Cokal (ASX: CKA) has added to the company's metallurgical coal stable with this latest agreement with Empresa Moçambicana de Exploração Mineira (EMEM – Mozambique Mining Exploration Company) to develop coal projects in the fertile Mozambique Basin.
The agreement provides for post exploration development through to mining and sale of coal.
This follows Cokal's other metallurgical coal projects in Kalimantan and Tanzania, with the Tanzanian operations in a joint venture with Tanzoz Resources.
The strategic significance for Cokal in Mozambique is the country is poised to become Africa's major coking coal producer, and a major player in the world coking coal market.
This global position follows the discovery of significant resources and reserves of hard coking coal preceded by major exploration programs by international mining companies including Vale (NYSE: VALE), Riversdale (Rio Tinto (ASX: RIO)), Revubue (Nippon Steel, Posco et al) as well as other programs.
Jim Middleton, managing director and CEO of Cokal, said “Cokal is looking forward to a partnership in the Mozambique mining industry, where foreign investors are welcome, and facilitate building financial and technical capabilities within the country.
“We have the financial backing, the commitment and experience to bring these assets to production.”
Cokal will hold 80% of the joint venture, with EMEM the remaining 20%, with Cokal providing funding for the exploration over three years.
EMEM is a state owned corporation formed by the Mozambique government in order to participate in mining projects, undertake exploration and mining development as well as promoting value addition to mineral products.