Jindal Steel and Power Ltd (JSPL) announced on Thursday that it has reduced its reliance on Australian coking coal by over 50%. The company has diversified its sources for this crucial raw material, which will help lower the costs of steel production.
This move is significant as the Indian government is working to decrease the country’s dependency on a few specific countries for coking coal, a key ingredient in steelmaking. Until now, Indian steel companies have mostly imported coking coal from Australia due to the lack of domestic supply. By sourcing from other regions, JSPL aims to ensure a steady supply and reduce transportation costs.
Pankaj Malhan, Executive Director at Jindal Steel Angul, said, “By cutting down on Australian coking coal imports and increasing supplies from other regions, we’ve made our supply chain stronger and our production more cost-effective.”
JSPL has successfully mixed these new coking coal sources in its coke oven plants and plans to continue diversifying its supply chain in the coming months.
Jindal Steel and Power operates two steel mills in Odisha and Chhattisgarh with a combined production capacity of 9.6 million tonnes. Industry estimates suggest that producing 1 tonne of crude steel requires about 1.5-2 tonnes of iron ore and 0.7 tonnes of coking coal.
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