The Sol Mineração Moçambique company, a subsidiary of India’s Sunflag group, plans to invest US$222 million in a coal mine in the Mutarara district of Mozambique’s Tete province, Mineral Resources Minister Esperança Bias said in Maputo.
At the contract signing ceremony, Bias specified that the concession granted to the Indian group was valid for 25 years and “attests to foreign investors’ confidence in Mozambique’s economic and business potential.”
The director of Sol Mineração Moçambique, Ravibhusan Bhardwej, said feasibility studies revealed the presence of 115.46 million tons of coal, of which only 44.9 million tons can be commercialised, comprising 17.3 million tons of coking coal and 27.6 million tons of steam coal.
The company aims to sell 0.8 million tons of coking coal and 1.2 million tons of steam coal per year, he added.
The group’s main production unit is Sunflag Iron and Steel Co. Ltd. Its steel works in Bhandara annually produces 360,000 tons of special high quality steel. (macauhub/MZ)