JSW Steel Launches Coking Coal Project in Mozambique
Filing Summary
JSW Steel Ltd has announced the Minas de Revuboè (MDR) coking coal mining project in Mozambique. The project, located in the Moatize coal basin, Tete Province, grants access to 850 million tonnes of reserves, with 250 million tonnes of usable coking coal. The first phase aims to produce 2.4 million tonnes per annum over 2.5 years. This initiative aligns with JSW Steel’s strategy for raw material security and cost optimization. The project was inaugurated with Mozambique’s President and JSW Group’s Parth Jindal in attendance.
JSW Steel Ltd has announced the commencement of the Minas de Revuboè (MDR) coking coal mining project in Mozambique. The project is situated in the Moatize coal basin, Tete Province. It was inaugurated in a ceremony attended by the President of Mozambique, Daniel Francisco Chapo, and Parth Jindal from the JSW Group. The project is part of JSW Steel’s strategy to secure raw materials and enhance India-Mozambique economic cooperation.
The MDR project provides JSW Steel access to substantial reserves of premium hard coking coal, a critical raw material for steel production. The project encompasses 850 million tonnes of reserves, with the potential to yield 250 million tonnes of usable coking coal. The first phase of development is planned to produce 2.4 million tonnes per annum of prime hard coking coal over the next 2.5 years.
The project is strategically located approximately 10 km north of Tete city, 450 km north of Beira Port, and 900 km south-west of Nacala Port. This location offers logistical advantages for supplying Indian steel plants. The project is expected to support JSW Steel’s backward integration strategy by providing long-term supply assurance for coking coal, a cost-intensive input in steel manufacturing.
The development of the MDR project will occur in phases. The initial phase is expected to be completed over 2.5 years, with a production target of 2.4 million tonnes per annum. This phased approach allows JSW Steel to gradually increase its production capacity and optimize its cost structure.
The project involves several key entities. JSW Steel is responsible for the development and operation of the mining project. The inauguration ceremony was attended by Mozambique’s President, Daniel Francisco Chapo, and Parth Jindal from the JSW Group, highlighting the collaboration between the Indian company and the Mozambican government.
The MDR project is significant in the context of India’s limited domestic premium coking coal resources. It represents a strategic move by JSW Steel to mitigate exposure to coking coal price volatility and secure a stable supply of high-quality raw materials. The project’s high-grade coal profile is also aligned with JSW Steel’s sustainability objectives, contributing to reduced carbon emissions in steelmaking.
JSW Steel is a leading integrated steel company in India, part of the diversified JSW Group. The company focuses on expanding its steel production capacity and securing raw material sources to support its growth. JSW Steel is committed to sustainability and aims to reduce its carbon emissions and enhance its energy efficiency in line with global standards.