India considers importing Mongolian coking coal via Russia
COAL & MINING

India considers importing Mongolian coking coal via Russia

India is exploring options to import regular supplies of Mongolian coking coal through Russia, aiming to reduce its dependence on transit via China, according to a senior government official. This move comes as New Delhi seeks to stabilize its supply chains amid last year's volatility in Australian coking coal supplies.

Indian steel mills, the second-largest producers of crude steel globally, have faced challenges with inconsistent Australian coal. As a result, the government has sent delegations to Mongolia to diversify its coking coal sources. Despite the longer transit route through Russia, Indian steel companies are now considering this option, as highlighted by the anonymous official due to the sensitive nature of the discussions.

Concerns about strategic sourcing via China have prompted this shift, especially following tensions between India and China, which escalated after a military confrontation in June 2020 along their disputed Himalayan border. While some supplies have reached India through China, authorities believe it is essential to avoid complete reliance on Beijing for consistent coking coal imports from Mongolia.

Mongolia, rich in resources yet landlocked, offers high-grade coking coal at approximately $50 per metric ton less than Australian coal. Indian steel companies consume about 70 million metric tons of coking coal annually, with 85% sourced from imports. Historically, Australia has supplied more than half of these imports, supplemented by coal from Russia, the United States, and other nations.

In the first half of the current fiscal year, India imported 29.4 million metric tons of coking coal, marking a nearly 2% increase from the previous year, according to commodities consultancy BigMint.

India is exploring options to import regular supplies of Mongolian coking coal through Russia, aiming to reduce its dependence on transit via China, according to a senior government official. This move comes as New Delhi seeks to stabilize its supply chains amid last year's volatility in Australian coking coal supplies. Indian steel mills, the second-largest producers of crude steel globally, have faced challenges with inconsistent Australian coal. As a result, the government has sent delegations to Mongolia to diversify its coking coal sources. Despite the longer transit route through Russia, Indian steel companies are now considering this option, as highlighted by the anonymous official due to the sensitive nature of the discussions. Concerns about strategic sourcing via China have prompted this shift, especially following tensions between India and China, which escalated after a military confrontation in June 2020 along their disputed Himalayan border. While some supplies have reached India through China, authorities believe it is essential to avoid complete reliance on Beijing for consistent coking coal imports from Mongolia. Mongolia, rich in resources yet landlocked, offers high-grade coking coal at approximately $50 per metric ton less than Australian coal. Indian steel companies consume about 70 million metric tons of coking coal annually, with 85% sourced from imports. Historically, Australia has supplied more than half of these imports, supplemented by coal from Russia, the United States, and other nations. In the first half of the current fiscal year, India imported 29.4 million metric tons of coking coal, marking a nearly 2% increase from the previous year, according to commodities consultancy BigMint.

Next Story
Infrastructure Transport

Ports, Shipping and Logistics to Drive Growth

India’s maritime sector remains a vital pillar of economic development, facilitating trade and global connectivity. Union Minister of Commerce & Industry Shri Piyush Goyal, speaking at the 12th Biennial International Conference on Ports, Shipping & Logistics 2025 in Mumbai, highlighted the need to enhance shipbuilding, flagged vessel operations, and logistics efficiency. The Minister noted that India has immense potential in shipbuilding and urged stakeholders to propose strategies for increasing Indian-flagged vessels. While India allows cabotage within WTO regulations, the country lacks a..

Next Story
Infrastructure Urban

India’s Investment Climate Strengthens Growth and Global Alliances

The Central Government is committed to creating a business-friendly investment climate, ensuring regulatory stability, and enhancing the Ease of Doing Business (EoDB) in India. Union Minister of Commerce & Industry Shri Piyush Goyal reiterated this during his virtual address at the Pune International Business Summit 2025, organised by the Mahratta Chamber of Commerce, Industries, and Agriculture (MCCIA) on January 24, 2025. Shri Goyal highlighted that Prime Minister Shri Narendra Modi’s recent visits to the USA and France have strengthened investment opportunities and global partnership..

Next Story
Infrastructure Urban

GeM Celebrates Six Years of SWAYATT Empowering Women and Startups

Government e Marketplace (GeM) commemorated six years of the Startups, Women & Youth Advantage through eTransactions (SWAYATT) initiative at its headquarters in New Delhi on 19 February 2025. Launched in 2019, SWAYATT was conceived to bolster the participation of women-led enterprises, startups, and youth in public procurement. Anchored in GeM’s core principle of social inclusion, the initiative is committed to enhancing ease of doing business by facilitating direct access to public procurement for Micro & Small Enterprises (MSEs), Self Help Groups (SHGs), and startups, particularly..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?