Ispat looking beyond China to source coking coal
Domestic steel producer Ispat today said it is looking to import coking coal from other countries, as sourcing the raw material from China has become dearer due to hike in duty rates.
By PTI |
NEW DELHI: Domestic steel producer Ispat today said it is looking to import coking coal from other countries, as sourcing the raw material from China has become dearer due to hike in duty rates. "We are looking at alternative options to import coking coal for our steel producing units," Ispat Industries Vice Chairman and MD Vinod Mittal said on the sidelines of ICC Coal Summit here.
The company imports about 8,00,000 tons of coking coal from China, which last month increased export duty on the product to 40 per cent from 25 per cent reducing operating margins of steel producers here. "About 90 per cent of our coking coal requirement is met through imports from China. Last year, we had imported around 8,00,000 tons," he said.
The company has been allotted a coking coal mine with estimated reserves of 70 million tons at Berhabind in Madhya Pradesh. Besides, it will come up with two coke oven plants with an investment of over Rs 2,500 crore.
The first coke oven plant will come up at its steel manufacturing unit at Dolvi in Maharashtra that would have the capacity to produce 3.6 million tons of steel and the second will come up in Madhya Pradesh.
The MP plant will have a coal washery unit and a 30 MW captive power plant. The two are expected to be completed in 18-24 months. The raw material cost, including coking coal, accounts for 30 per cent of the company's expenditure.
The company imports about 8,00,000 tons of coking coal from China, which last month increased export duty on the product to 40 per cent from 25 per cent reducing operating margins of steel producers here. "About 90 per cent of our coking coal requirement is met through imports from China. Last year, we had imported around 8,00,000 tons," he said.
The company has been allotted a coking coal mine with estimated reserves of 70 million tons at Berhabind in Madhya Pradesh. Besides, it will come up with two coke oven plants with an investment of over Rs 2,500 crore.
The first coke oven plant will come up at its steel manufacturing unit at Dolvi in Maharashtra that would have the capacity to produce 3.6 million tons of steel and the second will come up in Madhya Pradesh.
The MP plant will have a coal washery unit and a 30 MW captive power plant. The two are expected to be completed in 18-24 months. The raw material cost, including coking coal, accounts for 30 per cent of the company's expenditure.
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