Coal news and updates

Jaiprakash in market to procure 0.5 mt of imported coal

October 8: The Jaiprakash Group is in the market to procure around 0.5 million tons (mt) of imported coal for delivery between October and December, industry sources said.

The company is believed to be looking at buying off-spec South African origin coal with specification ranging between 5,500 Kcal/kg NAR and 6,000 Kcal/kg NAR, the sources added.

The recent sharp fall in South African coal prices has prompted many a cement-maker in India to look for imported fuel, they said, adding, recently UltraTech too floated an enquiry for one parcel of Panamax vessel.

According to information available with ICMW, Jaiprakash Group had floated another enquiry in May to procure 0.45 mt of South African origin coal for laycan loading in June/July.

The Jaiprakash Group needs around 4 mt of coal annually for its clinker plants and captive power plants. With the gradual decline in availability of domestic coal in recent days, companies’ imported coal requirement is likely to rise, industry sources feel.

Of the total requirement of coal, Jaiprakash had tapering linkage of 2 mt coal, but after the delay in development of captive blocks and subsequent de-allocation of all blocks, including Mandla North, the company will depend heavily on traders, e-auction and washery rejects to meet its coal demand, an official from the company had told ICMW earlier.

However, with the company looking to sell a number of plants in order to reduce the debt burden, its overall coal requirement may decline in the coming days, industry sources said.