India is exploring coking coal sourcing options beyond Australia, its largest supplier, as it taps into new markets like Mongolia, while it firms up plans to ramp up production at its own mines in Mozambique in Africa, said Nagendra Nath Sinha, Secretary, Steel Ministry.

India, the world's second-largest producer of crude steel, is also the largest importer of coking coal. The domestic demand was 57 million tonnes, majority of which is imported.

"Currently, Australia is the largest supplier for Indian steel mills. And in order to lower risk, we have been exploring other options and trying to source from other countries. Accordingly, in October 2021, we entered into an agreement with Russia to supply coking coal. We are now exploring sourcing options form other countries like Mongolia, and Mozambique – where we have our mines," Sinha told Businessline.

Discussions are on to increase coal supplies from Russia too, which generally come at an up to 20-30% discount. Trade sources suggest Russian coking coal supplies to India saw a 130% year-on-year increase to 2.64 million tonnes.

(Writing by Rebecca Liu  Editing by Harry Huo)
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