India’s Sunflag arm to invest in Mozambique coal mine

The Mozambique subsidiary of India’s Sunflag group, Sol Mineração Moçambique, is poised to invest $222 million in a coal mine in the Mutarara district, a senior government source told Reuters on Friday.

The source said Mozambique’s government awarded the firm the Tete province coal mine, which has reserves of 115.46 million tonnes of coal, according the feasibility studies.

The Indian subsidiary will explore the mine, which has an estimated life span of 25 years, starting in 2017.

Mozambique’s government on Thursday signed the concession contract with the company, which is expected to produce 5 million tonnes of raw coal a year, both coking and thermal coal.

It is expected that upon starting the exploration of the coal mines the company will pay $300 million a year in taxes to the Mozambican authorities, the source said.

– Reuters