Australian company Queensland Bauxite has been granted a new license for coal mining in Mozambique in Cabo Delgado province, the company said in a statement issued Wednesday via the Australian Stock Exchange.
According to the statement, the license, which covers an area of 191 square kilometres, has potential reserves of hundreds of millions of tons of coal and is located just 250 kilometres from the ports of Palma and Pemba.
Mozambique is an ideal position to supply coal, particularly coking coal, to emerging countries such as India, as it has a relatively simple sea route to the ports of Maharashtra and Gujarat on the Western coast of India.
In July of last year Queensland Bauxite signed a contract with unlisted Australian company Regius Coal Mining to buy an initial stake of 35 percent in subsidiary Regius Coal SPV, which owns two coal licenses in the Zambezi coal basin, in Tete province.
The contract also stipulated that Queensland Bauxite would have the option to buy up to 51 percent of Regius Coal’s Mozambican subsidiary. (macauhub)