Jindal Steel and Power Ltd (JSPL) announced on Thursday that it has significantly reduced its reliance on Australian coking coal by over 50% through diversification of its sourcing strategy. This move is aimed at lowering the overall production costs of steel, according to the company’s regulatory filing.
This development is important as the Indian government has been working to decrease the country’s dependence on a few select nations for coking coal, a key material for steelmaking. Traditionally, Indian steel companies have relied heavily on Australia for coking coal due to limited domestic availability. By sourcing from alternative regions, JSPL aims to ensure more consistent supply and lower logistics costs.
Pankaj Malhan, Executive Director of Jindal Steel Angul, stated that the shift away from Australian imports has strengthened the company’s supply chain and improved cost efficiency. The company also mentioned that its coke oven plants have successfully adapted to the new coal blends and that further diversification is planned in the coming months.
JSPL operates two steel mills in Odisha and Chhattisgarh with a combined production capacity of 9.6 million tonnes. Industry estimates indicate that producing one tonne of crude steel requires about 1.5-2 tonnes of iron ore and 0.7 tonnes of coking coal.
