Indian group Coal India has awarded exploration of its coal blocks in Mozambique to Tribeni Minerals Mozambique and announced investments of US$80 million in the project, a group senior official told Indian newspaper the Economic Times.
The source said that the group had asked for proposals from Mozambican companies after it had been unable to move ahead with tenders launched in 2010 and 2011 for bureaucratic reasons.
Coal India cancelled the first tender launched in 2010 due to problems related to banking guarantees provided by applicants and the second tender was cancelled after the company that put forward the lowest price then imposed new conditions that were not included in the tender document.
The latest tender was organised by Coal India Africana Limitada, Coal India’s subsidiary with two coal blocks in Mozambique.
The two blocks cover an area of 205 square kilometres and are estimated to contain 1 billion tons of coal reserves. (macauhub)