KIOCL mulls to revoke from proposed JV with OMC cancel

Shri Beni Prasad Verma in his Australia visit expressed a need of increased Coal supply for the country. 

Coal Supplies

Indian Union Minister of Steel, Shri Beni Prasad Verma is on five days business trip to Australia and New Zealand from 26 Jan, 2014. Mr Verma, in his visit has met Australian Minister of Industry and Resources, Ian Macfarlane and expressed a concern for supply of Coking Coal to Indian Steel industry. Speaking about India’s Steel manufacturing capacity and need for the raw material, Mr Verma proposed supply of Australian Coking Coal to the country on a priority basis.

India currently stands 4th among the largest Steel producing countries with 81.2 MnT productions in 2013 and it has plans to manufacture about 300 MnT in future decades. Indian Steel industry thus needs surplus supply of raw material in order to achieve its target of raising production level.

India ranks 5th in Coking Coal production, but still it import the raw material from countries such as Australia, Indonesia and others to meet Steel and power requirement. India had to ship in about 30 MnT Coking Coal in 2013 and it plans to increase its imports up to 94 MnT by 2017, then further to about 200 MnT by 2026.

Mr Verma will also meet Andrew Cripps, the Minister of Natural Resources and Mines, Government of Queensland, and Deputy Premier, Government of Queensland, Jeff Seeney. He is leading a team of delegations including Shri C.S. Verma Chairman of SAIL, NMDC and International Coal Ventures Private Limited (ICVL),  Shri S. Abbasi, the Joint Secretary and Ministry of Steel, , Shri G.P. Kundergi, CMD of MOIL Ltd., and Shri Ajay Mathur, CEO of ICVL

Indo-Australia business meet might help India to enhance the existing communal cooperation in the mining and Coal supply sectors. As a positive vibe for the meet, Australian miners have assured of maintaining a regular and priority based supply of the raw material. India’s initiative is appreciated highly by the Australian business delegates inviting more JVs for both the countries in near future.