JSW Steel is exploring the possibility of sourcing coking coal from Mongolia, but logistical issues remain a major challenge, according to a senior company executive. Mongolia has been on the company’s radar as a potential supplier, but its landlocked geography presents significant transportation hurdles. Arun Maheshwari, Director of Commercial & Marketing, highlighted these concerns during an investor call.
“Currently, we haven’t been able to source any coking coal from Mongolia,” Mr Maheshwari explained in response to a question about the country’s potential as a supplier. Despite the company’s interest, the transportation routes remain a roadblock, even when considering alternatives like passing through neighboring countries such as Russia or China.
“Using routes through Russia is already heavily congested, and the logistics from China are also problematic at this stage,” he added, though he reaffirmed the company’s intent to keep exploring Mongolia as a potential source of supply. JSW Steel has long relied on sources in Australia, Russia, the US, Mozambique, and Indonesia for coking coal, and these partnerships will continue.
Coking coal is an essential raw material in steel production, particularly for blast furnace operations. The Indian government has been in talks with Mongolia to explore the possibility of importing this critical resource, aiming to diversify supply sources, improve availability, and lower overall production costs.
In January, a senior government official mentioned that India is looking into logistical solutions for importing coking coal from Mongolia. Currently, India is heavily reliant on a few key suppliers, especially Australia, which provides 80-90% of the country’s coking coal needs. However, sourcing from distant regions increases both the time and cost of transporting the material, making it a less efficient option.
JSW Steel Limited, headquartered in Mumbai, is a leading Indian multinational steel producer and the flagship company of the JSW Group. Established in 1982, the company has grown to become one of India’s largest private sector steel manufacturers, with a significant presence in both domestic and international markets.
JSW Steel operates state-of-the-art manufacturing facilities across India, including plants in Vijayanagar (Karnataka), Dolvi and Tarapur (Maharashtra), Salem (Tamil Nadu), and Vasind (Maharashtra). The Vijayanagar plant is notable for being the largest single-location steel-producing facility in India, with a capacity of 17.5 million tonnes per annum (MTPA) . The company’s product portfolio encompasses a wide range of steel products, including hot-rolled, cold-rolled, galvanized, and color-coated steel, catering to various sectors such as automotive, construction, infrastructure, and appliances.
JSW Steel has also expanded its global footprint with operations in the United States, where it operates facilities in Mingo Junction, Ohio, and Baytown, Texas . These international ventures align with the company’s strategy to enhance its global competitiveness and meet the growing demand for steel products worldwide.
Committed to sustainability and innovation, JSW Steel has implemented various initiatives to reduce its environmental impact and improve operational efficiency. The company has received several accolades for its efforts, including recognition as a Steel Sustainability Champion by the World Steel Association for multiple consecutive years . Under the leadership of Chairman Sajjan Jindal, JSW Steel continues to focus on technological advancements and strategic partnerships to drive growth and contribute to the development of the steel industry both in India and globally.
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