Indian consortium International Coal Ventures Ltd (ICVL) has received expressions of interest from four companies for the installation of power production and chemical plants at the Benga mine in Mozambique, reported Indian newspaper the Hindu.
The paper said that while coking coal is exported to Indian steel companies, thermal coal has not found buyers in the local market and is accumulating outside the mine in Tete province.
In August 2014 ICVL acquired the coal assets of Anglo-Australian group Rio Tinto in Mozambique and in order to generate local demand for thermal coal, announced it wanted to receive expressions of interest from companies for construction of various facilities around the mine.
The consortium will act as fuel supplier to these businesses.
The managing director of ICVL, N C Jha, told the Hindu that two of the four expressions of interest received focus on turning the coal into electricity and the other two on transforming coal into chemical products, such as ammonium nitrate for fertiliser production.
The consortium has sent several shipments of coking coal to Indian state groups Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL), also known as Vizag Steel. (macauhub/MZ)