The Government of India has designated coking coal as a critical and strategic mineral. This solution is aimed at accelerating internal geological exploration and productionto reduce the country’s dependence on imports.
The new status of a key resource for metallurgy will simplify administrative procedures and attract investment in deposit development. This is especially important for the development of deep-seated formations.
India currently imports about 95% of its coking coal needs. This resource is the main raw material for steel production, the demand for which is steadily growing within the country.
For Russia, as one of the major suppliers of coal to the world market, this decision has delayed consequences. No dramatic changes are expected in the short term, as increasing own production in India will take time. Russian coal retains competitive advantages in price and logistics.
However, in the long term, the successful implementation of the Indian strategy may gradually reduce import volumes. This creates a risk for Russian exporters, who may face the loss of a significant market.
Thus, declaring coking coal as a strategic mineral is a major step by India towards ensuring resource security its steel industry. This decision will have an impact on the structure of the global coal market in the coming years.
Source: @CarierNews
Image: Amit Dave
