Mozambique invites rail line bids; Coal India to benefit

CIL had won a five-year licence for exploration, development of mines in Mozambique in August 2009

Four companies have evinced interest in setting up a railway network in Mozambique, a development that may help Coal India in transporting the output from its twin mines in the African nation.

"The Mozambique government has invited expressions of interest for setting up of a rail network for coal evacuation in the African nation and four companies have shown interest," a source privy to the development said. He refused to name the companies that expressed interest.

Coal India (CIL), which won a five-year licence for exploration and development of the mines in Mozambique in August 2009, had earlier considered setting up a 450-km rail network to transport the coal to a port. There was also a proposal for CIL to rope in a partner to build the rail lines.

The two coal blocks - A1 and A2 - at Moatize in Tete province are spread over 200 sq km and are being developed by Coal India Africana Limitada, a CIL subsidiary.

The contract for initial drilling was awarded in November last year. CIL informed an inter-ministerial panel the first stage of drilling had been in completed May, sources said.

"Further drilling started in the first week of June 2013. The selection of an agency for drilling of 30,000 metres was completed in May 2013," Coal India recently informed an the inter-ministerial panel, which reviews the performance of maharatna firms.