploration in two blocks of the Moatize coal basin in Tete province, said the Maputo newspaper, Notícias.

The concession for these blocks is the result of a tender launched by the Government at the end of last year concerning three blocks. The third area was won by a Mozambican company.

According to the timeframe for the process, in the next phase the companies selected should present their investment plans, the terms of which will be discussed in the context of the regularization of geological coal prospection and research activity in Mozambique.

The two blocks granted to Coal India occupy an estimated area of 200 square kilometres, where reserves of between 500,000 and one billion tonnes of mineral coal are believed to exist.

According to Coal India’s projections, 85 percent of its production could be exported to India, which will reduce the country’s dependence on coal imports.

Also in Tete province, construction of a new coal-powered thermal power station will begin, with a production capacity of 500 megawatts, part of a project led by Australian company, Riversdale Mining, estimated at US$2 billion. Construction should be finished within the maximum period of three years.

The Government granted Riversdale Mining a licence for mineral coal mining in 290,080 hectares in Tete province. Another company involved in mineral coal mining in this province is the Brazilian company, Rio Doce Moçambique (CVRD), with whom the government signed an agreement for a concession valid for 25 years. (macauhub)