India considers importing Mongolian coking coal via Russia
COAL & MINING

India considers importing Mongolian coking coal via Russia

India is exploring options to import regular supplies of Mongolian coking coal through Russia, aiming to reduce its dependence on transit via China, according to a senior government official. This move comes as New Delhi seeks to stabilize its supply chains amid last year's volatility in Australian coking coal supplies.

Indian steel mills, the second-largest producers of crude steel globally, have faced challenges with inconsistent Australian coal. As a result, the government has sent delegations to Mongolia to diversify its coking coal sources. Despite the longer transit route through Russia, Indian steel companies are now considering this option, as highlighted by the anonymous official due to the sensitive nature of the discussions.

Concerns about strategic sourcing via China have prompted this shift, especially following tensions between India and China, which escalated after a military confrontation in June 2020 along their disputed Himalayan border. While some supplies have reached India through China, authorities believe it is essential to avoid complete reliance on Beijing for consistent coking coal imports from Mongolia.

Mongolia, rich in resources yet landlocked, offers high-grade coking coal at approximately $50 per metric ton less than Australian coal. Indian steel companies consume about 70 million metric tons of coking coal annually, with 85% sourced from imports. Historically, Australia has supplied more than half of these imports, supplemented by coal from Russia, the United States, and other nations.

In the first half of the current fiscal year, India imported 29.4 million metric tons of coking coal, marking a nearly 2% increase from the previous year, according to commodities consultancy BigMint.

India is exploring options to import regular supplies of Mongolian coking coal through Russia, aiming to reduce its dependence on transit via China, according to a senior government official. This move comes as New Delhi seeks to stabilize its supply chains amid last year's volatility in Australian coking coal supplies. Indian steel mills, the second-largest producers of crude steel globally, have faced challenges with inconsistent Australian coal. As a result, the government has sent delegations to Mongolia to diversify its coking coal sources. Despite the longer transit route through Russia, Indian steel companies are now considering this option, as highlighted by the anonymous official due to the sensitive nature of the discussions. Concerns about strategic sourcing via China have prompted this shift, especially following tensions between India and China, which escalated after a military confrontation in June 2020 along their disputed Himalayan border. While some supplies have reached India through China, authorities believe it is essential to avoid complete reliance on Beijing for consistent coking coal imports from Mongolia. Mongolia, rich in resources yet landlocked, offers high-grade coking coal at approximately $50 per metric ton less than Australian coal. Indian steel companies consume about 70 million metric tons of coking coal annually, with 85% sourced from imports. Historically, Australia has supplied more than half of these imports, supplemented by coal from Russia, the United States, and other nations. In the first half of the current fiscal year, India imported 29.4 million metric tons of coking coal, marking a nearly 2% increase from the previous year, according to commodities consultancy BigMint.

Next Story
Resources

KBL Launches Smart Skid Mounted Fire Pump Set

Kirloskar Brothers (KBL) has launched its Smart Skid Mounted Fire Pump Set, an integrated fire protection solution designed to improve operational efficiency, remote monitoring and installation flexibility. The system was inaugurated by Ms Madhuritai Misal, Hon. Minister of State for Urban Development, Government of Maharashtra.The Smart Skid Mounted Fire Pump Set is a factory-tested, pre-packaged solution that combines FM/UL-certified motor and engine pump sets with IoT-enabled remote monitoring. Designed to deliver a flow rate of 170 m³/hr at a head of 100 metres, the system aims to provide..

Next Story
Real Estate

Senior Living Shifts Beyond Retirement Housing

Senior living in India is increasingly being positioned as a lifestyle-driven housing segment rather than conventional retirement accommodation. Across projects in Bengaluru, Pune and the NCR, developers are focusing on wellness ecosystems, assisted independence and active ageing, reflecting changing perceptions of later life among urban affluent buyers.The shift is being driven by financially secure seniors seeking socially engaged and professionally managed communities instead of ageing in large family homes. Developers are also moving away from standalone retirement campuses, particularly i..

Next Story
Products

Antica Ceramica Launches Heritage-Inspired Terracotta Tiles

Antica Ceramica has launched a new terracotta tile collection inspired by India’s architectural heritage and designed for contemporary interiors and exteriors. The range combines handcrafted aesthetics with modern functionality, bringing warmth, texture and cultural character to residential and hospitality spaces.Drawing inspiration from traditional courtyards, verandahs and heritage homes, the collection features terracotta tones, handcrafted motifs and customisable patterns aimed at transforming flooring and surfaces into design elements. The launch reflects growing demand for natural mate..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->