Located on the southeast coast of Africa, Mozambique is the world’s 35 largest country and has become recognised as a favourite hot spot for countless mining companies, particularly those interested in coal. With coal found in the country having garnered a reputation for its purity, Mozambique has earned the moniker of being the “natatorium of coal mines”.
With an estimated 2.4 billion tonnes of coal reserves though to exist within the Tete province alone, it comes as little surprise that coal mining exploration today represents a cornerstone industry of the country and a major contributor to its economy. It should also then be of little surprise that Mozambique continues to attract the attention of major multinational businesses and companies, keen to establish a presence within its borders.
One such business is Jindal Steel and Power (JSPL), a leading player in the steel, power, mining, coal to liquid, oil and gas, and infrastructure sectors with an annual turnover of approximately $15 billion. It was in 2008 that the company incorporated and registered JSPL Mozambique, before commencing with mining prospection in the final quarter of that year at its concession area in Chirodzi of the Cahora Bassa district.
“JSPL’s primary reason for coming to Mozambique,” explains Vice President and Country Head, Manoj Gupta, “is to support Jindal’s steel plant operations in central India through the export of coal, one of the main raw material ingredients required during the steel production process. Having established a footprint with the country we wasted no time in setting up exploration programmes and testing coal material in our laboratories, bringing us to the point where today we are ready to export our first shipment of coal.”
With first coal ready to be moved from JSPL Mozambique’s mine site, the company is now in a position where it can begin acquiring a rolling stock of vehicles that can transport the product to Mozambique’s port facilities.
Despite the considerable progress the company has made, challenges do still present themselves, particularly the logistical issues caused by a lack of crucial infrastructure within the country. For its part the Mozambique government is making serious strides to remedy such issues by pushing forward various large-scale projects that include creating increased port capabilities and a new railway line linking the core mining areas to the coast.
“JSPL views its operation in Mozambique as being part of a long-term commitment to the country,” Gupta enthuses. “It is for that reason that we have repeatedly stressed our support for the government’s plans for the country and we stand ready to help in any way we can, be it as a partner, financial or a user. Our Chairman, Mr Naveen Jindal, has held discussions with the government of Mozambique, and we have decided to expand our search into good quality iron ore. If we can find this iron ore then we would be very interested in setting up a steel plant as well in Mozambique”
As part of its commitment to the country, JSPL also aims to play a pivotal role in Mozambique by contributing not only to its economy, but also by uplifting the lives of the communities around which it operates. One of JSPL Mozambique’s main initiatives in recent years has involved efforts to increase the employment opportunities available to the said communities, whose people have already proven that they want to engage in the work that JSPL is undertaking.
Today the company’s mine provides either direct or indirect employment for upwards of 1,000 people, many of whom reside locally. JSPL Mozambique has also helped bring other important changes to the area by investing significant amounts of capital into various infrastructure projects around the mine such as new roads and telecommunications networks.
“One of the things that pleases us most,” Gupta states, “is the fact that during our time in Mozambique we have witnessed things changing for the better and we hope to contribute further to improving the standards of living in the area in the months and years to come. To date we have donated ambulances to the Tete Hospital to help improve response times, built an on-site clinic, which is accessible to all people from the surrounding area, donated malaria kits to communities and distributed blankets and bed sheets to the Chirodzi Primary Health Centre. We now plan to follow this up with the building of both a primary and secondary school in the near future.”
In February 2013, JSPL Mozambique took the next step in its development by commissioning a 400 TPH wash plant. The commissioning of this plant represents a strategic move towards further expansion of the company’s operations. It also paves the way for the company’s plans of one day producing up to 20 million tonnes of coal per year, a number it plans to achieve through continued investment in the mine as well as the infrastructure to support its operations.
“Our plans for building a coal-fired power plant are well underway,” Gupta concludes, “with an environmental assessment being carried out as we speak and a MOU having been signed with the Ministry of Energy. We believe that this plant and the power it will generate will bring with it an increase in job opportunities for individuals and small businesses within the area and will unquestionably help Mozambique develop further still in a big way.”
Written by Will Daynes, research by Abi Abagun
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