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International Coal Ventures Ltd (ICVL) proposes to almost double the supply of coal from Mozambique to meet the targeted 10 per cent requirement of Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL).
“The mining from these overseas assets (in Mozambique) are gradually being enhanced. In 2018-19, ICVL exported around 1 million tonne of met coal to SAIL and RINL and that was around 6 per cent of the total requirement of SAIL. However, in 2019-20, ICVL plans to raise production to reach the rate of fulfilling 10 per cent of the requirements of SAIL and RINL,” SAIL told BusinessLine in response to emailed queries.
ICVL was set up in 2009 as a joint venture company of SAIL, RINL, Coal India Ltd, National Mineral Development Corporation (NMDC) and NTPC Ltd. It aims to secure metallurgical and thermal coal assets in overseas territories.
The company was also tasked to own about 500 mt of met coal reserves by FY20. “ICVL has acquired coal mines and assets in Mozambique with met coal reserves of more than 500 mt. Hence the target has been achieved. Moreover, various expansion plans are on the anvil in some of the acquired mines to augment the existing processing capacity,” said SAIL.
Officials in the know said ICVL is planning to double its met coke production capabilities in Mozambique by FY22.
According to SAIL’s annual report, ICVL has reported a ₹114.2-crore loss for FY19. The Mozambique operation of ICVL is a profitable one, said SAIL. In FY19, it had realised revenues of $206.8 million and profit after tax of $27.5 million, it added.
Forex losses
“However, the consolidated statement of profit and loss of ICVL has shown a loss of ₹114.2 crore mainly due to losses accounted for foreign exchange differences and liquidation of some group companies,” it said.
“The consolidation of financial statements of the group companies of ICVL is done following the Indian Accounting Standards (ASs) notified by ICAI and Companies Act, 2013.”
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