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Mozambique to mull Indian request for more coal blocks

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Press Trust of India New Delhi

India today said Mozambique has assured to consider allocation of more coal blocks to Indian companies besides expediting formalities for developing two deposits with estimated reserves of a billion tonnes, already allocated to largest domestic miner Coal India (CIL).

"Minister of Mineral Resources of Mozambique Esperanca Bias today assured India that her government would consider it's request for allocation of more coal blocks to CIL," a Coal Ministry official told PTI over phone from Mozambique.

Coal Minister Sriprakash Jaiswal, who is leading a high-level delegation to South Africa met her today at Mozambique.

The official also denied media reports quoting Deputy Minerals Minister of Mozambique, Abdul Razak that the South African nation has turned down a request by Indian government for five coal concessions saying the Asian giant should first develop its two existing blocks in the country.

 

"Mineral Resources Minister Bias not only assured more blocks but sought greater cooperation in the area of coal mining between both the nations," the official said.

CIL was awarded rights to two blocks containing estimated one billion tonnes of coking and thermal coal spread across about 200 square km in Mozambique, home to some of the world's richest deposits.

"Mozambique government has assured all assistance to complete necessary formalities and infrastructural support for making both the blocks operational as early as possible," the official said.

Both the countries have agreed for a meeting of working group on coal in April, 2011 to discuss scope and modalities of bilateral cooperation further, the official added.

Meanwhile, India has offered setting up of two institutes for planning and manpower training in the area of mining with an investment of Rs 88 crore, an official statement from Coal Ministry here said.

Modalities for setting of these institutes including land allocation will be finalised shortly.

Jaiswal last week had said that India is interested in acquiring coal properties in South Africa and both these countries can go for joint ventures in this area.

Jaiswal had said that the cooperation with the South African government was aimed at bridging the growing domestic demand-supply gap, which at present is about 83 million tonnes.

The Indian delegation, led by Jaiswal includes Coal Secretary C Balakrishnan and Coal India Chairman Partha Bhattacharya.

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First Published: Jan 10 2011 | 8:28 PM IST

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