CIL invites cos to take up drilling of mines in Mozambique

Taking forward the process to assess reserves of its mines in Mozambique, Coal India (CIL) today invited bids for taking up drilling at the blocks.

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.

"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 said in a notice.

Last month, Coal Minister Sriprakash Jaiswal had said 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 and pooling domestic and international prices.

The efforts by the coal ministry, the minister had said, has resulted in the acquisition of coal mines in Mozambique by CIL.

Coal India Africana Limitada (CIAL) had won a five-year licence 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 was 161.5 million tonnes (MT) in the last fiscal and is estimated to go up to 200 MT in 2016-17.