Nava Bharat (Singapore) Pte (NBS), a subsidiary of Nava Bharat Ventures, has acquired 65 per cent equity stake in Zambia based Maamba Collieries (MCL) from ZCCM-Investment Holdings Plc (ZCCM-IH).

MCL has coal mining rights over an area of 79 sq km at Maamba in the Sinazongwe district of the southern province of Zambia with mineable reserves of 65 million tonne of high-grade coal and an equivalent reserve of thermal-grade coal. The company proposes to revive coal mining and trading of high-grade washed coal initially. MCL’s long-term viability plan envisages establishment of a mine-mouth coal based power plant of 300 MW.

MCL, under the management of NBS, is likely to enter into a bankable PPA with Zesco, the local power utility of Zambia, and will achieve financial closure for the plant by the end of the current fiscal. Power generation from this plant is envisaged to commence in 2013-14 to meet the growing power needs of Zambia.