Development comes at a time when India is facing serious shortage of coal
State-owned Coal India Limited (CIL) has allotted contract for further drilling of its twin mines in Mozambique, taking its foreign mines acquisition plans forward. ‘Recently, Coal India issued work order for further drilling of 30,000 metre of mines in Mozambique,’ a source close to the development said.
However, the source refused to name the company to which the drilling work was allotted. The development comes at a time when the coal producer is facing problems in enhancing coal production and the country is facing shortage of the fossil fuel.
Coal India had in February invited bids for taking up drilling at the blocks, taking forward the process to assess reserves of its mines in Mozambique. ‘In order to establish coal resource base, Coal India African Limitada (CIAL), a subsidiary of Coal India Ltd, plans to take up exploration in...Tete Province, Mozambique through outsourcing. Bids are invited from the interested bidders for the following job,’ Coal India had said in a notice.
Coal Minister Sriprakash Jaiswal had said in January that acquisition of coal mines overseas should be done in an aggressive manner to meet the energy requirements of the nation. In order to tide over the shortages of the fossil fuel, the government is also proposing to import coal. The efforts by the coal ministry, the minister said, have resulted in the acquisition of coal mines in Mozambique by CIL.
Coal India Africana Limitada (CIAL) had won a five-year license for exploration and development of mines in Mozambique in August, 2009. Two coal blocks -A1 and A2- at Motaize, in Tete Province of Mozambique, are spread over 200 sq km and their exploration may take over two years, as per CIL. The demand-supply gap of coal is estimated to go up to 200 million tonnes in 2016-17.
Coal India ltd to soon finalise bankers for overseas mining business plans
Meanwhile it was reported that Coal India will soon finalise merchant bankers who will assist the PSU firm in its plans to invest in prospective coal business opportunities overseas. A source said that “Coal India will finalise the merchant bankers soon.” A Parliamentary Panel had earlier pulled up the Maharatna firm for making no headway in acquisition of coal resources abroad.
Coal India Ltd had earlier invited expression of interest for empanelment of internationally-reputed merchant bankers/investor banker for facilitating the PSU to set up thermal coal mining business overseas. The government had earlier said that CIL has formed a subcommittee to monitor the proposals with regard to foreign investments. CIL has proposed an ad-hoc provision of `35,000 crore for acquisition and development of mines abroad by 2017. Of the proposed amount, `25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia, USA, Columbia, according to an official statement. The remaining `10,000 crore has been allocated for exploration and development of two allotted coal blocks in Mozambique during the 12th Five Year Plan besides creating logistic infrastructure there.
The Standing Committee on Coal and Steel in its report tabled in the Parliament in April had observed that for the development and acquisition of coal resources abroad, `4,000 crore is reported to have been kept as an adhoc provision during 2013-14.
The Committee said that against the adhoc provision of `6,000 crore and `5,000 crore during FY’12 and FY’13, respectively, CIL did not make any headway in acquiring coal mines overseas and that no amount was utilised for the purpose during fiscal 2011-12.
State-owned Coal India Limited (CIL) has allotted contract for further drilling of its twin mines in Mozambique, taking its foreign mines acquisition plans forward. ‘Recently, Coal India issued work order for further drilling of 30,000 metre of mines in Mozambique,’ a source close to the development said.
However, the source refused to name the company to which the drilling work was allotted. The development comes at a time when the coal producer is facing problems in enhancing coal production and the country is facing shortage of the fossil fuel.
Coal India had in February invited bids for taking up drilling at the blocks, taking forward the process to assess reserves of its mines in Mozambique. ‘In order to establish coal resource base, Coal India African Limitada (CIAL), a subsidiary of Coal India Ltd, plans to take up exploration in...Tete Province, Mozambique through outsourcing. Bids are invited from the interested bidders for the following job,’ Coal India had said in a notice.
Coal Minister Sriprakash Jaiswal had said in January that acquisition of coal mines overseas should be done in an aggressive manner to meet the energy requirements of the nation. In order to tide over the shortages of the fossil fuel, the government is also proposing to import coal. The efforts by the coal ministry, the minister said, have resulted in the acquisition of coal mines in Mozambique by CIL.
Coal India Africana Limitada (CIAL) had won a five-year license for exploration and development of mines in Mozambique in August, 2009. Two coal blocks -A1 and A2- at Motaize, in Tete Province of Mozambique, are spread over 200 sq km and their exploration may take over two years, as per CIL. The demand-supply gap of coal is estimated to go up to 200 million tonnes in 2016-17.
Coal India ltd to soon finalise bankers for overseas mining business plans
Meanwhile it was reported that Coal India will soon finalise merchant bankers who will assist the PSU firm in its plans to invest in prospective coal business opportunities overseas. A source said that “Coal India will finalise the merchant bankers soon.” A Parliamentary Panel had earlier pulled up the Maharatna firm for making no headway in acquisition of coal resources abroad.
Coal India Ltd had earlier invited expression of interest for empanelment of internationally-reputed merchant bankers/investor banker for facilitating the PSU to set up thermal coal mining business overseas. The government had earlier said that CIL has formed a subcommittee to monitor the proposals with regard to foreign investments. CIL has proposed an ad-hoc provision of `35,000 crore for acquisition and development of mines abroad by 2017. Of the proposed amount, `25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia, USA, Columbia, according to an official statement. The remaining `10,000 crore has been allocated for exploration and development of two allotted coal blocks in Mozambique during the 12th Five Year Plan besides creating logistic infrastructure there.
The Standing Committee on Coal and Steel in its report tabled in the Parliament in April had observed that for the development and acquisition of coal resources abroad, `4,000 crore is reported to have been kept as an adhoc provision during 2013-14.
The Committee said that against the adhoc provision of `6,000 crore and `5,000 crore during FY’12 and FY’13, respectively, CIL did not make any headway in acquiring coal mines overseas and that no amount was utilised for the purpose during fiscal 2011-12.
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