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CIL scales back Mozambique plans

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World Coal,

India’s state-owned coal miner, Coal India (CIL) is to give up over 75% of its Mozambique coal license areas, according to a company filing with the Bombay Stock Exchange.

Of the 224 km2 included in the original licenses, CIL is to keep just 54 km2 that “will be of actual interest with coal bearing horizon occurring with 55 m depth,” the company said. The announcement follows an Interim Geological Report prepared by CMPDIL, a subsidiary of CIL.

CIL had acquired the licenses as part of a push in the 12th Five-Year Plan (2012 – 2017) to develop coal assets in Mozambique to help meet domestic demand in India. However, scaling back these commitments will allow the company to focus on boosting its domestic coal production to the 1 billion t target set by the government.

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