Jindal Steel Cuts Australian Coking Coal Dependency By 50%
The development is significant as the government has been working to reduce India's reliance on a few countries for coking coal supplies.
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Jindal Steel and Power Ltd. has announced that it has diversified its sources of coking coal, cutting its reliance on Australian supplies by over 50%. This move is expected to lower the overall cost of steel production, according to the company's regulatory filing on Thursday.
The development is significant as the government has been working to reduce India's reliance on a few countries for coking coal supplies.
Indian steel manufacturers had been sourcing large quantities of coking coal from Australia due to the lack of availability in the domestic market. By diversifying sources, the availability of coking coal is expected to improve and logistic costs are likely to decrease.
"By reducing reliance on Australian coking coal imports and increasing intake from other regions, we've strengthened our supply chain and improved cost efficiency," Pankaj Malhan, executive director in charge of Jindal Steel Angul, said.
The coke oven plants successfully blended the coking coal, JSPL said, adding that it is looking for further diversification in the coming months.
Jindal Steel and Power owns and operates two steel mills in Odisha and Chhattisgarh, having a combined capacity of 9.6 million tonne.
As per industry estimates, to produce every 1 tonne of crude steel, around 1.5-2 tonne of iron ore and 0.700 tonne of coking coal are needed.
(With inputs from PTI)
