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Coal India expects to start exploration in two blocks in Mozambique in next three months. As an industry norm, exploration activities take close to three years to be completed.
Talking to newspersons on the sidelines of a conference at the city based Merchants' Chamber of Commerce (MCC), CIL Chairman, Mr N.C. Jha, said that four to five companies, most of which are Indian, have submitted bids to carry out the exploration activities on CIL's behalf.
“We are expecting to complete the selection of parties and commence exploration within next three months,” he said.
The company was awarded two exploratory coal mining blocks - A1 and A2 - by the Mozambique government as part of its bilateral relationship with the government of India.
Of the two blocks A1 is most promising and has both thermal and coking coal assets. Early estimates suggest that the block has over one billion tonne coal reserves.
Depending on the suitability of the block, CIL will develop the assets in joint venture with either the Mozambique government or its nominee. The local partner will hold a minority stake of 10-15 per cent.
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