JSW Steel Announces Coking Coal Mining Project in Mozambique

JSW Steel has announced the Minas de Revuboè (MdR) coking coal mining project in the Moatize coal basin in Tete Province, Mozambique, marking a step in the company’s strategy to secure overseas raw material supplies for steel production.

The announcement was made at a ceremony in Moatize attended by Daniel Francisco Chapo, President of Mozambique, Parth Jindal of the JSW Group, and Robert Shetkington, India’s High Commissioner to Mozambique, along with other government officials.

The project will give JSW Steel access to coking coal reserves in the Moatize coal basin. The mine has estimated reserves of about 850 million tonnes, with the potential to produce around 250 million tonnes of usable coking coal.

JSW Steel plans to develop the mine in phases. The first phase is expected to be completed over the next 2.5 years, with production capacity of 2.4 million tonnes per annum (mtpa) of prime hard coking coal.

The MdR mine is located about 10 km north of Tete city, around 450 km from Beira Port, and approximately 900 km from Nacala Port, providing access to export infrastructure for shipments to India and other markets.

The company said the project forms part of its backward integration strategy to secure a long-term supply of coking coal, a key input in steelmaking. India has limited domestic reserves of premium coking coal, making overseas sourcing important for steel producers.

According to the company, securing supplies from the MdR project is expected to help reduce exposure to fluctuations in global coking coal prices and support JSW Steel’s expansion plans.

Speaking at the event, President Daniel Francisco Chapo said Mozambique welcomes investment in the mining sector and expects the project to contribute to the development of the country’s resources.

Parth Jindal said the project would support the company’s plans to expand steelmaking capacity in India to 50 mtpa by 2030, while strengthening its raw material supply base.

JSW Steel currently has a consolidated crude steel capacity of 35.7 mtpa, including operations in the United States, with 34.2 mtpa located in India. The company plans to expand consolidated capacity to 43.4 mtpa over the next three years.

The company operates several steel plants in India, including its Vijayanagar facility in Karnataka, which is the largest single-location steel plant in the country.