JSW Steel has put on hold its plan to source coking coal from Mongolia, citing logistical difficulties in transporting the material from the landlocked nation to India, a top executive said on Tuesday.
“Mongolia was being explored as an alternative source, but there are a lot of logistics-related issues for transportation. As of now, it is not logistically feasible, and the plan is on hold,” JSW Steel Joint Managing Director and Chief Executive Officer Jayant Acharya said on the sidelines of the CII Global Sustainability Summit.
India’s reliance on imported coal
Coking coal is a critical raw material for steel production via the blast furnace route. India, the world’s second-largest steel producer, remains heavily reliant on imports for coking coal, sourcing over 80–90 per cent from a limited number of countries, with Australia as the main supplier. Long shipping durations contribute to higher logistics costs for Indian steelmakers.
In January 2025, a senior government official said discussions were underway to assess viable transport routes for Mongolian coal. Acharya added that JSW Steel will continue procuring coking coal from its existing suppliers to meet operational requirements.
The government has encouraged exploration of domestic coking coal reserves and adoption of alternative production methods as part of its decarbonisation roadmap.
