JSPL Mozambique Minerais intends to increase coal production from the current 3.0 million to 4.5 million tonnes, with effect from this year, said the director-general of the company operating out of Chirodzi, in the district of Marara in the central Mozambican province of Tete.
Rajendra Tiwari told daily newspaper Notícias that work to expand the coal processing unit, underway since the first half of 2019, is in the final phase and is expected to be completed this month.
The subsidiary of Indian conglomerate Jindal Steel and Power Ltd (JSPL), which this year started the second phase of exploration of coal in Chirodzi, plans to raise production levels to achieve annual production of 5.0 million tonnes, “which will contribute to the sustainability of the mining operation.”
Operating since mid-2013, JSPL Mozambique Minerais in 2019 produced approximately 2.4 million tonnes of coal, which was sold to the Asian market.
This production, according to Tiwari, does not yet meet the company’s targets, as market demand and competition with other coal mining companies are demanding increased production, productivity and quality of the final product.
The director-general of the company also pointed out that despite the poor quality of coal in the Chirodzi basin compared with the Moatize coal basin, the demand is satisfactory especially for coking coal that is used to manufacture steel.
The major constraint on the company in terms of operating costs is due to the distance from the mine to the railroad terminal in the city of Moatize, approximately 150 kilometres, according to the director-general of JSPL Mozambique Minerais.