NTPC weighs options to acquire coal mines in Mozambique

Written by Sanjay Jog | Mumbai | Updated: Feb 23 2009, 05:58am hrs
NTPC, which is currently involved in the capacity addition of 22,430 mw capacity by 2012, mulls the 100% acquisition of coal mines or some stakes in Mozambique. NTPC is also open to a long-term coal supply for 25 years. Currently, NTPC team is in Mozambique to weigh all options. NTPC CMD RS Sharma confirmed its move regarding the acquisition.

Sharma told FE, NTPC with the current installed generation capacity of 29,843 mw, is open to all options. The team is currently in Mozambique and after presentation of its report, NTPC will decide its strategy. Our estimate is that an investment of Rs 200 crore is required for one million tonne (mt) coal. NTPC, which currently needs 135 mt coal for its stations, has estimated its coal requirement to increase to 150 million tonne in 2009-10. Majority of coal is procured from the Coal India and its subsidiaries.

Besides, it will import 12.5 million tonne in 2009-10. NTPC proposes to invest as many as Rs 10,000 crore for the development of seven coal mines including two coal mines in joint venture. The company plans to produce 50 mt coal annually by 2013.

NTPC hopes to commence coal production from Pakhri Barwadih block, which has gross reserves of 1,350 million tonne by 2009-10. The other blocks given to the company are Kerandari (228 mt), Chatti Bariatu (243 mt), Chattrasal (150 mt), Dulanga (260 mt), Talaipalli (965 mt), Brahmini (1,900 mt) and Chichro Patsimal (356 mt).