Indian delegation to visit Mongolia for coking coal discussions

01 Oct 2024 CW Team

An Indian delegation, consisting of senior government officials, will travel to Mongolia next month to discuss the potential import of coking coal from the landlocked country. This initiative aims to diversify sources of raw materials, enhancing the availability of this crucial steel-making component while optimizing production costs.

Steel Secretary Sandeep Poundrik informed PTI, "We are exploring the possibility of importing coking coal from Mongolia. An industry delegation previously visited Mongolia, and now a government delegation will follow next month."

Currently, India relies heavily on a limited number of countries, primarily Australia, for 80-90% of its coking coal needs. Due to the distance, it takes months for cargo ships to deliver the raw material, increasing overall production costs for steel manufacturers.

Importing coking coal from Mongolia, which is geographically closer, will benefit domestic steel producers by improving raw material availability and reducing costs. The government is actively pursuing measures to source coking coal from both Russia and Mongolia. Additionally, state-owned SAIL has already imported coking coal from Russia for steel production.

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