India's SAIL flies in Mongolian coking coal as it seeks new supplies, sources say
NEW DELHI: Steel Authority of India (SAIL) has airlifted coking coal from Mongolia for the first time, testing the landlocked nation as a potential new supplier as India seeks to reduce its dependence on Australia, two sources said. The state-backed steelmaker flew in a 1-metric-ton sample earlier this month and will assess whether the coal meets its steelmaking requirements, the sources said,…
India's Steel Authority of India (SAIL) has successfully airlifted a 1-metric-ton sample of coking coal from Mongolia, marking the country's first attempt to source the critical material from a landlocked nation. The move is a part of SAIL's strategy to diversify its coking coal supplies, which currently come primarily from Australia, accounting for over 95% of India's needs.
The trial aims to assess the suitability of Mongolian coal for steel production, considering factors such as quality, cost, and transportation feasibility. Mongolia is landlocked between Russia and China, presenting significant logistical challenges for transporting coal to India, which typically relies on a longer route through Russia due to strained relations with China.
Despite the added expense, SAIL believes Mongolian coal's superior quality could justify the investment. The trial is part of broader efforts by Indian steelmakers to secure alternative sources of coking coal, which is essential for steel production and accounts for nearly 40% of the industry's costs.
Brief written by urgent.news from Business Recorder's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
