Mozambique has awarded India's Jindal Steel & Power a 25-year licence to explore and mine for coal in the northwest Tete province, in return for a $180 million investment, the country's resources ministry said on Friday.

Jindal will invest $180 million in the Tete coal mine, as part of a project that will cover 2,1540 hectares and directly employ 1,500 people, the Mineral Resources Ministry said in a statement.

The deal will be formally signed on Monday and the government will own a 10 percent stake.