News Detail

• The world’s biggest coal producer Coal India Limited (CIL) would reportedly sign an agreement with the Limpopo Government in South Africa to receive mining rights on various coal blocks in that area.Last week, CIL Director (Technical) Nirmal Chandra Jha had said the board would within the coming weeks consider a proposal in terms of which CIL, India’s fourth largest company by market value, would receive interests in coal mines in the province.News24 quoted a senior Limpopo Government official as saying that the provincial government was acting more as a “broker” in this transaction worth many hundreds of millions.Reports suggest that Limpopo Premier Cassel Mathale had apparently invited CIL to participate in developing the province’s coal industry last year, shortly after the Mozambican government had awarded mineral rights on coal blocks in that country.“CIL had received the blocks entirely free of charge after the Mozambican government asked permission to develop mines there. But they paid us several hundred millions,” a source said.

• These mines would reportedly be developed in partnership with the government of Limpopo which, through a state-controlled corporation, will retain a 26 percent interest in the mines, probably to devolve it to black empowerment partners for CIL to comply with the requirements of the mining charter.“The Limpopo government has already handed CIL a draft agreement which took many months of negotiation. This will be discussed at CIL’s next board meeting to be held in two weeks’ time. If the CIL board accepts it, a CIL delegation will visit the country during the week of January 21, during which the agreement will be signed and formally announced,” the source added. (ANI)

Source