India's Strategic Move to Source Coking Coal from Mongolia

An Indian delegation, including senior government officials, is set to visit Mongolia to discuss the import of coking coal. This initiative aims to diversify raw material sources for steel production, enhance cost efficiency, and reduce dependency on Australia. The government has also been exploring options from Russia.

An Indian delegation, including senior government officials, will travel to Mongolia next month to discuss the importation of coking coal from the landlocked nation.

This strategic move aims to diversify raw material sources, ultimately increasing the availability of this crucial component in steel production and optimizing production costs.

“We are considering the possibility of importing coking coal from Mongolia. An industry delegation has already visited, and a government delegation is scheduled to go next month,” said Steel Secretary Sandeep Poundrik.

India currently depends largely on Australia to meet 80-90% of its coking coal needs. Due to the distance, shipping the materials often takes several months, escalating costs.

Importing from Mongolia, which is geographically closer, will provide cost benefits to domestic steel manufacturers and improve the availability of raw materials.

The government is also exploring other sources, including Russia. State-owned SAIL has already imported coking coal from Russia to produce steel.

(With inputs from agencies.)