In what could be good news for Indian coal companies, Mozambique - which consists of some of the country’s major coalfields - plans to put on auction its reserves this year and has insisted participation from all the major Indian companies.
Mozambique’s Minister for Mineral Resources Esperanca Bias, who is currently in the country to participate in Petrotech 2014, told The Pioneer that her Government would hold a full fledged auction of its coal fields, the fourth of its kind, later this year.
She added that though the exact number of blocks which would be put up for auction is yet to be decided as the plan is at an early stage, the Mozambique Government would soon begin reviewing the performance of the companies which are already holding coal blocks in her country.
If it is found that no concrete mining has been undertaken in these blocks by the companies, then their leases would be revoked and these blocks will also be put up for auction, Bias said.
Coal India ltd (CIl) and Jindal Steel are some of the major Indian companies which are currently holding blocks in that country. When asked about the status of the blocks held by CIl, Bias said that as per her information these are being developed.
Meanwhile CIl on its part, according to official sources, is in the process of completing the exploration work of its two blocks in Mozambique. Company sources said that this is an extensive exercise and would take some time to complete.
CIl had been allotted the two mines in Mozambique’s Tete province in 2009 after a bilateral deal was signed between New Delhi and Maputo. The deal’s aim was to import the coal from the two blocks to India to supplant the widening gap in demand and supply of the dry fuel in the domestic market.