State-owned Coal India (CIL) is likely to start exploration of two mining blocks that it has been allotted in Mozambique within six months.
"The roadmap for developing the two coal blocks is being prepared. Hopefully, the exploration work should kick off in six months," Coal India Chairman Partha S Bhattacharyya told PTI today.
Bhattacharyya, however, refused to divulge details on the area to be drilled for the exploration and the amount to be incurred on it.
Highly placed sources in the Coal Ministry, however, said the Navratna PSU would embark on drilling operations in 10 lakh square meter, which would need an investment of about $10 million.
The two virgin mining blocks for which Coal India got mineral concessions from the Mozambique government last month, possess an estimated coal reserve of 1 billion tonnes.
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The two coal blocks -- A1 and A2 -- are spread over an area of 200 square kilometre and their exploration may take over two years.
The official said Mozambique has asked CIL to submit an application for forging a joint venture partnership with a local company in the African country to develop the blocks.
The African company would have a 15 per cent stake in the JV and the licence for exploration of the blocks would be issued to the joint entity.
Coal India plans to export 85 per cent of the output from the Mozambique mines to India, which would help reduce the country's dependence on coal import.
"As per the deal, we would have to leave 15 per cent of the mined coal for the host country, while the rest we will export," Bhattacharyya had said, adding the production from the Mozambique mines could start in a span of over five years.
