Sail Keen On Australian Tieups For Coking Coal

Addressing a seminar organized here by the Australian Trade Commission, Garcha said the total coking coal reserves available to the steel industry for 1996-97 are 13.20 million tonnes against a projected demand of 26.01 million tonnes.

There is, thus, a shortfall of 12.81 million tonnes.

To bridge this huge demand-supply gap, which may widen further, imports of coking coal may have to be raised substantially by the year 2006-07.

Increased imports will, however, be hampered by the limited cargo handling capacity and high costs of Indian ports.

Steel Authority of India Limited is seriously considering the adoption of the stamp charging process to reduce its consumption of coking coal, the SAIL diector added.

 

Outdated coal washeries and excessive use of high quality coking coal reserves in the upper seams were some of the main reasons for the qualitative deterioration in indigenous coal supplies.

Joint ventures with Australian mining firms would assist in the development of infrastructure facilities - which require substantial capital investment and advanced technological inputs.

Identifying the few virgin blocks fit for mining that remain Jharia, Garcha pointed out that the existing prime coking coal reserves are on the verge of depletion.

In the south-eastern sector, the geological reserves of Tasra are estimated at 238 million tonnes of which 75 million tonnes are quarriable reserves that can be developed as open cast mines.

The other virgin blocks in this sector - Parbatpur, Mahal and Sitanala with total reserves of 529 million tonnes - can be utilised only through underground mining.

The coalfields central sector contains the Kapuria block with 165 million tonnes of geological reserves, which also require underground mining.

Garcha added that many of the identified virgin blocks hold extensive recoverable gas reserves whose extraction rate may range between 2 and 2.5 million cubic meter per annum.

The coke intake at blast furnaces may be reduced to some extent by injections of these gases, he said, but added that detailed exploration and investigation is necesary for extraction.

CIL wants mining ventures with Australia

Our Bureau CALCUTTA

The chief general manager of Coal India Ltd (CIL)s foreign projects division, R Bhaskaran, said the countrys raw coal output can be increased from the present 6.5 million tonnes per annum to 7.5 million tonnes if Australian mining technology is used.

Addresing a `mining workshop organised by the Australian Trade Commission here to discuss mining opportunities for foreign companies in India, Bhaskaran said Coal India is keen on joint ventures in captive mining with private sector coal-consuming firms.

The private company would be able to retain 26 per cent of the equity, he addded.

CIL has so far identified 56 blocks, with total reserves of 16,964 million tonnes, for captive mining.

These blocks have a combined output potential of 170 million tonnes of coal per annum.

Seventeen of these blocks have been allocated to the power sector, which requires 39.8 million tonnes per annum while four blocks have been allocated to the steel sector, with an annual requirement of 10 million tonnes. One mining block has been given to the sponge iron sector which needs 1.5 million tonnes per annum.

Coal demand for 1996-97 has been projected at 325 million tonnes while the estimated availability is 289 million tonnes, implying a shortfall of 36 million tonnes. The power sector alone has a projected demand of 215 million tonnes of coal while the steel sector is expected to require 40.5 million tonnes in 1996-97.

Out of total world reserves of 24,460 billion tonnes, India has 202 billion tonnes, of which only 70 billion tonnes are in the form of proven resources.