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India wants to increase the import of coking coal from Russia tenfold

India wants to increase the import of coking coal from Russia tenfold
Photo: Mechel PAO

India and Russia signed a memorandum at the Russian Energy Week, providing for an increase in the supply of coking coal from the Russian Federation. There is the potential of the fields for such an increase in supplies, and logistics may become a problem.

According to Vedomosti, citing a representative of the Russian Ministry of Energy, in 2020 India imported 1,2 million tons of coking coal from Russia, and in the first nine months of 2021 - 500 thousand tons. The memorandum provides for an increase in supplies to 40 million tons of coking coal per year.

Coking coal is used in metallurgical production, and India is still the country with the lowest per capita steel consumption. The country plans to significantly increase production, but with sufficient ore reserves, it is experiencing difficulties with coking coal.

Coal can be delivered to India through the ports of the Azov-Black Sea basin - in the southern direction, or through the Far East, and it is in the Far East and Eastern Siberia that there are deposits that can satisfy the growing demand of India. However, it is now impossible to provide additional transportation of coal by rail to the terminals of the Far East. In total, 2020 million tons of coal were exported through the ports of Russia in 174, an increase in this indicator by 40 million tons, as provided by the signed memorandum, means a 23% increase, which is unrealistic to overpower under existing conditions. However, the modernization of the port infrastructure and the expansion of the Eastern range - BAM and Transsib - will allow achieving the target by 2025.  
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