SAIL is exploring new markets for sourcing coking coal with a view to reducing dependence on select countries for the raw material. India reportedly imports about 56 million tonnes (MT) of coking coal worth around Rs 72,000 crore. Out of this, about 45 MT is imported from Australia alone and the remaining from South Africa, Canada and the US.
“Domestic steelmakers depend heavily on imported coking coal. For SAIL as well metallurgical coal (coking coal) is largely procured through imports apart from some domestic sourcing. We are looking at developing new destinations and vendors for sourcing coking coal from the international market to avoid dependence on limited sources,” said SAIL Chairman.
Raw material security holds significance for the company which plans to double its capacity to 50 MTPA by 2030. During 2019-20, requirement of about 1.53 MT coking coal was met from indigenous sources like Coal India Limited (CIL) and captive sources while the balance 13.70 MT was met through imports.
