Indian consortium plans to increase coal mining in Mozambique

28 July 2015

Indian state consortium International Coal Venture Private Ltd (ICVL) wants to increase coal mining in Mozambique from 3.5 million tons/year to 13 million tons/year in the next five years, a consortium official said Monday in Maputo.

The director of ICVL, Nirmal Chandra Jha, cited by the Reuters news agency, said he was aware that the logistical structure of Mozambique did not allow for transport of the amount of coal mentioned but said “we hope that within five years the available infrastructure has improved.”

In 2013 ICVL acquired the coal assets of Anglo-Australian group Rio Tinto in Mozambique for US$50 million, which included the Benga mine in Tete province, after the group registered an impairment of over US$3 billion due to the absence in Mozambique of a logistics network that would allow coal to be transported in large quantities.

The ICVL consortium was founded in 2009 with investments from steel companies Steel Authority of India Ltd and Rashtriya Ispat Nigam Ltd, of mining group National Mineral Development Corporation (NMDC) Ltd, Coal India Ltd and the National Thermal Power Group Corporation (NTPC) Ltd to acquire coal assets abroad. (macauhub/MZ)