The Indian government has declared coking coal a "critical and strategic" mineral as it aims to increase domestic production and reduce imports, government sources said on Friday, January 30.
Sources said that by placing coking coal under the category of critical and strategic minerals, it will allow the government to approve approvals for development and mining projects faster, as well as offer broader policy initiatives and policy support for projects that span various sectors. states.
The government also said the reform will help improve the resilience of supply chains for the steel sector and support the objectives of the National Steel Policy. Private investment in exploration, beneficiation and advanced mining technologies is also expected to be stimulated, as well as job creation in the mining, logistics and metals sectors, the sources added.
Currently, about 95 percent of the steel sector's coking coal demand is met through imports, resulting in a significant outflow of foreign exchange.
India has about 37.37 billion tonnes of coking coal, mainly located in Jharkhand with additional reserves in Madhya Pradesh, West Bengal and Chhattisgarh, but imports increased from 51.20 million tonnes in 2020-21. up to 57.58 million tons in 2024-25
