New Delhi
India is targeting a coking coal production of 80 million tonnes (mt) in FY25, a 20 per cent increase over last year’s 66.55 mt, as it aims to bring down its import bill in the segment.
The increase in mineral production — a key feedstock in steel-making — will be supplemented by bringing on-stream washeries by Coal India Ltd. This include commissioning of two coking coal washeries and monetising of four more, while steel-mills such as Tata, JSW and SAIL will be looking at brownfield and greenfield expansion .
The world’s second largest crude steel maker, India, is already the largest importer of coking coal with over 58 mt shipments of the material coming in.
A policy for offering coking coal or PCI through washeries is under consideration too, as per a document shared by the Coal Ministry with the Steel Ministry. (businessline has a copy of the document)
At present, domestic coking coal washing capacity is to the tune of 23 million tonne per annum (mtpa) which includes 9.26–2 mtpa by SAIL and 7.6 mtpa by Tata Steel.
“Further engagement with the private sector is required to enhance the availability of coking coal...” the document reviewed by businessline noted.
In a response to Parliament, Union Coal Minister G Kishan Reddy said the current domestic blending of coking coal by the steel sector “increase from present 10 – 12 per cent to 30 – 35 per cent.”
“The available domestic coking coal resources have high ash content which require washing and blending with low ash coking coal for its use in steel-making. Steel CPSEs have been procuring coking coal from a diversified group of countries mainly Australia, United States, Indonesia, Mozambique, Russia etc,” the Minister said.
Ramping Up Washery Capacities
The Steel Ministry documents state that washery capacities will be ramped up by Coal India. CIL has plans to set up 11 washeries with 33 mtpa capacity, of which 15 mtpa is for supply to the steel sector.
“Of these... three washeries with 11.6 mty (million tonne yearly) capacity are already operational. The remaining are at different stages of construction or tendering,” the documents noted.
During the fiscal, “monitoring of remaining coking coal washeries to expedite tendering and construction” will also be carried out.
Steel mills like SAIL will ramp up washery capacities three times to 2 mtpa, Tata Steel will ramp up capacities by 45 per cent to 11 mtpa, while JSW is setting up a greenfield one at 2 mty.