Coal India allots contract for drilling of Mozambique mines

State-owned Coal India 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 alloted.
     

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 (CIL) 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 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 is estimated to go up to 200 MT in 2016-17.