Indian industrialist Naveen Jindal’s group is investing $160 million to electrify the Vulcan-operated Moatize coal mine in Mozambique’s Tete province, in a move aimed at reducing diesel dependence, improving efficiency and supporting cleaner mining operations.
The investment will establish a 300-megawatt power system to support mining activities, coal processing and rail transport. Part of the electricity generated is also expected to be supplied to Mozambique’s national grid.
Vulcan, a mining company owned by Jindal Group, acquired the Moatize operation from Brazilian mining giant Vale in April 2022 for more than $270 million. The deal included the mine and the 912-kilometre Nacala Logistics Corridor, which is used to export coal.
Jindal Group, which has interests in steel, mining, energy and infrastructure, had already established operations in Mozambique through coal mining in Tete province, including the Chirodzi coal mine. 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.
Mukesh Kumar, CEO of the mining company operating coal concessions in Tete province, said the project would help Vulcan achieve energy self-sufficiency.
“We are installing a 300-megawatt power plant: roughly 90 megawatts will power our mining operations, 30 megawatts will be dedicated to processing, and about 100 megawatts will electrify our rail corridor,” Kumar said.
He added that the company currently spends about $150 million on diesel imports and aims to reduce that cost while contributing to Mozambique’s broader economy. The company also said the project would cut emissions from heavy machinery, support full equipment electrification and use ash from its thermal power plant to produce green cement.
Mozambique’s Minister of Mineral Resources and Energy, Estevão Pale, welcomed the project, saying it would improve productivity, reduce diesel consumption and lower the environmental impact of mining operations.
“The gradual replacement of fuel-powered equipment with electric systems will make it possible to significantly reduce diesel consumption, lower operating costs, and increase productivity, while simultaneously contributing to more efficient and environmentally responsible mining operations,” Pale said.
He added that Mozambique does not yet refine its own diesel, making fuel efficiency an important economic issue. Pale also said the transition to electric systems could reduce coal dust emissions and improve living conditions for communities near the mine.
The investment comes as mining companies across Africa seek to modernise operations, reduce costs and adopt cleaner technologies while responding to global demand for minerals and energy resources. Through Vulcan, Jindal Group is strengthening its position as a major private-sector player in Mozambique’s mining industry and expanding India’s corporate presence in Africa’s resource sector.
