CIL’s Coking Coal Production Rises 35% Y-o-Y in FY20

While, FY20 might not be a fruitful year for CIL performance-wise, but the miner has managed to elevate production of coking coal-a key ingredient used in the steel sector.

For years, CIL had been focusing on raising the output of non-coking coal to ensure uninterrupted supplies at the power plants. However, with the plants equipped with sufficient stock, the coal producer had turned its attention towards coking coal mining.

Coking coal production was increased 35% Y-o-Y to 46.25 MnT in FY20 compared with 34.14 MnT in FY19. Incidentally, not only the output level was raised, but its share in overall volume was also improved from 6% to 8%.

In contrast, CIL’s non-coking coal production was assessed 3% lower on the year at 555.89 MnT in FY20.

Subsidiary-wise Coal Production:

Majority of the coal was procured from its two subsidiaries having the most coking coal reserves-BCCL and CCL.

BCCL was the largest coking coal producer with output of 25.79 MnT, rising 6% Y-o-Y from 24.34 MnT in FY19. While, a remarkable growth was noted in CCL’s output which doubled on the year to 20.01 MnT in FY20.

Remaining coal volume was attained from SECL (0.25 MnT), WCL (0.18 MnT) and ECL (0.03 MnT).

With limited reserves of coking coal in the country, it is difficult to cater the surging steel demand domestically. However, the government has implemented numerous efforts to minimize the deficit, including commissioning of new washeries which aims to improve quality of the indigenous coking coal.