Why in news?
India recently designated coking coal as a critical and strategic mineral to bolster domestic steel production and cut import reliance.
Policy shift
- Centre notified coking coal under the Mines and Minerals (Development and Regulation) Act on January 29, 2026, following recommendations from NITI Aayog and a high-level committee.
- This status speeds up mining approvals, exempts projects from public consultations, and allows use of degraded forest land, aiming to tap India's 37.37 billion tonnes of reserves mainly in Jharkhand.
- Imports, which met 95% of steel sector needs at 57.58 million tonnes in 2024–25, are expected to decline, supporting the National Steel Policy.
About Coking Coal
- A type of bituminous coal that, when heated in the absence of oxygen (above 600°C), produces coke—a porous, carbon-rich fuel.
- Role in Steelmaking: Coke acts as both a fuel and a reducing agent in blast furnaces, enabling the conversion of iron ore into molten iron.
- Difference from Thermal Coal: Unlike thermal coal (used for power generation), coking coal is valued for its ability to form coke with high strength and low impurities.
Economic & Industrial Impact
| Aspect |
Importance |
| Steel Industry |
Coking coal is indispensable for blast furnace steel production. |
| Imports |
Heavy reliance on Australia, USA, and Canada exposes India to global price volatility. |
| Stock Market Reaction |
Shares of Coal India and Bharat Coking Coal Ltd. (BCCL) rose 3–5% after the government’s designation. |
| Strategic Security |
Domestic mining reduces vulnerability to supply disruptions. |
Challenges & Risks
- Deep-Seated Deposits: Many reserves are difficult to access, requiring advanced mining technology.
- Environmental Concerns: Mining and coke production contribute to carbon emissions.
- Global Price Volatility: India’s dependence on imports makes steel prices sensitive to international market shifts.
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