Coal news and updates

ICVL aims to bring down high cost of mining in Mozambique

April 21: India Coal Ventures Ltd (ICVL), which has bought a coal mine in Mozambique from Rio Tinto, is looking to bring down the high cost of mining in the block which had compelled Rio to sell off, N C Jha, CEO and MD, ICVL, told ICMW.

“It was purchased from Rio Tinto because they wanted to exit as their cost of mining was very high….They knew that their cost was very high and they were not in a position to reduce that cost and so they left,” Jha said.

“ICVL has bought this property from Rio because the partner companies are users also, who need coal. We know how to control cost and we are moving in that direction,” he added.

Asked about the monthly despatch of coal from the mine to India for usage by SAIL, Jha said, “Right now it is three shipments a month and one shipment is of around 35,000 tons. That means around 100,000 tons of coal is coming monthly. Occasionally, the shipments fall to 2 vessels per month because of logistics issues and sometime there is delay in arrival of coal from mines to ports.”

He further revealed that the coal comes at Paradip port or Vizag port. “We have committed to SAIL that we will supply three ships every month or about 100,000 tons per month or about 1.2 million tons annually,” he noted.

ICMW understands that Tata Steel, which has 35% stake in existing mines which was acquired by SAIL from Rio Tata, is currently not taking delivery of coal due to higher ash content in it.