Comments
International Coal Ventures Ltd (ICVL) has received expressions of interest from four companies for setting up pit-head chemical and power generation facilities at ICVL’s Benga mine in Mozambique.
Benga is a 5.2-million-tonne per annum mixed-coal mine in Mozambique.
While the 35 per cent coking or metallurgical coal is exported to Indian steel makers, the thermal coal (5500 kcal/kg gross calorific value) is not finding takers in the local market leading to high pit head stock. ICVL, a joint venture of Indian steel makers, acquired the mine from Rio Tinto in August 2014. To create local demand for thermal coal, ICVL sought expression of interests for setting up pit head facilities. The miner’s role will be limited in offering fuel to the user companies on a long term basis.
N C Jha, Managing Director of ICVL, Mozambique, told BusinessLine that two EoIs each were for the chemicals and power generation.
ICVL decided to seek firm offers for the proposed coal-to-chemicals (ammonium nitrate) in a fortnight. Amonium nitrate is used in fertiliser manufacturing. The miner will widen the search for power generators through a separate notice. “For selling thermal coal, we are according priority to the chemical project as there is ready local demand for nitrogenous fertiliser”, he explained. ICVL is looking to sell approximately 0.5 million tonnes of fuel to ammonium nitrate producers.
Trouble zone The search for power generators may not be easy due to inadequacies in power evacuation infrastructure in Mozambique. Talks are on with the local authorities on these issues, Jha indicated.
Non-availability of buyers and a high pit head stock has already forced the miner to restrict thermal coal production.
Meanwhile, ICVL is also witnessing limited demands for its metallurgical coal as Tata Steel (a 35 per cent partner in ICVL) is yet to lift its share of fuel. “We are in talks with Tata Steel for future shipments”, the official said.
The miner has already made several shipments to SAIL and RINL in India.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.