JINDAL MOZAMBIQUE

JINDAL M O Z AM B IQ U E

Expanding its presence through sustainable development of Chirodzi Mine www.jindalafrica.com

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Foothold

Workers celebrate Jindal’s first truckload of coal from the Chirodzi Coal Mine

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With a total resource of 1.2 billion tonnes of coal, Jindal Mozambique looks to improve local infrastructures in order to secure long-term growth of its export operations Writer: Emily Jarvis • Project Manager: Arron Rampling

have been significant steps towards s part of the $18 billion improving the coking coal yield via the conglomerate Jindal addition of a floatation plant as well as Africa Group, Jindal Mozambique is working providing adequate training to staff, expanding the washing plant and the hard to embed and mine’s other facilities. Africa Outlook expand its presence in the country spoke with the company as it begins through sustainable development of to work on the development of two the Chirodzi Coal Mine, which power plants that will make it possible produces coking and thermal coal. for Chirodzi to become a cost effective Backed by the government of export operation, securing the long Mozambique and with financial support from Jindal’s parent group, all term growth of the mine. coal from the mine will be exported Project details overseas to India and its geographic location makes for a convenient direct Located in the Tete Province and with a projected lifespan of 25 delivery system across the years, Chirodzi is Jindal’s Indian Ocean. first coal mine in the “The Jindal brand southern part of Zambezi is recognised as a key and has a resource of 1.2 international player in the billion tonnes of coal. In mining industry worldwide August 2013, the mine and has a substantial was inaugurated by the footprint across the Honourable President African continent,” says Arnando Emílio Guebuza Country Head Chandra who was accompanied by Singh, Jindal Mozambique. Naveen Jindal, Jindal Steel and Power Ltd. Jindal’s first export Chairman Chairman Naveen Jindal. shipment in May 2013 Naveen Jindal is the Chairman Under the current coal marked the achievement of Jindal Steel and Power market and in order to of first phase production Ltd, a part of the O.P. Jindal make the coal project levels of three million Group founded by his late industrialist father sustainable, negotiations tonnes of ROM at are currently underway for Chirodzi, and there

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FÁBRICA DE EXPLOSIVOS DE MOÇAMBIQUE LIMITED

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ÁBRICA DE EXPLOSIVOS DE MOÇAMBIQUE Limited is a Mozambican company specialising in the production, commercialisation and application of explosives. We have clients based in the mining and stone quarry industries throughout Mozambique and the Southern African Development Community (SADC).

With a production capacity of 5,000 tonnes per month per shift at the FEM primary unit located in the Moatize district, and other sites based in Mozambique and throughout Southern Africa, FEM is ideally situated to engage in providing top class bulk and cartridged emulsions to the region, in turn boosting coal projects and the Mozambican economy with a reliable range of products.

The Chirodzi Coal Mine produces coking and thermal coal

two power coal-fired plants collectively named Chirodzi Power Project. The framework agreement was signed with the Minister of Energy in 2011 which was quickly followed by a feasibility study and receiving environmental clearance.

“Not only is the construction of these power stations due to make a vital impact to production capacity and site operations as well as the sustainability of the coal mines but it will be the site of Africa’s first coal slurry pipeline directly to Beira port,

Chirodzi Mine, Washplant

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www.fem.co.mz

The primary intention of establishing these two power plants is to assist in costeffective export operations

which will drive local efficiencies.” comments Singh.

The Chirodzi site will consist of one 150MW unit in the 1st phase, with approximately 10 MW being dedicated for operational consumption.

Thereafter, a further 2nd phase consisting of one unit of 150 MW of power will be placed in situ, providing a total power output of around 290

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Fรกbrica de Explosivos Moรงambique, lda (FEM) was founded in 1955 and is directed to the production of sensitized and non-sensitized emulsions. Since the beginning of its activity, is involved in the reference works of the country, dams, mining projects, construction of road and rail network. www.fem.co.mz | T (+258) 217 458 46 | F (+258) 217 458 02

INFRASTRUCTURE, MINING & METALS, INDUSTRIAL, ENERGY.

ENCOM Offers Engineering Expertise In Process, Electrical And Instrumentation, Mechanical, Civil And Structural, Infrastructure, Materials Handling, Mining, EPCM, Industrial Processing Plant Operations And Maintenance Services. www.encommz.com | encom@encommz.com

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MW to be used by the Mozambican government to provide power to local areas.

“The primary intention of establishing these two power plants is to assist in cost-effective export operations. Through more efficient channels and higher productivity rates, Jindal will significantly contribute to the country’s economy,” says Singh.

Jindal Group owns purpose built locomotives, wagons and 12km of railway infrastructure

Growing economy

Mozambique serves as a strategic gateway into the Middle East, Asia and the neighbouring African countries; Zambia, Zimbabwe and South Africa.

The country is slowly returning to form, transforming from its reputation as one of the poorest countries in the world into one of the fastest growing economies in terms of GDP. The recent Mining Indaba conference also revealed decisive positivity for the

Backed by the financial security and branding of the Jindal Group, we have built a rail road of 12 km and train networks

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future of mining in Mozambique and across Africa more generally, which Singh was pleased to hear.

“A major advantage of any large mining project is the infrastructure benefits it brings. Backed by the financial security and branding of the Jindal Group, we have built a rail road of 12 km and train networks as well as bringing other contributions to the country’s infrastructure in order to fulfil shipping of coal from our three projects in Mozambique; in Zambezi, Moatize and Beira.

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“The port is 685 km away from the mine and so we have optimised our transport links by building a loading platform at the Port of Beria and keeping a coal stock near Moatize rail. Our locomotives can currently transport one million tonnes of coal to the port. We expect to double our export levels as soon as further investments are made into the country’s infrastructure which will minimise logistical challenges going forward,” says Singh.

In the long-term, the company

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Sonil Mozambique

Industrialist Of Tea, Coffee, Cigarettes, Tobacco, Wood, Fruits, Cotton, Nuts, And More.

ak.asj@teledata.mz sonil.moz@teledata.mz Tel: +258 233 22 345

hopes to achieve in excess of 10 million tonnes per annum in coal exports.

“Mozambique has the fourth largest untapped reserves of coal, estimated at two billion metric tonnes, so there is massive potential for growth,” confirms Singh.

Infrastructure challenges

As of the end of 2014, Jindal exported half a million tonnes of coking and thermal coals to India. In order to increase this number and reach full capacity and become cost-effective, Singh says there needs to be a joint effort to rapidly address improvements to Mozambique’s infrastructure as he explains: “National companies, the government, investors and other mining organisations need to work together in order to sufficiently impact upon the country’s infrastructure.

“Just one example of the challenges that we face is with regards to exporting our product. A significant amount of products in general are

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Inauguration of Chirodzi mine by the President of Mozambique

exported from Mozambique and consequently, we need to build a stronger logistical backbone, particularly at the ports; where there is currently no mechanised loading system. The more of us who work together, the more economically sustainable we make Mozambique’s business and living environments,� he emphasises.

Local benefits

In summary, there are of course many direct and indirect benefits that Chirodzi Coal Mine will bring to the local communities and more broadly, the country. Firstly, the mine has provided more than 1,000 jobs so far, a number which is set to increase as and

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For every 50 members of staff, there are five expatriates who work across different aspects of our operations, whether it is from a classroom or through on-thejob training

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when capacity can grow. “For every 50 members of staff, there are five expatriates who work across different aspects of our operations, whether it is from a classroom or through on-thejob training,” states Singh.

Secondly the mine has a set of corporate social responsibility activities to complement its contribution to the country’s GDP, devoting millions of dollars to a wide range of local initiatives including sponsorship for training programmes in the community.

Moving forward, Singh hopes that Chirodzi will progress from its current

Chandra Shekhar Singh Vice President & Country Head, JSPL Mozambique

Night operations at the Chirodzi mine

Mr Singh is a multidimensional professional mining engineer from ISM Dhanbad, India. He brings with him more than 21 years’ diversified experience in strategic planning, mineral resource development, project planning, project execution & management, operations, production, planning and logistics. Prior to this project, Singh was Country Head of Jindal Mauritania.

Before joining Jindal Group, Singh was associated with leading corporate houses such as Aditya Birla Group’s Ispat Group, as well as with Goa mining industries such as Dempo’s and Chowgule. Singh has expertise in technical due diligence; project financing; resource & reserve estimation; mine design; planning & scheduling; pit optimisation; tendering and mine contracting; feasibility studies; mineral resource development; preliminary investigation of greenfield mineral deposits; manpower; and overall project management.

output of three million tonnes of coal, to 10 million tonnes via an extensive and thorough long-term plan to increase capacity. “Within this plan, Jindal Mozambique will continue to assess alternative logistics systems to improve efficiencies which will include the slurry pipeline development on the new power plant site. Needless to say, exciting times are ahead for the Chirodzi Mine,” he concludes.

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JINDAL MOZAMBIQUE JSPL Mozambique Minerais Limitada Building 12, Black 12A, JATV-3, 9th Floor Rua Dos Desportistas, Maputo, Mozambique Tel: +258 21 304 880 / +258 82 30 73 296 Fax: +258 21 304 881 info.moz@jindalafrica.com

www.jindalafrica.com