Indian group gives up coal prospecting in Mozambique

30 August 2016

Coal India Ltd (CIL) has returned the licenses for coal exploration in Mozambique granted to its subsidiary Coal India Africana Limitada (CIAL), according to its Annual Report and Accounts, cited by the Business Standard newspaper.

The return of the licenses to the National Institute of Mines, of the Ministry for Mineral Resources and Energy was, according to the report, due to mining in the areas covered by the licenses “being technically infeasible”.

“A feasibility study for mining exploration concluded that it was not possible in the areas covered by the concessions obtained by CIAL, thus the board of CIL decided to return the licenses to the Mozambican government,” said the document.

The subsidiary of the Indian group had been granted two licenses for coal exploration in a joint area of 224 square kilometres, which were valid between August 2009 and August 2014.

The geological report conducted byCIAL concluded that at least 170 square kilometres of the two concessions had no coal deposits to a depth of 500 metres. (macauhub/MZ)