Indian company JSW Steel has initiated the development of the Minas de Revuboè (MdR) coking coal mining project in the Moatize coal basin, 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 from JSW Group and Indian Government officials.
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This event is seen as 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 steel manufacturing.
Its is strategically located approximately 10km north of Tete city, with proximity to the Beira and Nacala ports, offering logistical benefits for supplying Indian steel plants.
Total reserves at MdR are estimated at 850 million tonnes (mt), with 250mt projected to be extractable.
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By GlobalDataThe project will be developed in stages, with the initial phase aiming to produce 2.4 million tonnes per annum (mtpa) of prime hard coking coal over the next two and a half years.
This initiative marks a pivotal move in JSW Steel’s strategy to integrate its supply chain backwards, providing a steady supply of a crucial material given India’s limited domestic premium coking coal resources.
The project is expected to help manage cost fluctuations by reducing exposure to global coking coal price volatility and optimising long-term production costs.
Securing high-grade coking coal also aligns with JSW Steel’s sustainability goals by potentially lowering carbon emissions in steel production.
The quality of coal from MdR is expected to support the company’s wider decarbonisation 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 looks forward to creating a world-class mining asset. With JSW Steel’s presence, Mozambique will prove to international investors the ease of doing business in Mozambique.”
