Coal news and updates

Western Uttar Pradesh’ brick kiln-makers start using US coal

June 6: Taking a cue from the example set by brick kiln-makers in Punjab, now brick manufacturers in western Uttar Pradesh, who, so far, used Meghalaya coal, too have started using US-origin coal, industry sources said.

The brick kiln-makers in western Uttar Pradesh used to buy Meghalaya coal because of its high calorific value and high sulphur content and also because of the fact that the price of such coal on per kilo calorie basis was lower despite higher transportation costs.

“But recent steps by the government has significantly reduced the availability of Meghalaya coal, prompting western Uttar Pradesh-based brick kiln-makers to look at alternative sources,” they said.

Sources claimed that rat-hole coal mining in Meghalaya has been reduced to a great extent. Actually, many people in Meghalaya indulge in coal mining as the mineral is found almost on the surface with a little bit of digging. And, contrary to the law prevailing across entire India, the local law in Meghalaya allows a person owning the surface land to dig such coal and sell the same in the market.

It is estimated that 7-8 million tons of coal is mined in Meghalaya and is directly sold by land owners to consumers and a majority of such coal is sold in the extreme northern part of India.

In search for an alternative fuel resource, in the aftermath of the restrictions imposed on coal mining in Meghalaya, the brick-makers in western Uttar Pradesh found that their counterparts in Punjab were already using US steam coal for nearly last three years and were getting good results despite paying truck transportation costs from the ports of Mundra/Kandla/Navlakhi.

“In recent months, many brick kiln-makers in areas like Hardoi and Rampur etc have purchased US steam coal on a trial basis. If they find it economically viable, they will definitely start using more such coal,” market sources said.

According to information available with ICMW, a cement-maker, which brought US coal at Mundra Port, sold around 5 rakes or 18,000 tons of such coal to brick kiln-makers in western Uttar Pradesh.

In fact, a cement-maker had recently sold as much as 2 capesize cargo of US steam coal to brick kiln-makers in Punjab.

If the western Uttar Pradesh-based brick kiln-makers find US steam coal economical, it would open up a new avenue for US miners producing high-calorific value, high sulphur steam coal, feel industry sources.

According to information available with ICMW, US steam coal that is currently being purchased by brick-makers has a calorific value of 7,000 Kcal/kg (GAR), total moisture of 11% (ARB), ash content of 11% (ARB), VM of 40% (ARB), total sulphur of 3.5% (ARB) and is available in size 0-65 mm at a price of about Rs 8,200 per ton ex-Mundra Port, including loading charges.