Calcutta, India, 3 April – The coal concession in Mozambique that was recently granted to Coal India Ltd (CIL) is expected to go into production within two to three years, the company’s chairman, Partha S. Bhattacharyya told Indian newspaper the Economic Times in Calcutta.
The coal to be mined in Mozambique will be exported in order to meet demand from customers in Western India and the company plans to acquire a lot in Indonesia in order to export to Eastern India.
“Coal India was granted a concession on an area of 205 square kilometres and preliminary surveys suggest that there are reserves of 1 billion tonnes. We plan to start mining the block within six months but before that happens Coal India will have to establish, but before that happens Coal India will have to establish a partnership with a company designated by the Mozambican Government, which will take a 15 percent stake in the project,” said Bhattacharyya.
A top manager at the company told the Economic Times that mining such a large area would take a long time and added that the company would carry out test drilling, after which commercial mining would begin. (macauhub)