Indian group Jindal Steel & Power negotiates energy supply for mine in Mozambique

15 October 2012

The Cahora Bassa Hydroelectric Dam (HCB) is negotiating supplying power to the coal project owned Indian group Jindal Steel & Power (JSPL), located in the Zambezi sedimentary basin in Mozambique’s Tete province, the chairman of HCB said.

Speaking to daily newspaper Notícias, Paulo Muxanga said that negotiations involved Mozambique’s main power distributer, state company Electricidade de Moçambique (EdM) which currently receives just over 500 megawatts from HCB.

HCB has an installed production capacity of 2015 megawatts, but in July was forced to reduce the amount of power available for export due to a fault.

Muxanga also said that JSPL planned to start operating in the next two months and initially, starting in 2013, the mine was expected to produce 1.68 million tons of coking coal for export and 3.9 million tons of thermal coal for the domestic and foreign markets.

The Indian company may thus become the third largest group operating a large-scale coal mine in Mozambique, after Brazil’s Vale and Anglo-Australian company Rio Tinto.

Jindal Steel & Power will have to invest an estimated US$180 million in Chirodzi.

The Chirodzi coal mining project is of strategic importance to JSPL, which in 2020 plans to be producing 20 million tons of steel and 21,000 megawatts of power, the latter in partnership with its subsidiary Jindal Power.

In Mozambique the group has a coal mine with estimated reserves of 1.2 billion tons, the mining license for which was granted by the Mozambican authorities in February, 2009. (macauhub)