Indian port operator, Essar Ports, has sought the approval of its shareholders to invest up to US$25 million in a joint venture, which plans to develop a coal terminal at the Beira port in Mozambique.
Essar Ports reported:
Resolved that pursuant to Section 372 A and other applicable provisions of the Companies Act, 1956...Approval of the company be and is hereby accorded for investment in New Coal Terminal Beira, S.A. (NCTB) either directly/through a subsidiary/an intermediate company for an amount not exceeding USD 25,000,000.
The investment will be made for developing the terminal with 10 million tonne a year capacity and also to provide a corporate guarantee of up to US$10 million on behalf of the JV.
NCTB has already secured a letter of intent from Ministry of Transport and Communications of Mozambique granting a long- term concession for 30 years with an option to extend the period by another 10 years for the development of this Terminal on DBOOT (Design, Build, Own, Operate and Transfer) basis.
The coal deposits of the Moatize region of Mozambique are calculated to exceed 27.6 billion tonnes, which is 3 % of the world's estimated total coal reserves of 984 billion tonnes.