Coal India to start mining in Mozambique

KOLKATA: Coal India will soon start mining in Mozambique, which, along with the projects of the Adani group in Australia and Sanjiv Goanka in South Africa, will increase supplies of the dry fuel in India where a shortage at present is crippling power production.

All of these projects are set to start supplying coal to India within the next three-four years. If the plans of the government and private domestic producers are carried out as planned, supplies of coal from local mines and produced by Indian companies abroad and shipped to India are likely to be more than what the country requires.

“If all clearances are in place, five years is more than enough time to start production at a coal mine. Going by that calculation, if private coal producers can adhere to their production schedules, the imported coal could turn out to be in excess of requirement,” an analyst with a ratings firm said.

“The final phase of exploration for Coal India’s A1 and A2 mining blocks at Tete Province in Mozambique is complete. Coal sampling is in progress. Geological report and detailed project report will be prepared. We hope to start mining within six months to a year,” a senior Coal India official told ET.

CIL floated a venture, Coal India Africana, in Mozambique after it acquired coal blocks in the African nation’s north western Tete province. It won a five-year licence for exploration and development of two blocks in August 2009.