Best UPSC Academy in Hyderabad

Loading Events

« All Events

  • This event has passed.

26-November-2024-Special-Article

November 26 @ 7:00 am - 11:30 pm

COKING COAL: IMPORTANCE AND CRITICAL MINERAL STATUS

Coking coal, also known as metallurgical coal, is essential for steel production and infrastructure development. India’s high dependence on imported coking coal poses challenges for its economic stability and energy security.

A recent NITI Aayog report, “Enhancing Domestic Coking Coal Availability to Reduce the Import of Coking Coal”, recommends classifying coking coal as a critical mineral. This step could boost domestic production, strengthen the steel industry, and reduce reliance on imports.

Why Should Coking Coal Be Declared a Critical Mineral?

Meets Critical Mineral Criteria

Coking coal aligns with the globally recognized parameters for critical minerals:

  • Economic Importance: Essential for industries like steelmaking, which are integral to economic growth and job creation.
  • High Supply Risk: India’s dependence on imports, coupled with a global concentration of resources in a few countries, makes coking coal vulnerable to supply disruptions.
  • Lack of Substitutes: Unique properties of coking coal make it irreplaceable in current steel production methods.

Vital for Steel Production

  • Constitutes approximately 42% of steel production costs, impacting the affordability and competitiveness of steel.
  • Steel is indispensable for infrastructure projects, industrial growth, and job creation in India.

Reducing Import Dependency

  • India imports about 85% of its coking coal, compared to the EU’s 62%.
  • In FY 2023-24, imports reached 58 million tonnes, costing ₹1.5 lakh crore.
  • Dependence on imports exposes the economy to price fluctuations and geopolitical risks.

Abundant Domestic Reserves

  • India has 16.5 billion tonnes of medium-quality and 5.13 billion tonnes of prime-quality coking coal reserves.
  • Harnessing these reserves can:
  • Enhance energy security.
  • Reduce import reliance.
  • Ensure stable supply chains for steel production.

Enhancing Competitiveness of Steel Industry

  • Declaring coking coal a critical mineral would incentivize domestic production, lower costs, and improve India’s global steel competitiveness.
  • Integrated Steel Plants (ISPs) imported coking coal worth ₹1.5 lakh crore in FY 2023-24, highlighting the need for domestic solutions.

Improving Coal Washery Utilization

  • Current capacity utilization of public-sector washeries is below 32%, with washed coal yields only 35-36%.
  • Investing in efficient washing technology can improve yields, reduce waste, and lower costs.

Aligning with Global Practices

  • The European Union lists coking coal among its critical raw materials, alongside minerals like lithium and cobalt.
  • India adopting a similar approach would align with global standards and prioritize this resource.

Energy Security and Sustainability

  • Developing domestic reserves reduces import reliance and enhances energy independence.
  • A robust supply of coking coal supports India’s commitment to achieving Net Zero emissions by 2070.

Coking Coal in India

High Import Dependence

  • India is the largest global importer of coking coal, with imports hitting a six-year high of 29.6 million tonnes in H1 FY25.
  • Key suppliers include Australia, the US, and Russia.

Steel Production Growth

  • India is the world’s second-largest crude steel producer, following China.
  • Rising steel production drives higher coking coal demand.

Changing Import Trends

  • Imports from Russia increased by 200% between H1 FY24 and H1 FY25.
  • Australia’s share dropped from 80% in H1 FY22 to 54% in H1 FY25.
  • India is diversifying its supply sources with increased imports from Mozambique and Indonesia.

About Coking Coal

Definition and Properties

  • Coking coal is a sedimentary rock used to produce steel.
  • It contains more carbon, less ash, and less moisture than thermal coal, which is used for power generation.

Role in Coke Production

  • Heated in coke ovens without air, coking coal is transformed into coke, a carbon-rich material essential for steelmaking.

Steelmaking Process

  • Fuel: Coke burns at temperatures of 1,000-1,200°C to produce carbon monoxide.
  • Reducing Agent: Carbon monoxide reduces iron ore (Fe₂O₃) to iron (Fe) in blast furnaces.

Global Producers

  • China leads global coking coal production (62%), followed by Australia (15%), Russia (9%), the US (5%), and Canada (3%).

Strategic Importance

  • Steel is critical for industries transitioning to low-carbon technologies.
  • Producing one tonne of steel requires approximately 780 kg of coking coal.

India’s Critical Mineral Strategy

Critical Mineral List

  • India has identified 30 critical minerals, including lithium, cobalt, nickel, and rare earth elements, essential for energy and industrial needs.

States with Reserves

  • Key minerals are found in states like Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, Chhattisgarh, and Jammu & Kashmir.

Reducing Import Dependency

  • India imports 100% of key minerals like lithium and cobalt, critical for technologies like batteries and renewable energy.
  • Demand for these minerals is expected to double by 2030.

Government Initiatives for Critical Minerals

  • Mineral Security Partnership (MSP): Ensures a resilient global supply chain for critical minerals.
  • Supply Chain Resilience Initiative (SCRI): Strengthens supply chains through international cooperation.
  • Investment Partnerships: Collaborates with Australia and other resource-rich nations.
  • Khanij Bidesh India Ltd (KABIL): Secures overseas mineral assets.
  • Recent Legislation: Amendments in the Mines and Minerals (Development and Regulation) Act and Offshore Area Minerals Act promote sustainable mining.

Conclusion

Declaring coking coal a critical mineral is essential to reduce import dependency, ensure affordable steel production, and support India’s economic and energy goals. A coordinated approach involving public-private partnerships and technological advancements can boost domestic production, improve efficiency, and secure India’s strategic resource needs.

Mains Question:

  1. “Discuss the significance of coking coal as a critical mineral for India, highlighting its role in steel production, import dependency, and energy security. Suggest measures to enhance domestic production.” (150 WORDS)

Details

Date:
November 26
Time:
7:00 am - 11:30 pm
Event Category:
error: Content is protected !!