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SAIL’s JV inks an agreement to acquire coal resource in Mozambique

30 Jul 2014 Evaluate

International Coal Ventures (ICVL), a joint venture Company (JVC) of Steel Authority of India (SAIL), Coal India, Rashtriya Ispat Nigam, NMDC and NTPC has signed an agreement for acquisition of 2.6 billion tonnes coal resource in Mozambique with Rio Tinto, UK. This coal resource will become a long term captive source of a critical raw material in steel making in geographical proximity to India. The coal mine and assets are located strategically in the prime coking coal bearing region of the Moatize Coal Basin which is stated to be the second largest coal basin in the world after the Bowen Basin in Australia.

The operating coal mine comes with a state of the art wash plant and surface infrastructure with a potential to expand raw coal production from the current 5 Million tonnes per annum (Mtpa) to 12 Mtpa. There is significant potential for tapping CBM from the acquired coal resources.

SAIL is India's largest steel producing company. The company is among the five Maharatnas of the country's Central Public Sector Enterprises. The company has five integrated steel plants, three special plants, and one subsidiary in different parts of the country.

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