India Surrendered 2 Mozambique Coal Mining Licences: Minister

Coal India Limited (CIL) has surrendered two licenses held by its subsidiary Coal India Africana Limited in Mozambique and with this has no foreign coal assets. However, CIL is looking for coking coal assets abroad since viable domestic coking coal reserves in the country are facing constraints, both commercial and technical, said Mr. Piyush Goyal, Minister of State for Coal & Mines.

The acquisitions by CIL have become necessary in view of the recent spurt in global coal prices especially for coking coal, said the minister, in a written reply to a question in the Rajya Sabha on Monday.

CIL was allotted two exploratory blocks measuring 224 sq km at Tete province in Mozambique in August 2009 and it had floated a new subsidiary called Coal India Africana Limited in Mozambique but soon discovered that out of the 224 sq km of the total license area, 170 sq km had no ‘coaly’ horizon till a depth of 500 meter and this block was immediately surrendered and later the other one, 54 sq km of area, too was surrendered as it was not feasible to do mining.

CIL in its annual report said, “Based on the results of various exploration activities in the licenses area 3450L and 3451L, the geological report has been prepared… A mineability study has been undertaken based on the findings of the geological report. The study revealed that it is technically not feasible to do mining in the license area of CIAL. Accordingly, the CIL board accorded its approval for surrender of the blocks to the Mozambique government.”

Global mining company Rio Tinto had already conducted an extensive exploration in Mozambique.