The 300MW power plant will cut diesel use and supply excess electricity to Mozambique's grid, CEO Mukesh Kumar said. The Jindal Group's $160M push electrifies the Moatize coal mine.
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Mozambique's Moatize coal mine is getting a $160 million electrification push from Indian billionaire Sajjan Jindal's Jindal Group. The money will build a 300-megawatt power plant to run mining equipment, processing, and the railway corridor that moves coal to port.
Vulcan, the Jindal-owned mining company that runs the Tete province operation, acquired the mine from Vale in April 2022 for more than $270 million. The deal included the 912-kilometre Nacala Logistics Corridor.
Mukesh Kumar, Vulcan's CEO, said the power plant would allocate roughly 90 megawatts to mining, 30 megawatts to processing, and about 100 megawatts to the rail line. "We are installing a 300-megawatt power plant," he said. Kumar added that the project would let Vulcan achieve energy self-sufficiency and sell excess electricity to Mozambique's national grid.
"Currently, we spend roughly $150 million solely on diesel imports," Kumar noted. The company plans to replace diesel-powered equipment with electric systems, cut emissions from heavy machinery, and use ash from the thermal plant to produce green cement.
Mozambique's Minister of Mineral Resources and Energy, Estevão Pale, said the shift would reduce diesel consumption, lower operating costs, and raise productivity. "The gradual replacement of fuel-powered equipment with electric systems will make it possible to significantly reduce diesel consumption," he said. Pale also said the project would lower coal dust emissions and improve living conditions for nearby communities.
The Jindal Group, valued at about $18 billion, has expanded its Mozambique footprint through the Chirodzi coal mine and the Moatize acquisition. Vulcan now operates a 250-square-kilometre concession in Moatize and has produced more than 35 million metric tonnes of coal annually over the past three years.
The investment is part of a broader trend of African mining companies modernizing operations and adopting cleaner technologies. Through Vulcan, Sajjan Jindal's group is positioning itself as a major private-sector player in Mozambique's resource sector.
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