Jindal Poly bags coal block in Mozambique

08 Jan 2011

Jindal Resources (Mozambique) Limitada, a subsidiary of Jindal Poly Films Ltd that is part of the part of Rs3,000 crore BC Jindal group has bagged a coal block in Mozambique for geological prospecting and exploration of coal.

The coal Block-2 situated in Moatize district of Tete Province was bagged by Jindal Resources after winning a tender that was floated by ministry of mineral resources of the Mozambique government.

The license covers an area of 1,480 hectares, which may have a potential to contain a resource of 150 million tons of coking and thermal coal. The nearest rail head and coal loading station in Moatize is in the west of the license area. The Moatize rail head is connected to Beira port by rail.

Jindal Metal and Mining Limited, a wholly-owned subsidiary of Jindal Poly Films has entered into a joint venture agreement with a Mozambique entrepreneur for prospecting, exploration and mining of coal.

The exploration license is situated around 80 Km south west of Tete town in Changara district, Tete Province. The license may have a potential to contain a resource of 300 millon tons of coal including coking and thermal coal.

Tete Province in Mozambique holds one of the world's largest reserves of untapped coal and global miners like Vale of Brazil, Riversdale of Australia, London-based Kazakh miner ENRC, Japan's Nippon Steel, Jindal Steel and Dubai-based diversified company ETAStar are all involved in prospecting for coal.