Limpopo coal deal under scrutiny

If the board agrees, the offer will be signed by March this current year and will see Coal India having a majority stake, even though the Limpopo government retains 26% from the company that will mine coal within the province.

Coal India, which includes since postponed a fact-finding mission that was due to happen this month, said a couple weeks ago it had $817m (about R6.35bn) which it has to spend by March this year, and the Limpopo government hoped to receive a cut from the state-owned entity’s massive war chest  crusher in india

This is despite the Limpopo government recently being placed directly under administration by national government.

Coal India was also interested in a coal handle Mozambique, but scrapped their tender a week ago to pursue “other global opportunities”.

Limpopo’s own state-owned mining company Corridor Mineral Resources (CMR) – a wholly owned subsidiary of Limpopo Economic Development Enterprise – put into a joint venture with Coal India to formulate new coal mines within the province in 2009. The other government partner is Trade and Investment Limpopo (TIL).

The Indian company produces 80% of India’s coal which is under pressure to produce coal to feed 20 new coal-fired power stations being integrated India  the jaw mining crusher

Five Limpopo departments were recently placed directly under national government administration as well as fiscus is unable to pay its providers.

The Indian mining deal was build over the past couple of years with Premier Cassel Mathale leading the charge, holding several high-level talks in India.

Mathale’s spokesperson, Mashadi Mathosa, told City Press it absolutely was the Indians who approached the premier first using a proposal to do business with the provincial government.

“The premier then advised Coal India to meet with TIL and CMR to begin talks about the subject,” Mathosa said.

She confirmed Coal India’s trip ended up being postponed no date for someone else visit given.

The memorandum of understanding between the parties was signed in September not too long ago. “The parties have accepted work hand-in-hand on identification into the exploration of coal resources in Limpopo province,” she said.

India has expressed a desire for partnering with Limpopo in scientific development and exploration of coal resources so as to export coal to satisfy the current and growing interest in coal in India.

“The memorandum of understanding suggests that the parties are operating towards a productive partnership that could benefit the Limpopo province and also the people of India,” she said.

The Limpopo government holds no coal prospecting rights and might need to buy out other rights holders, Trade and Investment Limpopo us president Motalane Monakedi has said previously. Monakedi has further stated that they were negotiating with more then one rights holder.

Coal mining in large regions of Limpopo, including the Soutpansberg, is problematic due to lack of water.