ICVL seeks user cos to lift Mozambique thermal coal

International Coal Ventures Ltd (ICVL) has received expressions of interest from four companies for setting up pit-head chemical and power generation facilities at ICVL’s Benga mine in Mozambique.

Benga is a 5.2-million-tonne per annum mixed-coal mine in Mozambique.

While the 35 per cent coking or metallurgical coal is exported to Indian steel makers, the thermal coal (5500 kcal/kg gross calorific value) is not finding takers in the local market leading to high pit head stock. ICVL, a joint venture of Indian steel makers, acquired the mine from Rio Tinto in August 2014. To create local demand for thermal coal, ICVL sought expression of interests for setting up pit head facilities. The miner’s role will be limited in offering fuel to the user companies on a long term basis.

N C Jha, Managing Director of ICVL, Mozambique, told BusinessLine that two EoIs each were for the chemicals and power generation.

ICVL decided to seek firm offers for the proposed coal-to-chemicals (ammonium nitrate) in a fortnight. Amonium nitrate is used in fertiliser manufacturing. The miner will widen the search for power generators through a separate notice. “For selling thermal coal, we are according priority to the chemical project as there is ready local demand for nitrogenous fertiliser”, he explained. ICVL is looking to sell approximately 0.5 million tonnes of fuel to ammonium nitrate producers.

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