Coal India invites bids for third phase of drilling mines in Mozambique

Taking forward its plans to develop mines in Mozambique, state-owned Coal India Ltd (CIL) has invited bids for the third phase of drilling in the African nation.

CIL said on its website that the company invites expression of interest (EoI) "for 3rd phase drilling inclusive of making access & preparation of site, water carting for drilling etc in Licenses area nos 3450 L & 3451L, Moatize Coalfield, Tete Province, Mozambique".

"In order to establish coal resource base, Coal India Africana Limitada (CIAL), a subsidiary of Coal India Ltd, plans to continue exploration...through outsourcing. Bids are invited from the interested bidders for the...job," it said.

CIL had earlier informed an inter-ministerial panel that the drilling of blocks in Mozambique had started in June, 2013. The selection of agency for the further drilling of 30,000 metre was completed in May, 2013.

The panel reviews the performance of maharatna firms, including Coal India.

The first stage of drilling of the mines had been completed in May last year. The contract for initial drilling was awarded in November 2012.

CIAL had won 5-year licence for exploration and development of mines in Mozambique in August, 2009.

Two coal blocks -A1 and A2- at Motaize, in Tete Province of Mozambique, are spread over 200 sq km.

CIL had registered its own subsidiary CIAL in mid-2009

Coal Minister Sriprakash Jaiswal had earlier said that the acquisition of coal mines overseas should be done in an aggressive manner to meet India's energy requirements.

In order to tide over the shortages of the fossil fuel, the government is also proposing to import coal.