After renewed domestic growth, JSPL is now reaching out globally using its expertise through diversified investment strategies and gaining a foothold in high growth markets. The company not only continues to work concertedly to expand in its core areas but is also diversifying into new businesses.
JSPL recognises that Africa is endowed with great mineral wealth and hardworking and eager-to-learn people. It is working vigorously to entrench and expand its foothold in Africa to the benefit of its holding group and its local stakeholders. To this end, the company is currently involved in numerous exploration and mining operations across six continents, while also bidding for and planning projects in the steel, power and related industries.
JSPL first ventured into the continent when it acquired diamond exploration licenses in the Democratic Republic of Congo in 2005. Since then, JSPL, as Jindal Africa, has established a significant footprint on the continent through operations in South Africa, Mozambique, Madagascar, Tanzania, and Zambia. Africa has also facilitated JSPL’s entry into base metals copper exploration being performed in Zambia and Tanzania. JSPL’s intent is to pass on the inherent knowledge and experience to the continent by enriching lives, creating job opportunities and adding value.
JSPL’s African headquarters are based in Johannesburg from where it oversees the regional operations and expansion plans. Its operational activities in the country include the Kiepersol Colliery, outside the town of Piet Retief in Mpumalanga province. The coal mine is producing about 1.2 million tonnes per annum of high quality Anthracite which is sold both domestically and internationally. There are plans to ramp up the capacity to 2 million tonnes per annum, after which JSPL will become the largest producer of Anthracite in South Africa. JSPL has also acquired a number of coal and iron ore concessions in which exploration and development work is in progress.
In Mozambique, JSPL is one of the three major companies to have a mining right in the coal-rich Moatize region. JSPL plans to set up a 10 million tonnes per annum coal mining operations which will produce semi-hard grade coking coal suitable for steel plants as well as thermal coal suitable for power plants. The development activities are in full flow, and the coal production will start by middle of 2012. JSPL has also entered into a framework agreement with the Ministry of Energy to set up a 2640 MW thermal power plant in the Tete region. Studies are underway to confirm the feasibility of this project.
In Madagascar, JSPL is involved in limestone exploration projects. The company currently boasts limestone reserves of over 1 billion tonnes. These reserves have both steel and cement grade material. The company is looking to forward integrate by building a cement plant. To facilitate the logistics, JSPL also has plans to develop a port at Toliara.
Zambia represents JSPL’s foray into copper mining and production. JSPL has acquired two high grade copper prospecting licenses in the Mumbwa are. Currently exploration work is in progress to confirm the quality and quantity of the ore, after which copper mining shall commence. JSPL has plans to set up a copper smelter near Kitwe and make Zambia its hub of copper operations.
In Tanzania, JSPL has acquired a small scale mining license for a copper concession in the Dodoma region in central Tanzania. JSPL has also been allocated a prospecting right for copper in the mineral rich Kilimanjaro area. Negotiations are also on for buying limestone concessions near the Mtwara port based on which a 2 million tonnes per annum cement plant will be set up.
Oman (Middle East)
Through its 100% subsidiary Jindal Steel & Power (Mauritius) Ltd., Mauritius (JSPLM), JSPL has acquired Shadeed Iron & Steel Co. LLC (Shadeed) in Oman. There is a strong demand for steel in the Middle East and North African countries, with a supply shortfall estimated to be more than 15 million tones. Jindal Shadeed has installed a 1.5 MTPA gas-based Hot Briquetted Iron (HBI) plant with an investment of US$ 500 million and started commercial production from the Oman plant five months ahead of schedule in December, 2010.
Through its 100% subsidiary, Jindal Steel & Power (Australia) Pty Ltd., JSPL has secured six Exploration Permits for Coal (EPC) in Queensland. These exploration tenements are spread over a large area of more than 1300 sq kms with a potential of exploring coking/PCI and thermal coal. They are also strategically located in three major coal bearing areas of Queensland i.e. Bowen, Suarat and Maryborough basins that are all well connected through rail to strategic ports. JSPL has already started the initial exploration activities on the said coal projects.
The company has also signed an option agreement with Fitzroy Port terminal that has a capacity of handling 5 million tonnes of coal. The port is close to the Blackwater rail line as well as Rockhampton town.
Additionally, JSPL is also looking for investment in advance coal projects in Australia. Through an open offer for the ASX listed coal exploration company, Rockland Richfield Ltd (RCI), JSPL has increased its share holding to 27.29%. RCI has three advanced coal exploration projects with more than 750 MT of JORC compliant coal resources (inferred/indicated) in Queensland with a potential for coking/soft coal.
Jindal Steel and Power Ltd. is also exploring steel production and mining projects in Brazil, Indonesia and Mongolia.