In a recent development, Coal India Limited (CIL) surrendered the two licenses held by its wholly-owned subsidiary —Coal India Africana Limited—for coal mining in Mozambique. As such, CIL is now left without any foreign coal assets.
The CIL subsidiary was granted the licenses by the Mozambique government in 2009 for mining coal at two blocks, covering 224 square km, in the Tete province of that country. But, it was discovered that out of the 224 square km of the area, 170 square km was without any coal till a depth of 500 meter. However, the rest 54 square km of the area was retained by CIL, for which the mining licence validity period was extended upto 2019.
Eventually, CIL decided to surrender the licenses in view of the unfeasibility of the mining prospects.
According to inputs received, CIL is scouting for acquiring Coking Coal assets in foreign lands to cope up with the domestic deficiency.
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