India’s state-owned Steel Authority of India (SAIL) and NMDC Ltd are exploring the possibility of acquiring coking coal assets in Russia, Indian sources said, as New Delhi seeks to ensure supply of the vital raw material.
India, the world’s largest producer of crude steel after China, sent a delegation to Russia last month for preliminary talks with government and industry officials, three sources familiar with the matter said.
He asked to remain anonymous because the conversations were confidential.
“Both SAIL and NMDC are exploring raw material sourcing and are in talks with Russia,” a source said. He said SAIL has constituted an internal panel to study the issue.
Two Indian sources and one Russian source said India is also considering boosting nickel imports from Russia. Both Indian sources said initial talks between the two sides took place in New Delhi in April.
India’s steel ministry, SAIL and NMDC did not respond to Reuters email seeking comment on talks with Russia for mineral assets and raw materials. Russia’s Energy Ministry did not immediately respond to questions.
India currently imports nickel from other countries, including China, Japan, Norway and the United States, and only very small quantities from Russia.
Nickel is critical to India’s electric vehicle supply chain, especially for batteries. New Delhi aims to have 30% cars and 80% two-wheelers be electric vehicles by 2030, up from about 6% and 9% now.
This metal is also used in making stainless steel.
India seeks to ensure supply of the key raw material as it boosts steel production and accelerates its transition to clean energy.
In January, the government declared coking coal a critical and strategic mineral based on India’s import dependence.
It also wants to secure stable supplies of other key raw materials such as lithium, cobalt and rare earths, it said.
India now meets more than half of its coking coal requirements from Australia and the rest from countries like Russia and the United States.
NMDC has been evaluating overseas coking coal assets for some time. Last year, its chairman said the miner was exploring opportunities in Australia and Indonesia.
