A related power purchase agreement is expected to be signed by the end of this year with the southern African country.
Jindal Africa CEO Ashish Kumar was cited by Reuters as saying: "We can start building immediately after commercial agreement; it’s a 30-month project for the 150MW plant."
Within 18 months of surge in the coal commodity price worldwide, Jindal would expand production from current the capacity of around three million tons per annum (MTPA) to 10 million MTPA at its Chirodzi coal mine in Mozambique.
With a 25-year operational life, the open cast coal mine is estimated to have 700 million tons of reserve. The mine exported its first coal shipment in the first quarter of 2013.
Jindal also has mining interests in South Africa, Namibia, Botswana and Mauritania. The company seeks to expand its business in steel, energy and cement industry in Africa.
