India's SAIL explores Mongolian coal imports with trial shipment

Image Source : Business Standard

The Steel Authority of India Ltd (SAIL) is set to import a trial cargo of coking coal from Mongolia this month, marking a strategic move to diversify its coal supply sources. The trial shipment will help assess the quality and feasibility of Mongolian coal for long-term procurement, as India seeks alternatives to reduce reliance on traditional suppliers.

Key highlights

- Trial shipment details
SAIL plans to import a small batch of Mongolian coking coal, possibly by air, to expedite testing and evaluation.

- Strategic diversification
India currently imports around 85 percent of its coking coal needs, with Australia being the dominant supplier. The move to explore Mongolian coal aims to mitigate supply risks and improve cost efficiency.

- Future procurement plans
If the trial shipment meets quality standards, SAIL intends to scale up imports to 75,000 metric tons, strengthening India's coal supply chain.

- Market impact and industry response
The initiative signals India's commitment to securing stable raw material sources for its steel industry, with potential long-term benefits for domestic production.

Sources: Reuters, MarketScreener, Economic Times