JSW Steel, one of India’s top steel producers, is facing logistical challenges in its efforts to import coking coal from Mongolia—an initiative aimed at reducing the nation’s heavy dependence on Australian coal. While JSW initially sought to trial 2,500 metric tons, SAIL, the state-run steel giant, aimed to secure a much larger 75,000-ton shipment. These efforts reflect India’s broader strategy to diversify sources for this critical steelmaking ingredient, given that the country imports nearly 85% of its coking coal, with over half currently sourced from Australia. However, Mongolia’s landlocked position and reliance on complex transit routes through China or Russia have created significant hurdles for smooth coal delivery.
To overcome these barriers, India is actively exploring an alternative transport corridor via Russia’s Trans-Siberian Railway to reach the port of Vladivostok, followed by sea shipment to Indian ports such as Chennai. This route would bypass Chinese ports, which pose geopolitical and operational difficulties despite being closer. In support of this strategy, the Indian government plans to send a delegation to Mongolia to finalize logistics and explore long-term supply agreements. With steel demand rising due to infrastructure growth and industrial expansion, ensuring a stable and diversified coal supply is becoming increasingly critical for India’s economic resilience and energy security. More