Planned to be carried out in the next three years, the project will include construction of a 500km railway network and roads.
ICVL official was quoted by Press Trust of India as saying: "There are logistic issues.
"At this point of time it (mining operations) is making cash losses. There are about one billion tonnes of coal reserves available."
The private sector undertaking has recently acquired the Mozambique coal blocks from Rio Tinto. The acquisition included Rio’s stake in Benga coal mine, Zambeze and Tete East projects.
ICVL planned to boost production at the Benga mine to around 12 million tons from five million tons a year.
ICVL is a consortium established to acquire coking coal mines overseas.
