Coal India Limited (CIL), the world's single largest coal producer, expects its two coal blocks in Mozambique to start production in first half of 2014. The CIL was awarded the blocks in March 2009.
The navratna company is yet to complete the exploration of the coal blocks and is eyeing an output of 15 million tonnes a year from its Mozambique unit, once it starts operation, N C Jha, acting chairman of CIL told Business Standard.
"We have been allotted two exploratory coal blocks, spread over 224 sq km in Mozambique, but we have not explored it fully. So it is not possible to comment how much coal we will be getting, but we can safely assume production upto 15 million tonne a year," said the CIL chief.
He, however, did not specify how much will be shipped to India from the African unit.
"The exploration work is currently under process. We do not know the grade (quality) of the coal yet. Again, we will have to see the logistics availability to transport coal to the nearest port. As all these things have to be assessed, I cannot say how much we will import, “said Jha.
The company had earlier said that mining activity in Mozambique would start in mid-2012. The unit has been formed with a partnership between CIL's fully owned subsidiary and a state-run mining firm in Mozambique, in Tete province.
Of late, CIL has been trying to acquire overseas coal assets. Besides Mozambique, the company was looking for properties in Indonesia, Australia, South Africa and the US.
Recently, an Indonesian minister said, CIL would invest $3 billion in the island nation to acquire a coal block, to fund a steel plant and a sea port, according to news agency reports. But Jha denied any such engagement by CIL.
"It is true that we have been scouting for coal assets in Indonesia. But I have not talked to any Indonesian minister for coal blocks. I do not even know from where did the $3 billion investment figure come from," he said.
The race for acquisition of overseas coal assets was gaining momentum in view of the burgeoning coal demand in India. The domestic coal demand is currently estimated at 730 million tonnes a year, while domestic firms produce about 520 million tonne per year.
