en.Wedoany.com Reported - Indian state-owned steelmakers are planning to acquire coking coal assets in Russia to secure raw material supplies. Earlier this year, India designated coking coal as a critical strategic mineral.

Two Indian sources familiar with the matter told Reuters that Steel Authority of India Limited (SAIL) and National Mineral Development Corporation Ltd (NMDC Ltd) visited Russia last month to hold talks with the Russian government and industry representatives, exploring the possibility of acquiring Russian coking coal assets.

Currently, about half of India's steelmaking coal supply comes from Australia, with Russia and the United States also holding significant shares. India is seeking to obtain more raw materials for its steel industry from Russia.

"Both SAIL and NMDC are exploring raw material procurement channels and negotiating with Russia," one of the sources told Reuters.

In January, India classified coking coal as a critical strategic mineral under the Mines and Minerals (Development and Regulation) Act, as part of structural reforms in the mining sector. The Indian federal government stated at the time that this move recognized "the strategic role of coking coal in ensuring mineral security and meeting the demands of the domestic steel industry."

Although India possesses approximately 37.37 billion tonnes of domestic coking coal resources, as the world's second-largest crude steel producer after China, the country currently relies on imports for about 95% of its coking coal demand. Through this reform, India aims to reduce its heavy import dependence, enhance the resilience of the steel industry's supply chain, and support the goals of the National Steel Policy. The reform is also expected to boost private sector investment in exploration and the adoption of advanced mining technologies.

In April, steel analysts at the Institute for Energy Economics and Financial Analysis (IEEFA) stated that the Indian steel industry is currently facing a surge in natural gas and liquefied petroleum gas prices due to the Middle East crisis.

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