India seeks coal home and away

INDIA is looking both domestically and overseas for coking coal as it desperately tries to meet steel maker demand, this month buying 300,000 tonnes in a BHPB spot deal and this week announcing it’s steel and coal ministries had joined together in an effort to produce an additional two million tonnes a year from Coal India mines.
India seeks coal home and away India seeks coal home and away India seeks coal home and away India seeks coal home and away India seeks coal home and away

Courtesy Coal India

Angie Tomlinson

State-owned Steel Authority of India (SAIL) and Visag are reportedly looking for up to one million tonnes in additional coking coal supplies this year. This follows a spot deal with BHPB, which McCloskey’s said was priced at around a top of US$105/t.

With reports India is still looking for more, Xstrata has scheduled meetings in the country during October. McCloskey reported India was also looking at suppliers in China and Russia.

While international deals are brokered, the country is also looking to boost domestic production by two million tonnes a year to avoid international high coking coal prices.

Financial Express reported domestic coking coal would by cheaper than the imported variety by Rs 2,000 (US$44) per tonne and Rs 6,000 (US$131) per tonne would be saved on foreign exchange.

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