Vulcan invests €140.6M for Africa’s first fully electric mine in Mozambique

Mining operator Vulcan has invested approximately 140.6 million euros ($160 million) in the electrification of the Moatize mine in central Mozambique. The project will generate up to 300 megawatts of power, drastically cutting diesel consumption and reducing environmental impacts. “We are installing a 300-megawatt power plant: roughly 90 megawatts will power our mining operations, 30 megawatts will be dedicated to processing, and about 100 megawatts will electrify our rail corridor,” explained Mukesh Kumar, CEO of the mining company operating coal concessions in Tete province.

Speaking during the equipment inauguration at the Moatize mine, Kumar stated that the project will allow the company to achieve energy self-sufficiency while feeding surplus electricity back into Mozambique’s national grid (Rede Eléctrica Nacional). The operator mines a 250-square-kilometer concession in Moatize, where the nearest residential community sits just 350 meters from operations. “Our ultimate objective is to enhance and scale up the national economy.

Currently, we spend roughly $150 million [€131.8 million] solely on diesel imports,” Kumar noted. He highlighted that the project yields multiple operational and social benefits: eliminating direct emissions from heavy machinery, achieving full equipment electrification, and utilizing thermal power plant ash byproducts to manufacture green cement—enabling Vulcan to become Africa’s first fully electric mine. Mozambique’s Minister of Mineral Resources and Energy, Estevão Pale, noted that the initiative represents a decisive step toward sustainable, high-efficiency mining.

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He emphasized the reduction in diesel imports, lower particulate dust emissions, and overall environmental improvements for surrounding communities. “First is the reduction of fuel consumption. Mozambique does not yet refine its own diesel, so making this operation more efficient lowers environmental costs and brings greater economic value to the country, the company, and Mozambican citizens by raising mine productivity,” Pale stated.

He added that electrifying operations will significantly curb coal dust emissions, improving public health and quality of life in neighboring settlements. “We expect a significant improvement in environmental quality and living conditions for communities living adjacent to the concession,” Pale concluded. The Indian private firm is part of the Jindal Group, valued at $18 billion (€15.5 billion), which previously established a footprint in Mozambique through the Chirodzi coal mine, also in Tete province.

Over the past three years, Vulcan has produced over 35 million metric tons of coal annually at Moatize, following its April 2022 acquisition of the operation from Brazilian mining giant Vale for more than $270 million (€233 million). Vale operated in Mozambique for 15 years, managing the Moatize pit and the 912-kilometer rail line along the Nacala Logistics Corridor (CLN) for coal export—an infrastructure network also transferred to Vulcan.

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