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Released May 05, 2014 | JOHANNESBURG
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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Jindal Steel and Power (BSE:532286) (JSPL) (New Delhi, India) is aggressively expanding its interests in the Middle East and Africa.
The company has developed interests in Africa during the past five years after acquiring the mothballed Kiepersol coal mine in the South African province of Kwa-Zulu Natal in 2005. The company has continued to look for coal and iron-ore mine opportunities, in pursuing its target of manufacturing 9.5 million tons of steel, generating 11,140 megawatts (MW) of power and manufacturing 4.5 million tons of steel pellets annually by 2020.
In establishing South Africa as the company's gateway to the continent, Ravi Uppal, JSPL's managing director and group chief executive officer, said that the company's core competencies are in sectors central to the needs of developing states, such a South Africa.
"This is why we feel we can share our expertise with the continent," Uppal said. "We've spent the last five years determining Africa's needs, and now the stage is set for us to take the next frog leap and expand our footprint. We also know the aspirations of developing countries and that we need to meet the needs of the have-nots. Our business model attests to this."
Jindal Africa is developing a 20 million-ton-per-year, open-cast iron-ore mine at Melmoth in Kwa-Zulu Natal, which has the potential to be a magnetite resource of several billion tons.
The Chirdozi coal mine project, in the Moatize district of Mozambique, was initiated in 2009 with a proven reserve of 700 million tons and an expected life of 25 years.
Another coal project that is being developed in Botswana is the Mmamabula coal field, with claimed coal reserves of 2.7 billion tons. The coal field is an extension of South Africa's Waterberg coal field. The company also has been shortlisted in Botswana as an independent power producer (IPP) for South Africa's power utility, Eskom.
Also in the region, JPSL has acquired licenses and started exploration for iron-ore and manganese on tenements in Namibia, with potential consolidated iron-ore reserves of several million tons.
"We are still driving due diligence and it will be a while before this operation becomes a reality, but we are confident of a high grade iron ore product suitable for steelmaking," Jindal Africa Office Head Ashish Kumar said.
The company also is exploring unspecified opportunities in Cameroon, Gabon, Madagascar, Tanzania, Zambia, Liberia, Senegal, Mauritania and Sierra Leone.
In the Middle East, JSPL has begun commissioning a 2 million-ton-per-year integrated steel plant in Sohar, Oman. Jindal Shadeed Iron and Steel runs the $800 million plant. The company already had acquired Shadeed Iron and Steel's 1.5 million-ton-per-year, gas-based hot-briquetted iron (HBI) plant in 2010 for $500 million. To forward integration, it has set up a 1.8 million-ton-per-year direct reduced iron (DRI) plant, which has been operating for two years. The JSPL plant will serve local and regional demand.
A major increase in steel demand is being driven by construction activity.
For related information, see March 19, 2013, article - Jindal Steel and Power Invests $4.4 Billion in 7 Million-Ton Expansion.
View Project Report - 300066434 300076219 300076262 300147671 300147691
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The company has developed interests in Africa during the past five years after acquiring the mothballed Kiepersol coal mine in the South African province of Kwa-Zulu Natal in 2005. The company has continued to look for coal and iron-ore mine opportunities, in pursuing its target of manufacturing 9.5 million tons of steel, generating 11,140 megawatts (MW) of power and manufacturing 4.5 million tons of steel pellets annually by 2020.
In establishing South Africa as the company's gateway to the continent, Ravi Uppal, JSPL's managing director and group chief executive officer, said that the company's core competencies are in sectors central to the needs of developing states, such a South Africa.
"This is why we feel we can share our expertise with the continent," Uppal said. "We've spent the last five years determining Africa's needs, and now the stage is set for us to take the next frog leap and expand our footprint. We also know the aspirations of developing countries and that we need to meet the needs of the have-nots. Our business model attests to this."
Jindal Africa is developing a 20 million-ton-per-year, open-cast iron-ore mine at Melmoth in Kwa-Zulu Natal, which has the potential to be a magnetite resource of several billion tons.
The Chirdozi coal mine project, in the Moatize district of Mozambique, was initiated in 2009 with a proven reserve of 700 million tons and an expected life of 25 years.
Another coal project that is being developed in Botswana is the Mmamabula coal field, with claimed coal reserves of 2.7 billion tons. The coal field is an extension of South Africa's Waterberg coal field. The company also has been shortlisted in Botswana as an independent power producer (IPP) for South Africa's power utility, Eskom.
Also in the region, JPSL has acquired licenses and started exploration for iron-ore and manganese on tenements in Namibia, with potential consolidated iron-ore reserves of several million tons.
"We are still driving due diligence and it will be a while before this operation becomes a reality, but we are confident of a high grade iron ore product suitable for steelmaking," Jindal Africa Office Head Ashish Kumar said.
The company also is exploring unspecified opportunities in Cameroon, Gabon, Madagascar, Tanzania, Zambia, Liberia, Senegal, Mauritania and Sierra Leone.
In the Middle East, JSPL has begun commissioning a 2 million-ton-per-year integrated steel plant in Sohar, Oman. Jindal Shadeed Iron and Steel runs the $800 million plant. The company already had acquired Shadeed Iron and Steel's 1.5 million-ton-per-year, gas-based hot-briquetted iron (HBI) plant in 2010 for $500 million. To forward integration, it has set up a 1.8 million-ton-per-year direct reduced iron (DRI) plant, which has been operating for two years. The JSPL plant will serve local and regional demand.
A major increase in steel demand is being driven by construction activity.
For related information, see March 19, 2013, article - Jindal Steel and Power Invests $4.4 Billion in 7 Million-Ton Expansion.
View Project Report - 300066434 300076219 300076262 300147671 300147691
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
