India top steelmaker considers expanding coal mine capacity in Mozambique

sxcoal.com General, Coking Coal 2023-11-14 13:20:42

Steel Authority of India Ltd (SAIL), the country's largest state-owned steel producer, is planning an investment of $150-200 million on expanding coal mining capacity in Mozambique, Africa, along with other shareholders of the International Coal Ventures Private Limited (ICVL), according to a local media.

The proposed expansion includes doubling the capacity of Benga mine to 4 million tonnes per annum (Mtpa), conducting explorations at other mines, and establishing evacuation facilities such as increasing rail network. Detailed project reports are currently in the pipeline.

SAIL, together with Central Public Sector Enterprises that hold stakes of ICVL – including Rashtriya Ispat Nigam Limited (RINL) and National Mineral Development Corporation (NMDC) – has built a joint venture with SAIL. The JV oversees three coal mines in Mozambique: Benga, Zambeze, and Tete East.

Amarendu Prakash, SAIL's chairman and managing director, mentioned the capacity enhancement of the Benga coal mine might occur, and the feasibility study for the Zambeze coal mine is underway.

Coking coal is a crucial raw material for steel production, and India, as the world's second-largest crude steel producer, heavily relies on it. The proposed capacity expansion aims to diversify the geographic sources of coking coal to reduce supply chain risks.

Benga currently has a combined capacity of 2 Mtpa for saleable coal. It is the only operational mine of the three for the time being.

SAIL is also considering increasing coking coal purchases from Russia to ensure a consistent and reliable supply.

(Writing by Alex Guo Editing by Emma Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

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