Indian mining giant, Tata Steel Group has disposed of its coal mining assets at Benga Mine in Mozambique’s Tete province following an extended period of heavy losses.

“The Tata Steel group has decided to put an end to any further investment in the Benga mine and plans to sell the 35 percent stake it owns in the mining project in Tete province, Mozambique,” T.V. Narendran Managing Director of Tata Steel.

Narendran added that group was not willing to invest more money in the project and added that the Steel Authority of India Ltd (SAIL), which leads the state consortium, has been informed of the firm’s decision.

He also said the group, which has faced difficulties in the operation of mining assets abroad particularly in transporting coal to steel mills in Europe and India, will focus on its mining and steel production business in India.

Mozambique has become one of the most promising countries in Africa in terms coal resources. The country’s Tete Province is estimated to hold large untapped coal reserves of 25 billion short tons, according to the International Energy Agency.

The southern African nation exported its first batch of coal in 2011 and expects to become the world’s largest coal exporter in the coming years. It is also spending about $50 billion in infrastructure projects to access its coal reserves.

By George Mpofu