CIL to acquire coal mines in Mozambique, starts due diligence

Kolkata, Jun 08 (UNI) In a bid to acquire coal mines in Mozambique, South Africa, public sector major Coal India Limited (CIL) has started due diligence in that country.

CIL is at the final stages of negotiation with the respective government through Indian government to acquire the coal mines in that country, CIL Director (Technical) Dr N C Jha told UNI today.

''We have identified a number of mines in Mozambique and their government has shown keen interest. A high-level delegation, comprising of CIL official and representatives of the Coal Ministry, will visit Mozambique in July or August to strike the final deal,'' he said.

The Coal India had planned venturing in Mozambique when it formed Coal Videsh, a wholly owned subsidiary of CIL, in 2005.

''Apart from Mozambique, CIL is also looking at Indonesia and Australia for good mines,'' he said.

Coal Videsh, the CIL's arm for foreign ventures, is also interested to acquire mines in various countries like Indonesia, Bangladesh and Zimbabwe.

In March this year, a high-level delegation had visited Canada to explore opportunities to acquire steelgrade coking coal mines.

Australia is another country that CIL is bullish on to acquire mines due to lower freight costs, easy transportation and proximity to India, he said.

CIL's coal production target in 11th Plan Period is 521 Million Tonnes compared to 360 MT in 2006-07.

UNI