JINDAL AFRICA IN THE NEWS

Jindal and BPC sign PPA for Mmamabula 300MW Power Plant

Jindal Energy have won a bid to build a 300 Megawatt coal power generation station and sell power to state owned Botswana Power Corporation (BPC), government announced November last year. 

Jindal will now build, own, operate, and maintain the power plant, which will be supplied by its coal resource from Mmamabula coalfields. The company is in the process of developing a coal mine in Botswana’s south-eastern Mmamabula coalfields.

In a notice to the market last November announcing Jindal as the preferred bidder, Ministry of Minerals & Energy said “the contract is for the design, finance, construction, ownership, operation, maintenance and decommissioning at the end of its economic life, of a 300MW net greenfield coal-fired power plant in Botswana as an Independent Power Producer” 

Jindal will finance construction of the plant which is estimated to cost over P13 billion and recoup its investments from selling electricity to the Botswana Power Corporation (BPC) under commercial terms which were officially signed at Phakalane Golf Estate Hotel on Tuesday. 

Electricity from this multibillion pula power generation plant is expected to flow into the national grid in 2028, however Jindal says it is confident will deliver this landmark project before 2028. 

Giving key note address at the Power Purchase Agreement signing ceremony, Minister of Minerals and Energy Lefoko Maxwell Moagi said approval has already been given to add another 300 Megawatt as the coal resource is abundant in Botswana’s Mmamabula Coal fields. 

“When the feasibility was done, it was done for 600MW but the procurement went for 300MW,” Minister Moagi revealed to local journalists on the side lines of the PPA signing ceremony. 

“Because the procurement had already been done for the 300, we went to Cabinet to seek an additional 300. “This is so that it ties into the procurement that’s already there, so it will go straight to Jindal rather than another procurement process. “This will also then assist in terms of economies of scale, getting things much faster and better for the country.” 

“Our plan is to finish this project by 2026 instead of the agreed 2028,” Jindal Steel and Power’s Chairman Naveen Jindal said at the signing ceremony. 

“There is no reason why Botswana, with all its coal resources, cannot supply the whole region and address the shortages in South Africa. We should explore the possibilities of going beyond the 600MW plant, he said. 

The multi-billion-dollar O P Jindal Group is hitting the ground running to kick starts the long awaited Mmamabula Coal Project. Jindal holds mining license for about 3 billion tonnes of coal in the East Mmamabula Coal Fields. 

The company is planning to carry out initial mining of 4.5 million tonnes per annum of coal and also to undertake related infrastructure works to support the mine and the power plant. 

The Jindal’s Mmamabula Coal Mine will be Botswana’s biggest, just 300 000 tonnes above state owned Morupule which is currently on set to produce 4.2 million tonnes per annum following the commissioning of its Motheo project. 

Morupule Coal Mine –– a unit of Government ‘s Mineral Development Corporation (MDC), however is targeting over 7.6 million tonnes per annum by 2027 as part of its 5-year strategy launched in October last year. 

Botswana Power Corporation Chief Executive Officer Mr David Kgoboko said that by the time of its completion, the Jindal 300MW power plant will increase the country’s total baseload power to 820 Megawatt, inclusive of generation from state owned and BPC run Morupule A and B plants. 

Morupule B, a 600 Megawatt capacity power plant, built at over P10 billion was commissioned in 2012, however has been facing challenges since then, failing to reach nameplate capacity due to technical challenges. 

Currently remedial works are ongoing and the plant is expected to be fully operational in 2026, positioning Botswana on the path of electricity net exportation. 

Source: Weekend Post Botswana 

Jindal Africa: Growing our spirit, The African Way

26 December 2014 

Jindal Africa is working vigorously to entrench and expand its foothold in Africa to the benefit of its holding group and its local stakeholders. 

Growing Our Spirit, the African Way 
Jindal Africa is at the forefront of Botswana’s mining and energy developments, which are carefully aligned with the country’s national goals. The industrial conglomerate, Jindal Steel and Power Limited (JSPL) is a leading global player in the steel, power, mining, coal-to-liquid, oil and gas, as well as infrastructure sectors, employing more than 50,000 people around the world, thus Jindal Africa is a natural fit within the business structures of all the African countries. With a strong presence throughout the country, Jindal Botswana makes substantial contributions to the Batswana economy through employment opportunities and community enlistment. 

The Jindal Botswana office is strategically located in the capital city, Gaborone, while dedicated technical support is available from the neighboring Jindal Africa Johannesburg head office. Jindal Group currently has established a workforce of over 50,000 employees globally and approximately 2,500 within Africa. The parent company and its subsidiaries exhibit a varied portfolio of professional skills in undertaking mining, power, infrastructure, and oil and gas projects accordingly, which Jindal Botswana’s operations currently leverage. To this end, the company is currently involved in numerous exploration and mining operations across five continents while also looking out for and planning projects in the steel, power and related industries. 

Being a corporate native of the emerging economic power of the Indian sub-continent, JSPL came to the realization that its wide and inherent experience in the development of its home market can assist with stimulating a similar rise in Africa. As a result, Jindal Africa – one of the fastest growing and significant parts of the Indian JSPL – now spans throughout South Africa, Mozambique, Botswana, Madagascar, Tanzania, Zambia and Namibia. 

The Mmamabula Project 
In October 2014, Jindal Resources Botswana, a subsidiary of Jindal Steel & Power Limited, was awarded a mining licence in the rich coalfields of Mmamabula. “The Mmamabula East Coalfield is an extension of South Africa’s Waterberg Coalfield, comprising of a total area spanning 312.69 km2 and proven reserve of 2.7 billion tonnes,” says Rajendra Kumar Tiwari, General Manager of Jindal Africa’s Botswana operations. 

Waterberg Coalfield contains approximately 40 percent of South Africa’s coal resources. Located here is also Eskom’s impressive 3,690 MW Matimba power station and Exxaro’s 19 MT PA Grootegeluk coal mine. 

Long Term Vision 
The long term vision for this operation is achieving nine mining complexes, of which six will be underground operations and three opencast complexes. “In a full operational state, the mining complexes will have a capacity of 45 million tons per annum (MTPA). And with the first phase of the project underway, we have begun our license with 4.5 MT PA, with progression to 14.5 MT PA over the next five years.” 

Currently still in the planning phase, Jindal are securing the necessary permits and lease in order to proceed with the project safely and other factors that will contribute to its success and longevity. Initially, the company hope to export 3 MT PA of the first mine (4.5 MTPA), however discussions are ongoing into local marketing for the coal product. 

Economic Benefits 
Jindal’s goals in Botswana are closely linked to the country’s adherence to its Vision 2016 and Millennium Development Goals (MDG). The continent shares many similarities and a shared history with India, which provides an unprecedented opportunity for both rising economic giants to march together into the future, for the mutual economic and social benefit of their respective peoples. The mine promises positive economic benefits by heavily contributing to the GDP and generating employment opportunities. “There are huge benefits for locals as we seek a growing number of workers for the site, who we can teach a range of new skills to,” says Tiwari, adding that in terms of supply, doing business with local vendors is also a priority. 

“Jindal recognizes that Africa is endowed with great mineral wealth and hardworking committed people. Its intent is to pass on its inherent knowledge and experience to the continent by enriching lives, creating job opportunities and adding value. 

“Employment opportunities are still being finalized, but we will strive to source local labor where we can. A lot of our project support is also provided from our central hub – Johannesburg corporate office – until such a stage as we are further developed to employ the necessary manpower to ensure project success,” he says. 

Mining often forms the base of most economies within Africa, and Botswana is no different. Tiwari says that at the moment, coal mining in the country is in a very nascent stage: “There is only one coal mine in the operating stages within Botswana, with Mmamabula soon to change this.” Backed by the strength of the Group’s strict OHSE policies, the coal mine will closely adhere to practices. “This is a critical area of delivery in all projects and Mmamabula is no exception.” 

Landlocked Challenges 
Perhaps the biggest challenge facing Jindal Botswana is the logistical challenges that operating in landlocked Botswana creates. “It is a reoccurring fact that the country requires significant investments in infrastructure developments in terms of transport links by rail and road. These upgrades will allow Botswana to compete on a global scale alongside Indonesia, Australia and other major exporting countries,” comments Tiwari. 

The Next 12 Months 
With governmental discussions ongoing including land leases and various permits that need to be obtained in order to advance project development, environmental clearances for Phase two of the Mmamabula project are also underway. “We are hopeful that these clearances will be obtained in 2015 to allow development to commence on the western portion of the license area accordingly,” cites Tiwari. 

In the meantime, Jindal will continue to provide support to the communities in the surrounding areas as Tiwari emphasizes: “This is done through our pillars of strength in medical provision, education, youth development through sport initiatives, agriculture development projects and enterprise projects that support sustainability to the area once decommissioning of our projects occur.” 

Jindal to Develop Iron Ore Mine in South Africa

9th August 2023 

The mine lies about 70 kilometers (44 miles) from the port of Richards Bay and the ore, which has a grade of about 26 per cent, could be exported for use by Jindal’s steel mills in Oman or India. 

Jindal has announced plans to develop an iron-ore mine in South Africa that will cost around $2 billion. The proposed mine in Melmoth, in the eastern KwaZulu-Natal province, would dwarf recent investments in South Africa’s mining industry. It could produce 32 million tonnes of magnetite ore a year by 2031 after starting production in 2027. 

The mine lies about 70 kilometers (44 miles) from the port of Richards Bay and the ore, which has a grade of about 26%, could be exported for use by Jindal’s steel mills in Oman or India or sold, the company said. 

It expects to get a mining license next year and a processing plant will take two-and-a-half years to construct. It will be the second-biggest operation of its kind in South Africa after Kumba Iron Ore Ltd.’s Sishen. 

Jindal also mines anthracite in South Africa and metallurgical coal in Mozambique. 

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