SAIL seeks long-term coking coal supply from global cos

State-owned Steel Authority of India (SAIL) today invited bids from global companies for long-term supply of coking coal to feed its expanding steel business.

"Expression of Interest (EoI) are invited from eligible reputed overseas coal producers/ overseas coal suppliers of imported coking coal, interested in entering into long term agreement," the company said in an advertisement.

The interested companies have to submit their bids to the steelmaker by October 28, 2010, it said.

Coking coal, along with iron ore is a vital steel-making input. The country's largest steelmaker is rich in iron ore reserves but lacks deposits of coking coal. It imports a significant quantity of coking coal from countries like Australia to run its business.

Through, International Coal Ventures, a consortium with PSUs like NTPC, Coal India, the steel major is scouting for coking coal resources in countries like the US, Mozambique, Indonesia among others.

Coking coal prices are also hovering in the range of over $200 a tonne as against $125 a tonne last year.

SAIL Chairman C S Verma had earlier floated the idea of combining the resources of all the industry players to create a "war chest" for "big ticket" buyouts of coking coal mines abroad.

Meanwhile, another PSU under the steel ministry, Kudremukh Iron Ore Company (KIOCL), has invited bids from domestic iron ore miners and traders for supply of five lakh tonnes of iron ore to be utilised for pelletisation at its Mangalore plant.

The interested companies can participate in a meeting held on October 20, 2010, it added.