Jindal Steel and Power Ltd (JSPL) is set to start importing coal from its Mozambique mine, where production will begin this year. The billionaire Naveen Jindal-led company plans to import about 500,000 tonnes of coking coal from the African nation in 2013.
Coking coal is one of the main ingredients for producing steel. The company currently imports about 1 million tonnes (mt) of coal to meet the demand of its steel plants, Sushil Maroo, JSPL director and group chief financial officer, told Business Standard.
Besides, the company will invest $1 billion (Rs 5,370 crore) in its overseas business over the next two years. JSPL will spend on acquiring more mines and expanding its existing business outside the country.
International operations currently contribute 10 per cent to the company's revenues and it expects the number to rise significantly in the coming years. “We are looking for acquisitions in Africa now. We have some proposals, but it will take some time before anything gets finalised. We will invest further in Oman and might set up our own steel plants overseas,” Maroo added.
The plant in Mozambique will produce coking coal as well as thermal coal, which is suitable for power plants. The company has also entered into a framework agreement with the energy ministry of Mozambique to set up a 2,640-Megawatt thermal power plant in the Tete region of the African country and studies are under way to confirm the feasibility of the project, according to the company’s website.
JSPL on Thursday secured an order worth Rs 500 crore from PowerGrid Corp of India Ltd (PGCIL) for supply of 80,000 tonnes of steel, which will be used in setting up two transmission towers in south India.
The company will supply rolled back angle sections for tower packages associated with 765-Kv Vamgiri-Khammam-Hyderabad transmission line and 765-Kv Nagapattinam-Salem-Madhugiri transmission line.
JSPL currently has a total steel production capacity of three mtpa at its Raigarh plant in Chhattisgarh.
Besides, it also has a 600,000-tonne wire rod mill and a 1-mtpa bar mill at Patratu, Jharkhand, and a plate mill to produce up to 5-metre wide plates at Angul, Odisha. The company has plans to increase its steel capacity to 20 mtpa by 2020.
After they together paid Rs 12 lakh to settle charges related to alleged delay in amending insider trading norms