Coal India Limited (CIL) has invited firms from both India and overseas to provide consultancy services for optimising tax and regulatory issues for its wholly-owned subsidiary in Mozambique.

“Coal India Limited invites expression for interest for selection of a consultant for advising CIL, for its wholly-owned subsidiary registered in Mozambique with the objectives of optimising tax and regulatory issues,” the tender documents of CIL said.

CIL fully owns a mining company in Mozambique, called Coal India Africana Limitada (CIAL).

In an effort to reduce the widening demand supply gap of coal in the country, CIL is scouting for coal mines overseas.

The world’s largest coal producer is in the process of developing its two mines in Mozambique and had recently invited fresh bids for exploration of its blocks in the African nation, having reserves of over one billion tonnes.

Earlier, the world’s largest coal producer had invited tenders twice for exploratory drilling of its blocks which were cancelled due to shortcomings.

The company that was shortlisted during the second tender had put some additional conditions as a result of which the tender became invalid.

The production from the twin mines is scheduled from 2015, but analysts believe that it may get delayed as CIL is yet to zero in on a company for exploration.

The two coal blocks – A1 and A2 – at Motaize, in Tete Province of Mozambique, are spread over an area of 200 sq km and their exploration may take over two years, as per CIL.

The company had planned production from blocks from 2015.

CIAL had won a five year licence for exploration and development of the blocks in Mozambique in August, 2009.

The demand-supply gap of coal which touched 161.5 million tonnes (MT) last fiscal is estimated to go up to 200 MT in 2016-17.

(This article was published on August 20, 2012)
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