Indian steel makers are likely to see domestic supply of Coking Coal enhancing in the country as the government will take initiatives in this regard.
Piyush Goyal, the Union Minister for Power, Coal and Mines; has said that the government was considering processing higher coal grades, produced in domestic mines, that could be used as alternatives to Coking Coal by the country’s steel makers. This could make 20 MnT of coal available for the country’s steel makers in the next three to four years, according to the minister.
The minister also revealed that he had understood that there are some grades of coal, if washed, could be used as alternatives to Coking Coal.
Due to the wide demand and supply gap in the country, around 80% of Coking Coal requirement in the country is met through imports. In FY16, 44 MnT of Coking Coal was imported into India, according to the import database maintained by CoalMint Research.
In the meantime, Coal India Limited is looking for acquiring Coking Coal assets in foreign countries.
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