India’s overseas coal acquiring assets vehicle has intentions to explore the feasibility of constructing a coal gasification plant at Indian Coal Ventures Limited’s (ICVL) Mozambique coal mine.
It had been estimated that only 35% of production from the mine at Tete would be coking coal and suitable to be shipped back to India to meet growing demand from domestic steel mills.
The bulk of production of steam grade coal from the mine would not be viable to be shipped to India.
“If steam coal could be converted to gas, it would become viable for transporting the gas back to India given that an estimated 14 000 MW of gas-based power plants were idling across the country in the face of a gas shortage,” ICVL official said.
The plant is to provide option to tackle production of low steam grade coal from the mine, which would not find many takers.
The expression of interest floated by ICVL seeking buyers in Mozambique or neighbouring countries for steam grade coal had not evoked any interest either.
Even a proposal to set up a thermal power plant linked to ICVL’s mine through private investments did not come to fruition in the face of problems related to evacuation of electricity generated from such a project, leaving the Indian miner with problems of surplus steam coal.