Vulcan International is positioning its Moatize operation in Mozambique as a test case for fully electrified mining, committing €140.6 million to overhaul energy systems and reduce reliance on imported diesel.
The investment centres on a 300 megawatt power plant designed to supply mining, processing and rail operations, while enabling surplus electricity to be fed into the national grid. Chief Executive Mukesh Kumar said the project is as much about efficiency as it is about energy security. “We are building capacity that allows us to power operations, reduce fuel dependency and contribute excess energy back into the grid,” noted Kumar.
Mozambique currently relies heavily on imported diesel, with the company alone spending around $150 million annually. Electrification is expected to significantly reduce those costs while lowering emissions and improving operational reliability. Minister of Mineral Resources and Energy Estevão Pale said the project reflects a shift toward more efficient mining models. He said, “Reducing fuel consumption lowers environmental costs and increases economic value for the country while improving productivity.”
Beyond cost savings, the initiative is expected to cut particulate emissions and improve environmental conditions for nearby communities, located in close proximity to the mine. The move comes as mining companies globally explore electrification as a pathway to decarbonisation and cost control. For Vulcan, part of India’s Jindal Group, the Moatize project positions the company at the forefront of that transition in Africa.
