Indian group Jindal Steel and Power Ltd (JSPL) on 1 October resumed coal mining in Mozambique in view of the increase in ore prices on international markets, particularly coking coal, said the group’s chief executive.
Quoted by the Indian media, Ravi Uppal said the subsidiary JSPL Mozambique Minerais had resumed activity in the Chirodzi mine in Tete province, in view of the fact that the price of coking or metallurgical coal has risen by over 150% since August.
“First rate coking coal was around US$85 a tonne in August and is currently being sold at US$215 a tonne,” said Ravi Uppal, who added steel prices would also increase as coking coal accounts for one fifth of the cost of steel production.
The JSPL group, which is engaged in mining operations, steel and electricity production and construction and has been selling some assets to reduce liabilities currently estimated at US$6 billion, expects the increase in the sale price of coking coal will help improve the accounts of mining activity in the second half.
Operations at the group’s coal mine in Mozambique, which was acquired in 2011, had been suspended earlier this year due to the continued decline in the price of both coking and thermal coal, which forced similar actions by other mining groups. (macauhub)