Vulcan starts $160m project to electrify Africa's biggest coal mine

Moatize's diesel-powered fleet and rail corridor are being converted to run on a new 300MW power system

24 July 20262 min read

Vulcan starts $160m project to electrify Africa's biggest coal mine

Vulcan, the Mozambican coal producer controlled by India's Jindal Group, announced on 24 July 2026 that it was investing €140.6m (about $160m) to electrify its Moatize coal operation in Tete province, a project it describes as building Africa's first fully electric coal mine.

Diesel dependence, and its cost

Vulcan chief executive Mukesh Kumar said the company currently spends roughly $150m a year on diesel imports to run Moatize's mining, processing and rail operations. The new system is designed to generate 300 megawatts of power in total, split roughly between 90MW for mining equipment, 30MW for coal processing, and 100MW to electrify the rail corridor that carries coal to port, part of the 912km Nacala Logistics Corridor.

A large and growing operation

Vulcan bought the Moatize mines from Brazil's Vale in April 2022 for more than $270m, and the operation now produces over 35 million tonnes of coal a year across its combined thermal and metallurgical output, on a roughly 250 sq km concession that sits close to residential communities. Kumar said the electrification drive was ultimately about strengthening Mozambique's national economy, not just cutting Vulcan's own costs, and the plan also includes plans to turn ash byproducts from the associated thermal plant into green cement.

Part of a bigger investment push

The electrification project follows a run of recognition for Vulcan at Mozambique's FACIM trade fair, where it was named the country's largest exporter to India and its largest investor in the energy sector. Mozambique's government has forecast record national coal production of more than 22 million tonnes in 2026, an increase of roughly 15% on the prior year's estimate, with Moatize's output central to that growth.

Why it matters

Cutting diesel use at Moatize would materially lower Vulcan's operating costs and carbon footprint, insulating the mine from oil-price volatility that has periodically squeezed margins across the region's coal industry. For Mozambique, a successful rollout would demonstrate that large-scale mining electrification is feasible even in a market still building out its power grid, potentially setting a template other coal and metals producers in the region could follow as they face similar pressure to decarbonise energy-intensive operations.