Coal India can seek overseas acquisitions of coal mines, panel says

Coal India can seek overseas acquisitions of coal mines, panel says

CIL was awarded an exploration license for coal blocks in Mozambique in 2009. (file)

New Delhi:

As state-owned CIL (Coal India Limited) is not currently buying any overseas coal blocks, a parliamentary panel said today that PSUs could still seek overseas acquisitions of mines, especially low-ash coking coal, after conducting detailed studies and analysis of the blocks.

The committee argues that this will not only reduce imports of fossil fuels, but also open up new avenues for overseas mining.

“Considering the existing coal resources in the country, the committee would like the Coal Ministry/CIL to explore the acquisition of foreign coal blocks. They would like to know any progress in this regard,” the Standing Committee on Coal, Mines and Steel said in its report to Parliament.

CIL, through its wholly-owned international subsidiary, Coal India Africana Limitada, acquired exploration licenses for coal blocks in Mozambique in 2009.

However, following detailed exploration, geological reports and recoverability reports, it was found that the coal in the allocated blocks was of poor quality and mining was not commercially viable.

“It is not cost-effective to acquire coal blocks in Mozambique and the exploration license was handed back to the government of the Republic of Mozambique in 2016,” it said.

CIL accounts for more than 80% of domestic coal production.

(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)

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