Coal news and updates

Coking coal demand to touch 170 mt by 2025-26

April 16: With the Indian steel industry expected to reach a capacity of around 300 million tons by 2025-26, coking coal requirements in the country are likely to see a manifold rise to 170 mt by the next 10 years,  according to S S Mohanty, Director (Technical) SAIL.

“The steel industry is now in mission mode to achieve 300 mt by 2025-26 from 81 mt today. Accordingly, coking coal requirement will jump from about 40 mt now to 170 mt by that time,” Mohanty said while speaking at an International Conference on Coal Washery in Delhi.

Besides, the steel industry will also need another 80 mt of thermal coal for power generation and about 40 mt of PCI coal for direct injection to blast furnaces, he said.

Due to growing demand, coking coal imports may go up from 38 mt in 2014-15 to 80 mt in the near future and 130 mt by 2025-26, Mohanty said.

About the steel growth projection, he said, “We believe that 300 mt by 2025-26 will be a reality.”

About ICVL’s Ventures move to acquire coking coal assets abroad, Mohanty said one of the mines acquired in Mozambique has 2.8 billion tons of coking coal reserves and 14 shipments of coal have already been despatched to companies like SAIL and RINL.

Speaking on the occasion, Sandeep Jajodia, CMD, Monnet Ispat & Energy Limited (MIEL), said the steel industry needs increased supply of washed coking coal, but several constraints are delaying washery projects.

The issue of coal quality, he said, has gained further importance after the auction of mines which have made coal and expensive raw material.