Hyderabad-based BEML Midwest Ltd has acquired its first mine in Mozambique and is close to take over its second mine in Indonesia. The company, a joint venture of Bharat Earth Movers, Midwest Granite and Sumber Mitra Jaya of Indonesia, to undertake contract mining of coal globally.
“We have made our first overseas acquisition in Mozambique and acquired 80 square feet of land where exploration is on to determine the coal seams. Only after the conclusion of exploration a decision will be taken whether the mine will be an opencast or underground,” said BEML Midwest CEO Mukund Reddy.
However, he said there are logistical problems in Mozambique in terms of connectivity and roads, which might delay the production. “During December to April there are heavy rains in the country so we will try and finish all paper work by then. By April next year we hope to get one mine block running.”
Setup with an equity of Rs 100 crore last year BEML holds 45% stake, while the Midwest Granites and SMJ hold the balance 55%. Reddy seemed more upbeat on the Indonesia mine. “We should be able to acquire the mine in the next 2-3 months and production from that mine could start even before mining starts in Mozambique because the coal seam is near the surface.”
The Indonesia mine is also expected to see substantial help from the Rs 540 crore SMJ, the flagship company of the Indonesian Group Mitra Jaya, which will bring its wide expertise in contract coal mining and production.
The coal produced from these mines will be imported to India and the company is exploring the possibility of tying up Coal India Ltd and Singareni Collieries Company Ltd (SCCL) to market the coal.