A cyclist rides past unloaded steel coils at the Deendayal Port in Kandla, in the western state of Gujarat, India, April 5, 2025.
India, a major global producer of crude steel, relies on imports to meet 85% of its coking coal needs, with Australia supplying over half of these imports. NMDC, the country’s leading iron ore miner, operates four mines domestically and sees potential in expanding its operations. Mukherjee noted: “They (explorations) are in different stages of negotiations.” He refrained from sharing further details, citing confidentiality.
Other Indian steel companies also depend on international coking coal sources. Jayant Acharya, CEO of JSW Steel, India’s top steelmaker, stated earlier on Thursday that the company procures coking coal from Australia, the United States, and Mozambique. Similarly, state-owned SAIL sources its coking coal from countries including Mongolia.
Coking coal prices have historically fluctuated due to its significant role in global trade and susceptibility to weather disruptions, according to BigMint, a commodity consultancy. In 2023, unpredictable weather in Australia affected coking coal supplies, impacting the market.
NMDC’s exploration of overseas coking coal assets reflects a strategic move to strengthen its position in the steel production supply chain while addressing India’s reliance on imports.
