The Indian company JSW Steel has started the development of the Minas de Revuboè (MdR) coking coal mining project in the Moatize coalfield, Tete province, Mozambique.
The announcement was made during a ceremony in Moatize, attended by the President of the Republic of Mozambique, Daniel Francisco Chapo, and representatives of the JSW Group and Indian government officials.
This event is considered a significant development in industrial ties between India and Mozambique.
The MdR project provides JSW Steel with access to extensive reserves of quality hard coking coal, essential for steelmaking.
It is strategically located approximately 10 km north of Tete city, close to the ports of Beira and Nacala, offering logistical benefits for the supply of Indian steel plants.
Total reserves in MdR are estimated at 850 million tonnes (mt), of which it is expected that 250 million tonnes can be extracted.
The project will be developed in stages, with the initial phase aiming to produce 2.4 million tonnes per annum (mtpa) of premium hard coking coal over the next two and a half years.
This initiative marks a critical step in JSW Steel’s strategy to integrate its supply chain backwards, providing a steady supply of a crucial material, given India’s limited domestic resources of premium coking coal.
The project is expected to help manage cost fluctuations by reducing exposure to global coking coal price volatility and optimizing long-term production costs.
Sourcing high-quality coking coal also aligns with JSW Steel’s sustainability goals by potentially reducing carbon emissions in steel production.
The quality of MdR’s coal is expected to support the company’s broader decarbonization efforts.
Chapo said: “The government and people of Mozambique are elated by the entry of a world leader like JSW Steel into Mozambique.
“With the development of the Minas de Revuboè project, Mozambique hopes to create a world-class mining asset. With the presence of JSW Steel, Mozambique will demonstrate to international investors the ease of doing business in Mozambique.”
“JSW Steel starts coal mining project in Mozambique” was created and originally published by Mining Technology, a brand owned by GlobalData.
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