In a strategic move aimed at strengthening its raw material security, JSW Steel has announced the development of its coking coal mining project, Minas de Revuboe (MdR), located in the Moatize coal basin of Tete Province in Mozambique. The project is expected to play a major role in supporting the company’s long-term steelmaking ambitions while reducing dependence on volatile global coal markets.
A Strategic Resource For Steelmaking
The Minas de Revuboe project provides JSW Steel access to significant reserves of premium hard coking coal, an essential raw material in steel production. The asset holds an estimated 850 million tonnes of coal reserves, with the potential to yield about 250 million tonnes of usable coking coal, making it one of the most promising overseas resources for Indian steelmakers.
JSW Steel plans to develop the mine in phases. The first phase, expected to be completed within the next 2.5 years, is projected to produce 2.4 million tonnes per annum (mtpa) of prime hard coking coal.
Strategically located about 10 km north of Tete city, roughly 450 km from Beira Port, and around 900 km from Nacala Port, the mine enjoys favourable logistics that make it well positioned to supply coal to steel plants in India.
Strengthening Backward Integration
The project forms a critical part of JSW Steel’s backward integration strategy, aimed at securing long-term supply of one of the most cost-intensive inputs in steel manufacturing. With India possessing limited reserves of premium coking coal, overseas assets such as MdR are becoming increasingly important for domestic steel producers seeking stable supply chains.
By developing the Mozambique asset, JSW Steel expects to reduce its exposure to fluctuations in global coking coal prices and optimise its cost structure over the long term.
Sustainability And Efficiency Gains
The company also views the project as a contributor to its sustainability agenda. Premium-quality hard coking coal improves blast furnace productivity and helps reduce carbon emission intensity in steel production, aligning with the company’s broader decarbonisation roadmap.
Mozambique Welcomes Investment
Republic of Mozambique president Daniel Francisco Chapowelcomed the investment, stating that the entry of a global player like JSW Steel marks an important step in developing a world-class mining asset in the country. He added that the project would help demonstrate Mozambique’s attractiveness as an investment destination and its commitment to enabling ease of doing business.
Supporting JSW Steel’s Growth Vision
JSW Group director Parth Jindal said the Minas de Revuboe project represents a significant milestone in securing premium coking coal reserves in Africa. He noted that the asset’s proximity to India would help optimise logistics costs while providing diversified raw material security as the company expands its steelmaking capacity.
JSW Steel has set an ambitious target of reaching 50 million tonnes per annum steel capacity in India by 2030, and the Mozambique mine is expected to play a key role in supporting that growth while cushioning the company against global coking coal price volatility.