Wedoany.com Report-Apr. 27, India is promoting the acquisition of overseas raw material assets, such as iron ore and coking coal, to support its growing steel industry, Steel Secretary Sandeep Poundrik announced at an industry event in Mumbai on Saturday.

Labourers load coal onto a supply truck on the outskirts of Jammu April 6, 2017.

“We are encouraging our companies to acquire assets abroad, right from iron ore to coking coal to even limestone and dolomite,” Poundrik said. “Raw material securitisation is the most important aspect of steelmaking.”

As the world’s second-largest crude steel producer, India plans to increase its steelmaking capacity to 300 million tons by 2030, up from the current 200 million tons. To meet this target, coking coal imports are expected to rise significantly, reaching 160 million tons by 2030, compared to 58 million tons currently, according to Poundrik’s statement on Friday.

Despite increased steel production, coking coal imports fell slightly by 0.7% in the fiscal year ending March, driven by reduced shipments from Australia and the United States, as reported by BigMint, a commodities consultancy. India depends on imports for 85% of its coking coal requirements, with Australia supplying over half of these volumes.

To diversify its sources, India is exploring partnerships with Mongolia, though logistical challenges persist due to the country’s landlocked location, Poundrik explained. Additionally, India’s state-run miner, NMDC, is actively seeking coking coal assets in Indonesia and Australia, according to Chairman Amitava Mukherjee’s remarks on Thursday.