Indian Company To Invest $116m In Ethiopia’s Delbi Coal Mine |
Mumbai-based miner, May Flower Mining Enterprise Ltd is set to invest $116 million in Ethiopia’s Delbi Mining S.C.’s coal mine over a three-year period.
Delbi, a mining company majorly (53 percent) owned by the Endowment Fund for the Rehabilitation of Tigray (EEFORT) has been looking for a strategic partner to jointly develop the coal mine.
The Delbi coal mine is located in Oromia regional state, Jimma Zone, 400 km from Ethiopia’s capital, Addis Ababa while its mining concession covers a 39.2 square kilometer lot with an estimated coal deposit of 11.4 billion tonnes.
Delbi Coal Mining is set to extract 30,000 tonnes of coal in Ethiopia. It plans to increase its production of coal to 200,000 tonnes of coal over the years.
Delbi General Manager, Alemayehu Deressa told IANS, a news agency, the deal will see May Flower own 70 percent of the company shares while Delbi retains 30 percent.
“We will be responsible for all payable accounts and they will bring the necessary technology, know-how and financing required for the exploration and mining activity,” he added.
May Flower will import mining machinery, mining experts as well as the required finance for exploration and mining works.
A joint management team comprising officials drawn from both companies will also be set up.
According to data from the Ministry of Mines, Ethiopia‘s coal reserves ranging from lignite to bituminous deposits, are estimated at around 376 million tonnes.