Coal India starts further exploration of mines in Mozambique

The first stage of drilling of the mines have been completed in May: Coal India

Taking its plans to develop coal blocks in the African nation forward, Coal India has started further exploration of its twin mines in Mozambique.

"The drilling (of blocks in Mozambique) has started in the first week of June, 2013. The selection of agency for further drilling of 30,000 metre was completed in May, 2013," Coal India informed an inter-ministerial panel in a meeting.

The panel reviews the performance of maharatna firms, including Coal India.

The PSU firm also informed the panel on Tuesday that the first stage of drilling of the mines have been completed in May, according to sources.

Coal India said it has "completed geological mapping for entire coal blocks by engaging consultant".

The contract for initial drilling was awarded in November last year.

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.

CIL had registered its own subsidiary CIAL in mid-2009.

Coal Minister Sriprakash Jaiswal had earlier 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.