Asia Press Agency

Tag: coking coal

  • SAIL Increases Coking Coal Imports from Russia

    SAIL Increases Coking Coal Imports from Russia

    In an effort to ensure a stable supply of coking coal and manage costs, Steel Authority of India Ltd (SAIL), the country’s largest steel producer, has ramped up its imports of coking coal from Russia. SAIL plans to complete imports of 300,000 tonnes of coking coal from Russia by the end of the current quarter (July – Sept), according to Amarendu Prakash, Chairman of SAIL.

     

    Chairman Prakash stated that SAIL’s coking coal imports from Russia are ongoing and that the company had recently received shipments totaling 300,000 tons, equivalent to six ships in the last quarter. The company is also in the process of completing the import of four more ships.

     

    Highlighting the cost advantage, Chairman Prakash noted that importing coking coal from Russia has proven to be more cost-effective compared to imports from other nations. SAIL’s approach to diversify its sourcing strategy includes long-term suppliers from both Australia and Russia.

     

    To further bolster its coking coal supply, SAIL, through its special purpose vehicle (SPV) in collaboration with International Coal Ventures Private Limited (ICVL), is looking to double the capacity of the Benga coal mine in Mozambique. Currently, ICVL has a capacity of 2 million tonnes per annum (MTPA).

     

    The increased focus on imports from Russia is partly driven by the challenges associated with sourcing premium hard coking coal (PHCC) from Australia. Limited supply due to mine suspensions has led to a sharp increase in PHCC prices. Indian steel mills, in anticipation of post-monsoon demand, have consistently bid for coking coal, further exacerbating price pressures.

     

    Chairman Prakash expressed concern about the rising prices of coking coal, which have directly impacted the company’s margins. The import of more affordable coal from Russia is helping SAIL mitigate the impact of rising costs and maintain its competitiveness in the Indian steel industry.

     

    While SAIL continues to import its coking coal requirements from Russia, data from S&P Global Commodities at Sea indicates that India’s imports of Russian coal between May 22 and July 23 slightly decreased compared to the same period in the previous year. In contrast, Russia and Turkey have witnessed increased imports from Russia during the same period, highlighting the global dynamics of the coking coal market.

     

    SAIL’s efforts to secure a stable and cost-effective supply of coking coal align with its commitment to maintaining its position as a leading player in the Indian steel industry.

  • Power Mech Projects Secures ₹30,438 Crore MDO Project

    Power Mech Projects Secures ₹30,438 Crore MDO Project

    Power Mech Projects Ltd, a company that specializes in industrial services and construction for the power and infrastructure sector, has successfully secured a significant mine development and operation (MDO) project from the Steel Authority of India Ltd. (SAIL) valued at approximately ₹30,438 crore over the contract period.

     

    The project involves the development of the Tasra open cast mine situated in the Jharia Coal Fields in Dhanbad, Jharkhand. The concession period for the mine spans 28 years, including two years dedicated to the development phase.

     

    Under this contract, Power Mech Projects will be responsible for various tasks such as mine infrastructure development, overburden removal, and coking coal extraction. Additionally, they will handle tasks like crushing, transportation, setting up a coal washery with a capacity of 3.5 MTPA, supplying steel grade coking coal to SAIL, conducting rehabilitation and resettlement (R&R) activities, and other mining-related activities outlined in the project document.

     

    The Tasra project boasts an impressive total coal extraction reserve of 96.78 MT, with an annual capacity of 4 MTPA. Furthermore, it is estimated that over 535.29 MBCM of overburden will be removed during the project’s duration.

     

    Power Mech Projects, in partnership with PC Patel Infra, has been awarded the project. As the consortium leader, Power Mech Projects holds a 74% equity stake, while PC Patel Infra holds the remaining 26%. To effectively execute the project, a special purpose vehicle (SPV) will be formed.

     

    Chairman and Managing Director of Power Mech Projects, Sajja Kishore Babu, expressed optimism about the project, stating that it will bolster their order book and provide a well-balanced mix between power and non-power segments. He also emphasized that the project is fully equipped with all the necessary statutory approvals and is ready for mining operations. The company is projected to start booking revenue from the project in FY24, with an estimated peak turnover of around Rs. 1,200 crore annually, including escalation.

     

    The Tasra project holds strategic significance for India, as the country heavily relies on expensive imports to meet its coking coal needs. With this project, SAIL aims to address the growing demand for coking coal and reduce the dependency on imports. Together with another project, KBP, the Tasra MDO project will contribute to generating 9 MTPA of coking coal when both mines achieve peak capacities. This locally extracted coking coal will serve as a cost-effective alternate,tive to imported coal, leading to substantial savings in foreign exchange.

     

    For Power Mech Projects, this project signifies a strategic step forward in enhancing its capabilities and utilizing its technical expertise in project implementation.