JINDAL WILL NOT PULL OUT OF MOZAMBIQUE

The Indian mining company Jindal intends to remain in Mozambique, despite the current losses made in its coal mining operations in the western province of Tete.Like every other coal mining company, Jindal is suffering from the collapse in the world market price of coal. The company’s general manager, Chandra Singh, cited by the independent television channel STV, said it was reacting by cutting out sub-contractors.“There has been s sharp drop in prices on the international coal market”, said Singh. “Despite this, Jindal is committed to remaining in the Mozambican market and continuing to produce”.“We have been taking measures to rationalise operational and production costs”, he added. “Jindal has terminated contracts with sub-contracted companies, and is now doing those operations itself. Thus has allowed us to rationalize costs. These are some of the measures we are taking to make our operation more efficient”.Singh admitted that the forecast for coal exports in the immediate future is not bright, since both the United States and China plan to reduce their coal imports. The reduction of carbon emissions to which both these countries are committed implies the closure of several coal fired power stations.Jindal is not committed to exporting all the coal it mines. It is one of the companies which intends to build a power station at the mouth of the mine, which will consume the coal that is of too law quality for export. The first phase of the Jindal power station is expected to produce 300 megawatts of electricity.