A research organization reports that imports of metallurgical coal from Russia have increased threefold in the last three years to around 15.1 million tonnes in 2023–2024, primarily as a result of cheaper pricing, while imports from Australia have decreased.

Russia’s imports of metallurgical coal increased to 11.3 MT in 2022–2023; this accounted for 16% of the 69.9 MT of met coal imports in that year. 15.1 MT, or 21% of all met coal imports of 73.2 MT, came from Russia in 2023–24.

Australia, a significant exporter of met coal to India, experienced a decrease in the country’s imports of the product. 50.7 MT of met coal, or 77% of India’s total imports, came from Australia in FY22.

Iron ore and met coal, also known as metallurgical coal, are necessary components in the manufacturing of steel.

“Cost-benefit” is the primary driver for the increase in metallurgical coal imports from Russia, according to BigMint analysts. Due to low pricing, domestic steel producers are paying less for imports from Russia, according to a BigMint analyst.

In an earlier interview with PTI, SAIL Chairman Amarendu Prakash stated that during the first two quarters of FY24, the company imported about eight shipments of coking coal, each weighing 75,000 tonnes and totaling 600,000 tonnes, from Russia.

Tata Steel has also experimented with using Russian coking coal to make steel. India can meet 50% of its requirement for coking coal from Russia, according to V R Sharma of Jindal Steel and Power (JSP).

According to a statement released by the coal ministry on Monday, India’s coal production reached a new high of 997.4 million tonnes in fiscal year 2024 (FY24), up 11.67% from the previous year but falling short of the 1-billion-tonne objective. The output was 893.19 million tonnes in FY23.

The government stated that record 1.04 billion tons of coal and lignite were produced overall, surpassing the milestone.

The state-run miner released a statement stating that coal production reached an all-time high of 88.6 million tonnes in March.

According to the statement, CIL’s subsidiaries in FY24—Bharat Coking Coal Ltd., Central Coalfields Ltd., Northern Coalfields Ltd., Western Coalfields Ltd., and Mahanadi Coalfields Ltd.—met their yearly goals for the second consecutive year.

With a production of 206.1 million tonnes, Mahanadi Coalfields in Odisha became the first coal-producing region in India to produce more than 200 million tonnes.

The amount of coal supplied to the power industry increased to 618.5 million tonnes in the just ended fiscal year from 586.6 million tonnes in FY23, a 5.4% annual increase. By providing 8.5 million tonnes more coal to power plants than the 610 million tonnes annual aim, the firm surpassed its target.

Furthermore, the amount of coal supplied to the non-power sector rose by 25%, from 108.1 million tonnes in FY23 to 135 million tonnes. The amount of coal stored at mine pitheads at the end of FY24 was over 90 million tonnes, about 30% more than the previous year.