ICVL to restart operations at Mozambique mine as coking coal prices rise

New Delhi . After suspending operations at its Benga mine in Mozambique in May last year, International Coal ventures (ICVL), the SAIL-led consortium of five state-run units, will soon restart the mine hoping that it will be able to recover variable costs and make some profits as coking coal prices are running high. 
 
ICVL acquired 65% stake in the Benga mine and two green-field coal assets (Tete East and Zambeze) in 2014 from Rio Tinto. The assets have an estimated coal resource of 2.6 billion tonnes and huge CBM potential. SAIL, RINL and NMDC took part in the acquisition while NTPC and Coal India opted out. Tata Steel has the remaining 35% stake in Benga mine.
 
The Benga asset can produce 5.3 million tonne coal per annum. However, given the losses, running up to $7.5 million each month, owing to high mining & transportation costs and subdued prices of coking coal; the promoters were producing only 3 lakh tonne per month before operations were discontinued. Financial Express

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