India sees scope to increase coking coal imports from US

The world's second-biggest crude steel producer relies on imports for about 85% of its coking coal needs, more than half of which comes from Australia

India sees significant potential to import more coking coal from the United States as the South Asian nation expands its steelmaking capacity, Vikram Dutt, the top official at the country’s coal ministry, said on Thursday.

India held bilateral discussions with officials from the U.S. Department of Energy ahead of the India Energy Week event, which is currently underway, Dutt said.

The world's second-biggest crude steel producer relies on imports for about 85% of its coking coal needs, more than half of which comes from Australia. New Delhi has been seeking to diversify its supplies.

The U.S. currently accounts for about 10% of India's coking coal imports.

The high ash content in India's domestic coal limits its use in steelmaking.

The United States is “actively trying” to support its coal industry and increase exports, Kyle Haustveit, an official with the U.S. Department of Energy, said.

“We're here to meet with the Indian government to ensure that we're partnering together through innovation and technology transfer,” Haustveit said.

Neither Haustveit nor Dutt indicated by how much India could increase its imports of coking coal.

Indian and U.S. officials are also holding discussions on a potential bilateral trade deal, after talks collapsed last year following a breakdown in communication between the two governments.