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,…
Steel Authority of India (SAIL) recently transported a sample of coking coal from Mongolia, marking the country's first attempt to source coal from a landlocked nation. The state-backed steelmaker aims to diversify its coal supplies, reducing its heavy reliance on Australia, which currently supplies over half of India's coking coal needs.
The trial flight, which transported a 1-metric-ton sample earlier this month, will determine if the coal meets SAIL's steelmaking standards. SAIL, one of India's largest steel producers, has planned this trial since last year. Mongolia, situated between Russia and China, presents logistical challenges due to strained relations between India and China, which may require a longer route through Russia.
The quality of Mongolian coal is superior to competing supplies, but shipping it via Russia would significantly increase costs. India is expected to increase its coking coal imports by 3-5% in 2026/27, with Australia remaining its largest supplier. However, rising domestic demand and increased steel production will heighten pressure on global coking coal supplies.
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