Coal India applies for surrender of Mozambique mines

CIL says it is technically not feasible to do mining in the licence areas of Coal India Africana


The Coal India Africana Limitada has completely surrendered the prospecting licences covering the total 224 sq km based on the geological report. Photo: Mint
The Coal India Africana Limitada has completely surrendered the prospecting licences covering the total 224 sq km based on the geological report. Photo: Mint

Kolkata: Coal India Ltd (CIL) on Monday said it has submitted an application to the National Institute of Mines (Instituto Nacional de Minas) of Government of Mozambique to surrender prospecting licences awarded to its wholly-owned subsidiary Coal India Africana Limitada (CIAL), Mozambique since mining would be “technically not feasible” in the licence areas.

In its annual report, Coal India said a mineability study has been undertaken based on the findings of the geological report, which revealed that it is technically not feasible to do mining in the licence areas of Coal India Africana. The response of the Mozambique government is awaited, the report said.

The licences, covering a total area of 224 sq. km, were awarded to the company’s African subsidiary with validity from August 2009 to August 2014 and subsequently extended up to August 2019. Out of the total mining area, as per the report, there was no occurrence of coal horizon till a depth of 500 m in the area of 170 sq. km. This has been surrendered to the Mozambique government. The remaining 54 sq. km area has been retained for which the Government of Mozambique has issued new licences till August 2019, the report added.

The company, however, has completely surrendered the prospecting licences covering the total 224 sq. km based on the geological report.

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