SAIL evaluates Mongolian coking coal to diversify imports

By Staff Report 1 October 6, 2026 7:11 pm IST

SAIL has airlifted a one-tonne coking coal sample from Mongolia to assess its suitability as India explores alternative import sources.

Steel Authority of India (SAIL) has airlifted a one-tonne coking coal sample from Mongolia for the first time, testing the country as a potential supplier as India seeks to diversify imports and reduce dependence on Australia.

SAIL flew in the sample earlier this month and will assess whether the coal meets the requirements of its steelmaking operations. The company had planned the trial last year amid rising import requirements and logistical constraints faced by Indian steelmakers. India imports about 95 per cent of its coking coal requirements, with Australia accounting for at least half of these supplies. Coking coal represents nearly 40 per cent of steel production costs.

The trial is focused on diversifying supply sources, although transporting coal from landlocked Mongolia to India presents logistical challenges. India would likely have to rely on a longer route through Russia, given the prevailing constraints around routes through China.

SAIL will decide whether to pursue long-term supplies after evaluating the coal’s suitability, along with the cost and feasibility of transportation. Shipping through Russia could make Mongolian coal considerably more expensive than competing supplies, although an analyst assessed its quality as superior.

India and Mongolia agreed last year to work towards securing coking coal and copper supplies for Indian companies. India’s coking coal imports are forecast to rise by 3 to 5 per cent in 2026/27 from 64 million tonnes a year earlier, according to commodities consultancy BigMint.

Source: Construction World