Coal India Africana Limitada, a subsidiary of Indian state group Coal India, drilled four test holes in Mozambique and found coal in all of them, a group official said cited by Indian newspaper the Economic Times.
The official said that the samples would now be analysed in order to assess the quality of the coal found and added that exploration and production would be carried out in stages, starting precisely in the areas where coal had been found.
According to the newspaper the official also said that production in Mozambique was expected to begin in 2016, which would provide the group with more coal with which to honour the contracts it has signed with power production companies in India.
The Coal India group recently awarded an exploration contract in Mozambique to Tribeni Minerals Mozambique Private Limited, where it plans to invest US$80 million to explore the 205 square kilometres of the concession, where it is estimated there are reserves of 1 billion tons of coal.
Coal India Africana Limitada was founded in Mozambique after the in August 2009 Coal India acquired two coal concessions in Tete province with a five-year exploration and development license. (macauhub)