JSW Steel's Mongolian Coking Coal Plans on Hold Due to Logistics

JSW Steel has paused its initiative to source coking coal from Mongolia due to logistical challenges in transportation. The dependence on imports continues, with over 80% sourced from countries like Australia. The Indian government aims to diversify supplies and explore domestic reserves to mitigate reliance.

JSW Steel has halted its plan to source coking coal from Mongolia, as revealed by a company executive on Tuesday. The decision comes amid significant logistical challenges in transporting the essential raw material from the landlocked nation to India.

The company's Joint Managing Director and CEO, Jayant Acharya, expressed at the CII Global Sustainability Summit that despite exploring Mongolia as an alternative source, logistical feasibility remains a major obstacle. India's steel industry heavily relies on imports, with Australia being the primary provider.

Efforts to diversify coking coal sources are ongoing, including governmental initiatives to explore domestic reserves and promote alternative production methods. Nonetheless, India's dependency on costly and time-consuming foreign supplies continues to be a pressing issue for the sector.

(With inputs from agencies.)