New Delhi (Bharat Neeti Correspondent): India’s largest steel making entity SAIL has received multiple interest from coking coal companies based out of Africa. Other than iron ore, coking coal is a primary raw material used for manufacturing of steel.
Industry sources said the local steel players have been asked by the Centre to look for alternate coking coal sources to reduce dependence on select group of countries.
Meanwhile, looking it as an opportunity many African coking coal companies have sent business their requests to the Steel Authority of India Ltd (SAIL).
However, there is no information if SAIL is looking to explore business with the said companies. Analysts said, India is a big market for coking coal which has remained dominated by suppliers from Australia, Mozambique etc. India sources 85-90 per cent of coking coal from these markers as the raw material is not available in the country.
An order from SAIL will be a breakthrough for African suppliers and provide a new market to India which may prove cheaper to present markets. Steel makers have also been asked by the Centre to test coking coal from new countries. Mongolia is another country which has been trying to open its coking coal market for Indian steel makers.
