Jindal Group's Moatize Mine Electrification Transforms African Mining
Vulcan, a mining company owned by India's Jindal Group, has invested approximately US$160 million in the electrification of the Moatize coal mine in Tete Province, Mozambique. The project establishes a 300-megawatt power system that will make it the first fully electric mine operation in Africa, drastically cutting diesel consumption and reducing environmental impacts.
Power Infrastructure
- Total power capacity: 300 MW waste-to-energy power plant
- Mining operations: 90 MW dedicated to powering mining equipment
- Processing: 30 MW for coal processing facilities
- Rail corridor: 100 MW to electrify the rail logistics corridor
- Grid surplus: Excess electricity will be supplied to Mozambique's national grid (Rede Eléctrica Nacional)
Operational Scale
Vulcan acquired the Moatize operation from Vale in April 2022 for more than US$270 million, taking control of the mine and the 912-kilometre Nacala Logistics Corridor used for coal export. Over the past three years, Vulcan has produced more than 35 million metric tonnes of coal annually across its 250-square-kilometre concession. The company also inaugurated the third section of its mine, becoming the first mining operation in Mozambique equipped with a fully electric fleet.
Environmental and Economic Benefits
Mozambique's Minister of Mineral Resources and Energy Estevão Pale praised the initiative for reducing diesel imports — the company currently spends approximately US$150 million annually on diesel — lowering particulate dust emissions, and improving living conditions for neighbouring communities. Vulcan CEO Mukesh Kumar highlighted that the project will achieve energy self-sufficiency while thermal power plant ash byproducts will be used to manufacture green cement. The Jindal Group has signalled plans to invest close to US$1 billion in its broader electrification programme.
