Maputo, Mozambique, 7 Feb – The Mozambican government and Indian group Jindal Steel & Power Ltd (JSPL) Monday in Maputo are due to sign a 25-year concession contract for coal mining in Tete province, according to the Mozambican Mining Resources Ministry.
Citing a source from the ministry, Mozambican daily newspaper, Notícias, said that signing the contract with JSPL Mozambique Minerals, Limitada, the group’s Mozambican subsidiary, opened the way for the Indian company to start investing and estimated US$180 million.
JSPL Mozambique Minerals plans to launch its activities in 2012 and expects to produce 10 million tons of coal per year, mined at the concession area of 245 square kilometres located between the districts of Changara and Cahora Bassa, in Tete province.
JSPL started operating in Mozambique in 2008 with coal prospecting and surveying activities. It discovered reserves of an estimated 1.652 billion tons. (macauhub)