Developing a mine in the Songa coal basin

Jindal in Mozambique

Growing our spirit the African way Manoj Gupta

Vice President & Country Head –JSPL Mozambique

Copyright © 2013 Jindal Africa (Pty) Ltd.

Introducing JSPL The Jindal Group was founded in 1952 -is one of India's major steel producers with a significant presence in sectors like Mining, Power Generation and Infrastructure. -With an annual turnover of over US$ 3.5 billion, JSPL is a part of the US$ 18 billion diversified O. P. Jindal Group and is consistently tapping new opportunities by increasing production capacity, diversifying investments, and leveraging its core capabilities to venture into new businesses.

Introducing JSPL (Cont.) JSPL operates the largest coal - based sponge iron plant in the world and has an installed capacity of 3 MTPA of steel at Raigarh . JSPL has recently been rated as the second highest value creator in the world by Boston Consulting Group; 11th fastest growing company in India by Business World; - included in one of the Fab 50 Companies by Forbes Asia, 2009 and 2010; one of the Best Blue Chip companies as well as the Highest Wealth Creator by the Dalal Street Journal.

Jindal Group Around the world

We started as a steel manufacturing company, enhanced our position as a major steel producer and diversified into various other sectors such as Mining, Power Generation & Trading, Petroleum, Cement and Infrastructure.

Presence in: -Asia -Europe -Africa -Australia

JINDAL IN AFRICA

South Africa, Mozambique,Tanzania, Madagascar,Zambia,Botswana, Namibia.

Jindal Africa is a part of Indian multinational conglomerate Jindal Steel and Power Limited (JSPL), which in turn is part of US$18 billion, diversified O.P. Jindal Group. This industrial conglomerate is a leading player globally in the steel, power, mining, coal to liquid, oil & gas, and infrastructure sectors.

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.

Jindal in Mozambique


Copyright © 2012 Jindal Africa.

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Jindal First coal exporter from south of Zambezi

(Concession no 3605 C – South of Zambezi)

Copyright © 2013 Jindal Africa (Pty) Ltd. 8

Distance Mine to Port: 685 Km


Jindal coal Project at Chirodzi


The coal project timeline for Jindal in Mozambique

The Journey begin- Jindal entry to Mozambique

J

JSPL acquired Exploration Licenses

Completion of Exploration & establish project viability

In December JSPL & Mozambique signed Chirodzi Mining

concession contract

2011

In Feb, JSPL obtained a Mining rights with production planned

for 2012/13

JSPL starts the building of coal Mine

2012

In September Mining Excavation and coal stocking started

Commissioning of wash plant and first production

2009

2009

2010

2011

2011

2010

2012

2012

2013 -Ship

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Project Overview

Mining method – Open cast Ramp up period ( 3-5 yrs starting 2013) Products – coking coal & thermal coal Mining ongoing with two pits

South part of Zambezi - First Coal

Major milestones achieved Coal Annual Production (ROM) – 10 million T with an option of going to 20 Mtpa




• Opencast Mine for a capacity of 3 Mtpa developed in Phase I

• Employment created > 1500 workers

• First coal shipment made in Q1 2013

• Built Infrastructure in south of Zambezi , Moatize & Beira

• Acquired rolling stocks

Update


Project Development – Mine office , GH & Clinic


Project Development - Mine accommodations


Project Development – Coal Processing Plant


Project development

Substation

Project development


Copyright © 2013Jindal Africa (Pty) Ltd. 19

Environmental Licenses

Project Logistics


Overcoming infrastrutural challenges



Coal shipment made

23 Copyright © 2013 Jindal Africa (Pty) Ltd.

Coal stock near Moatize rail


Loading Platform at Moatize


Capac. estocagem: 200.000 ton Transportadores: 2x750t/h

Jindal Coal Unloading Platform at Munahava- Beira


Access

Road

Coal Siding

Quay 9

Administrative

Area

Road Access to Port of Beira


The need for additional logistic infrastructure at Beira port


Sailing Route for the Feeder Vessel

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Options to access the Indian Ocean from Mine


Our Strategy to Minimizate the Logistic Challenges Road & Rail Capacity: upto 1 Mtpa dec/13 Rolling Stocks: 5 locomotivas + 100 wagons 63 t Skips : 15 Equipments :

Port Port of Beira: Quay # 9 (TCC9) Capacity: 1 Mtpa Contract with Cornelder: for first year of operation


Project Phasing

< 3 MPTA 3 – 5 MTPA 5 – 10 MTPA 10+ MTPA

Cornelder 1 berth 1 berth 2 berths

Direct shipping 2 ship loaders 2 ship loaders 4 ship loaders

2 vessels 3 vessels 3 vessels

2 stacker / reclaimers



1 tippler 1 tippler 2 tipplers

Additional stockpile

Longer stockpiles

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Social Projects


Education

Health

Infrastructure

Overseas Training

Ambulance Mobile Clinic Hospital

Schools

Water supply to communities

Access roads to villages

Hospital renovations

Chitima Water Project


Social Investment – To improve communities development


Social Investment

Environmental Friendly

Trees Plantation

2 nos Truck mounted Tree Transplanter Machine at site

Improved technology without damaging the existing trees

Towards Production and Export

Production of Coal

Production Plan is for 10 milion tons of capacity(over 5 years), and with infraestruture availability we could go up to 20 milion tons capacity. (Thermal Coal and Cooking Coal)

Year 2013, the company plans to produce and ship about 1(one) million ton of coking and thermal coal.

Exporting the Coal to other Markets

We exported over 100,000 tons of coal via Port of Beira to the Asian continent – 1Mtpa till Dec13

We expect to double export levels as soon as we improve coal transportation facilities. It is certainly the intention of the company that the desired levels of export of high quality coal to be made later this year.

Way Forward

Mozambique established as world’s new source of metallurgical coal in thick seams and considered potentially to have one of the largest coal reserves in Africa – over 30 billion ton.

• Power Plant set up – targeted to be completed in next 22 months

• To support the GoM initiatives and to participate in joint private developments on feasible and sustainable infrastructure developments under the scope of the socio economical development of the country

• Building capacity in Mozambique


Conclusion Despite the issue of infrastructure bottlenecks, Mozambique remains a long term solution to the coking coal market with export potential of > 15 Mt of coking coal by 2015

Infrastructure lags and opportunity for Infrastructure build-up with collaboration of government, investors and independent companies working together.

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Key to success …… Infrastructure build-up can happen quickly with collaboration of government, investors and miners working together without changing priorities and plan-Open access approach

The public sector and private sector need to work in conjunction to build A better Mozambique for everyone. !


Muito Obrigado PELA ATENÇÃO!


Developing a mine in the Songa coal basin

Business

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