Coal India Ltd to keep to coal block prospecting deadline in Mozambique

13 July 2011

Calcutta, India, 13 July – State Indian group Coal India Ltd (CIL) plans to keep to the deadline set by the Mozambican government to carry out prospecting work on two coal blocks in the Moatize region of Tete province, Indian newspaper Business Standard reported.

Phalguni Guha, the director-general of Coal Videsh, the group company charged with finding coal assets overseas, said that the group would launch a new tender within a month, after the previous tender was cancelled, and added that he hoped the entire process would be concluded this year.

The two blocks were awarded to CIL in 2009 and the Mozambican government set a limit of five years, until 2014, for both the Indian group and remaining concession holders to start the prospecting process.

However, two years after the bocks were awarded the group has yet to do anything with them although Guha told the Business Standard that the group had enough time to start prospecting within the time limit given by the Mozambican government.

However, the newspaper cited other sources as saying that it would be very difficult to keep to the deadline as prospecting activities could take years. (macauhub)