JSPL Diversifies Coking Coal Sourcing to Slash Costs by Over 50%

Jindal Steel and Power Ltd (JSPL) has diversified its coking coal sourcing, significantly reducing its reliance on Australian imports by over 50%. This strategic move aims to reduce manufacturing costs and improve supply chain efficiency, in line with India's efforts to minimize dependency on select countries for essential raw materials.

Jindal Steel and Power Ltd (JSPL) announced on Thursday that the company has successfully diversified its coking coal sourcing, effectively cutting down its dependence on Australian suppliers by more than 50%.

This strategic initiative is set to reduce the overall manufacturing costs of steel, according to the regulatory filing made by the company.

The development comes amidst governmental attempts to minimize India's reliance on a handful of countries for coking coal. Historically, Indian steel manufacturers have heavily depended on Australian coking coal due to its unavailability in the domestic market. Exploring alternative sources is expected to enhance the timely availability and reduce logistical expenses.

Pankaj Malhan, Executive Director in charge of Jindal Steel Angul, remarked, ''By reducing reliance on Australian coking coal imports and increasing intake from other regions, we've strengthened our supply chain and improved cost efficiency.''

Notably, the company's coke oven plants have successfully integrated these alternative coking coals, and JSPL plans further diversification in the upcoming months.

Jindal Steel and Power operates two steel mills in Odisha and Chhattisgarh with a combined capacity of 9.6 million tonnes. Industry estimates indicate that producing 1 tonne of crude steel requires approximately 1.5-2 tonnes of iron ore and 0.700 tonnes of coking coal.

(With inputs from agencies.)