Adding Value to life

Africa Outlook - - Contents - Writer: Matthew Staff

Grow­ing spirit the Mozam­bi­can way

The re­ces­sion in the coal mar­ket af­fected the en­tire value chain across the com­mod­ity’s sup­ply and de­mand be­tween 2013 an 2016, mak­ing the need for a lo­calised, strate­gic, flex­i­ble ap­proach to re­cov­ery all the more sig­nif­i­cant. For­tu­nately for Jin­dal Mozam­bique, such philoso­phies have been an in­te­gral part of the wider Jin­dal struc­ture in Africa for decades.

Back in those more chal­leng­ing times, in­ter­na­tional coal rates fell from $250-300/MT to as low as $90/MT, but a change of tack and an ag­ile ap­proach to di­ver­si­fi­ca­tion meant that Jin­dal Mozam­bique ne­go­ti­ated the chal­lenge bet­ter than most.

“Be­ing a dy­namic or­gan­i­sa­tion helped us to sur­vive even dur­ing these dif­fi­cult times,” af­firms Coun­try Man­ager, Chan­dra Singh. “We had to re­vise our short-term as well as longterm goals in or­der to ac­com­mo­date the con­stantly fluc­tu­at­ing in­ter­na­tional coal mar­ket, but we have taken cer­tain mea­sures to­wards re­or­gan­is­ing strate­gies re­quired to pro­duce coal more ef­fi­ciently even at lower sell­ing prices.

“We have rene­go­ti­ated many of our large con­tracts with sup­pli­ers and ser­vice providers to al­low us to cre­ate win-win sit­u­a­tions for all stake­hold­ers in­volved with our busi­ness. Mean­while, we strived hard to re­duce our over­all cost of pro­duc­tion by in­tro­duc­ing rad­i­cal changes through­out our or­gan­i­sa­tional struc­ture.”

The ris­ing prices of coal in the in­ter­na­tional mar­ket now have given hope to all coal ex­porters for 2018, Jin­dal hav­ing placed it­self in a prime

po­si­tion to strike now that the iron is hot. Ac­cord­ingly, the Com­pany has de­cided to in­crease the ex­ist­ing min­ing ca­pac­ity as well as its coal pro­cess­ing ca­pac­ity to 3.6 mil­lion tonnes per an­num; in line with its over­all ex­pan­sion plan of reach­ing 10 mil­lion tonnes per an­num.

Im­proved per­for­mance

Much of this ex­pan­sion will be tar­geted to­wards Jin­dal’s on­go­ing work at Chi­rodzi Mine, a pro­ject that be­gan back in 2012 and that has an es­ti­mated re­source of 2.7 bil­lion tonnes of coal as cer­ti­fied by an in­de­pen­dent tech­ni­cal as­ses­sor.

The open­cast mine has an ex­pected life­cy­cle of 25 years, and has long been the Com­pany’s head­line act.

“We have now planned an ex­ten­sion to this pit that would al­low us to in­crease our min­ing ca­pac­ity over the next five years,” Singh ex­plains. “We are also in the process of up­grad­ing the en­vi­ron­ment mon­i­tor­ing sys­tem across lo­ca­tions of busi­ness ac­tiv­ity in or­der to bet­ter an­a­lyse and con­trol our emis­sions. Fur­ther­more, we are plan­ning to in­stall GPS track­ing sys­tems in our equip­ment and ma­chin­ery al­low­ing us to mon­i­tor, an­a­lyse and im­prove their per­for­mance.”

Cap­i­tal ex­pen­di­tures to fa­cil­i­tate ca­pac­ity en­hance­ments and op­er­a­tional ex­cel­lence are no new thing for

Jin­dal; its ded­i­ca­tion to con­tin­u­ous im­prove­ment in­dica­tive of the suc­cess it has en­joyed over the years.

To this end, a whole host of ad­di­tional in­vest­ments are in the pipe­line over the course of 2018 and be­yond to com­pound its rep­u­ta­tion and to cap­i­talise on a strength­en­ing mar­ket.

“We have also im­ple­mented SAP mod­ules across all our lo­ca­tions in or­der to stream­line our pro­cesses and ef­fec­tively an­a­lyse our busi­ness,” Singh of­fers as a fur­ther ex­am­ple. “We also have a plan in place to re­place our ex­ist­ing fleet of HEMMs that have

worked for more than four years now and are thus near­ing the end of their life­cy­cle.

“Fi­nally, we have a plan to con­struct a sin­gle 2x75MW coal-fired power plant at the pit head for our in­ter­nal op­er­a­tional con­sump­tion as well as to pro­vide power to the Mozam­bi­can Gov­ern­ment. This will then be dis­trib­uted to the lo­cal ar­eas through the cen­tral grid.”

Equip­ping the lo­cal com­mu­nity

The con­struc­tion phase of the power plant is ex­pected to start at the end of the year and al­ludes to a sig­nif­i­cant driver of Jin­dal Mozam­bique’s growth. It’s not sim­ply the case that Jin­dal is re­act­ing to the coun­try’s min­ing po­ten­tial and trends, but in large part the Com­pany is ac­tu­ally driv­ing such ini­tia­tives and so­cio-eco­nomic devel­op­ment.

Singh de­tails: “We know that Mozam­bique is one of the rich­est coun­tries in Africa in terms of min­eral re­sources. With the dis­cov­ery of large nat­u­ral gas de­posits in Mozam­bique, heavy in­vest­ment is ex­pected in this sec­tor. Vale has in­creased the over­all

pro­duc­tion ca­pac­ity and de­vel­oped a ded­i­cated freight cor­ri­dor from Moa­t­ize to the port of Na­cala to in­crease an­nual ex­ports [to this end].

“Also, the Mozam­bique Gov­ern­ment has given green sig­nals to many in­fra­struc­ture projects through­out the coun­try. Large projects like Ma­cuse

Rail line from Ma­cuse port to Chitima in Ca­hora Bassa dis­trict would pro­vide more av­enues to coal ex­porters and cre­ate a lot of em­ploy­ment for Mozam­bi­can cit­i­zens.”

The re­cent an­nounce­ment of an $8 bil­lion in­vest­ment into a coral float­ing LNG devel­op­ment pro­ject is set to cre­ate sim­i­lar so­cially-en­rich­ing ben­e­fits in the coun­try, as both an eco­nomic and busi­ness devel­op­ment fa­cil­i­ta­tor.

And with Jin­dal’s ex­pan­sion plan in place, the Com­pany too will be con­tribut­ing to Mozam­bique’s al­len­com­pass­ing skills devel­op­ment goals.

“We are plan­ning to part­ner with lo­cal man­power out­sourc­ing agen­cies to pro­vide us with the re­quired skill-sets at the mine site, all the while giv­ing pref­er­ence to lo­cal con­tent,” Singh says. “With in­creas­ing Gov­ern­ment reg­u­la­tions with re­gards to the im­port of skillsets into Mozam­bique, it has be­come im­per­a­tive for al­most all play­ers in the min­ing in­dus­try to de­velop lo­cal tal­ent.”

Con­se­quently, the Com­pany has planned to ini­ti­ate a train­ing cen­tre for em­ploy­ees and the sur­round­ing com­mu­ni­ties; com­ple­mented by nu­mer­ous train­ing pro­grammes to aid ar­eas of lan­guage train­ing, and in­dus­trial and vo­ca­tional up-skilling.

“Our aim is to equip the lo­cal com­mu­nity with ba­sic skills of ar­ti­sans so that they can earn a liveli­hood apart from sim­ply get­ting em­ployed at the mine site,” Singh con­cludes. “We are also plan­ning train­ing pro­grammes to de­velop the skill-sets nec­es­sary for our busi­ness that would help us re­duce the gap be­tween the skills re­quired and skills avail­able in the fu­ture.”

Such self­less and more broadly poignant ini­tia­tives will not only help the busi­ness cap­i­talise on up­com­ing op­por­tu­ni­ties through its ca­pac­ity ex­pan­sion pro­ject, but will con­tinue to as­sist Mozam­bique as a coun­try in its over­all eco­nomic devel­op­ment strate­gies.

Dumper haulage from mine to wash plant

Coal prod­ucts from the wash plant

The Jin­dal dis­pen­sary

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