Indian state companies seek coal assets in Mozambique

25 June 2014

A mission from International Coal Ventures Private Limited (ICVL) of India is in Mozambique to assess some of the coal assets it is considering buying, the Indian press reported.

ICVL is a “specific purpose vehicle” or a structured financial operation with proposed capital of US$900 million and debt of US$1.8 billion raised from investment funds and venture capital firms, and is partnership of several Indian state companies.

The partnership as initially made up of the Steel Authority of India Ltd (SAIL), the country’s largest iron and steel producer, Coal of India Ltd (CIL), RINL (Rashtriya Ispat Nigam Ltd, also known as Vizag Steel), National Mineral Development Corporation (NMDC), NTPC, a power production company.

NTPC later decided to leave the partnership as it had plans to buy thermal coal to fire its power plants whilst the other companies were interested in access to coking coal for steel production.

The Indian newspaper said that after Mozambique, the officials from the ICVL mission may travel to South Africa and other countries in Southern Africa.

ICVL previously made a bid to buy Australia’s Riversdale Mining, which was actually acquired in 2011 by Anglo-Australian group Rio Tinto for US$4 billion. (macauhub/MZ)