JSW Steel Eyes Mongolian Coking Coal Amid Logistical Hurdles

JSW Steel is exploring Mongolia for coking coal supply but faces logistical challenges due to Mongolia's landlocked geography. Sourcing coal is complex as routes via Russia or China are congested. JSW aims to diversify its sourcing to optimize costs, while current imports mainly come from Australia.

JSW Steel is actively exploring opportunities to source coking coal from Mongolia, though logistics present significant challenges due to Mongolia's landlocked position. A senior executive has highlighted that finding efficient transportation routes remains a key issue.

Currently, attempts to extract coal from Mongolia have been unsuccessful, despite considering transport solutions via neighboring countries such as Russia and China. Existing routes through Russia are crowded, while China offers no easy bypass, added Arun Maheshwari, Director of Commercial & Marketing at JSW Steel.

The government is involved in discussions aimed at sourcing coking coal from Mongolia as part of a strategy to diversify raw material supplies, potentially controlling costs and ensuring consistent availability. India presently relies largely on distant Australia for its coking coal needs, impacting transportation times and production costs.

(With inputs from agencies.)