JSW Steel to Develop Coking Coal Mine in Mozambique for Growth

JSW Steel has declared that it will explore the Minas de Revuboa coking coal mine in Mozambique in stages so as to get long term supply assurance of one of the important inputs in the steel manufacturing.

The mine is situated at Moatize coal basin in Tete Province and has an impressive reserve of 850 million tonnes of coal, and has the potential to produce 250 MT of coking coal that could be used. The project will be carried out in stages, and the initial stage should take a period of 2.5 years.

This stage will be aimed at the production of 2.4 million tonnes per annum (MTPA) of prime hard coking coal. The decision by JSW Steel to expand the mine is related to its strategy of backward integration, which will be important in ensuring that the company has a stable and cost-effective supply of raw materials.

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The domestic supply of the premium coking coal in India is also of a restricted nature, and hence the steel manufacturing industry, such as JSW Steel, ought to consider the possibility of captive sourcing abroad.

Parth Jindal, Managing Director of JSW Group, emphasized the strategic importance of this venture, stating, "As we grow to 50 MTPA steel capacity in India by 2030, we hope that this asset will provide strategic and diversified raw material security and cushion JSW Steel against volatile global coking coal prices, while fueling our sustainable growth vision."

This action to obtain a strategic supply of coking coal is an important move in the long term development strategy of JSW Steel and will assist it to be stronger in the competitive steel industry in the world.