India demands Australian coal

INDIA’S National Aluminium Company plans to import 130,000 tonnes of Indonesian and Australian coal in a bid to get its production back online.

Vivienne Ryan

A NALCO company source told news agency Reuters it expected the coal imports by the end of the month, which should ease its coal shortage.

“The coal situation has improved for us, but it is still critical,” the source said.

Last month the Indian company had to halt its production at one refinery due to a coal shortage.

Domestic coal supplies have been affected by adverse weather and are only expected to improve after the monsoon rains end in September.

The demand for Indonesian coal comes at a tricky time as Indonesian officials have asked six coal producers to halt their exports.

According to another report by Reuters the Indonesian Energy and Mines Ministry has asked coal producers to stop exports and renegotiate prices using the Indonesian Coal Price Index as the benchmark.