India Eyes Overseas Coking Coal To Strengthen Supply
India is preparing a government-led mission to engage with mining partners in Indonesia and Malaysia to explore opportunities for acquiring coking coal assets, a strategic move aimed at strengthening raw material security for the nation’s steel and construction sectors. The initiative comes against a backdrop of rising domestic demand for steel-making inputs, regulatory emphasis on securing critical minerals, and broader infrastructure ambitions that underpin urban expansion and industrial growth.
Coking coal — the high-grade coal essential for traditional blast furnace steel production — has been officially designated by the Indian government as a critical and strategic mineral, intended to streamline approvals and encourage investment in both domestic and global supply chains. India currently relies on imports for roughly 95 % of its coking coal needs, making it vulnerable to price volatility and supply disruptions in global markets.The planned diplomatic and commercial outreach to Indonesia and Malaysia reflects a calculated effort to secure long-term access to overseas coal reserves that can feed steel production pipelines tied to infrastructure projects, urban housing and industrial corridors. Indonesia is a significant global coal exporter, while Malaysia has a history of metallurgical coal production and proximity that could offer logistical advantages for Indian buyers compared with more distant suppliers.
This overseas pursuit aligns with parallel domestic efforts under the government’s Mission Coking Coal strategy, which aims to scale up internal production, modernise mining practices and reduce import dependence over the medium term. Recent policy reforms and collaboration with private operators have improved output from legacy coal fields and expanded washed coal capacities, but imported coal remains a key buffer for meeting immediate industrial demand.Industry analysts say that securing global assets could provide India with greater supply certainty, reduce exposure to geopolitical risk, and improve cost predictability — all critical for sustainable growth in the steel-intensive sectors that drive urban development, including affordable housing, transport infrastructure and energy facilities. Holding equity or long-term leases in foreign mines may also give Indian firms leverage to plan investments, hedge price movements and strengthen manufacturing competitiveness.
However, these ambitions intersect with environmental and climate considerations. Coal-based steel production is carbon-intensive, and the sector is under pressure to adopt cleaner technologies, including hydrogen-based direct reduced iron (DRI) routes, increased use of scrap, and carbon capture systems. Securing coking coal assets abroad must be balanced with a parallel shift toward lower emission pathways to align with India’s net-zero commitments and sustainable urbanisation goals.
For urban planners and policy makers, the strategic outreach encapsulates a dual challenge: anchoring raw material supply chains that support rapid infrastructure build-out, while ensuring energy and climate resilience in cities emerging as global economic hubs. As India’s steel demand rises with metro rail expansion, highways, affordable housing and industrial corridors, dependable access to coking coal — combined with investment in cleaner production — will be pivotal for both economic and environmental outcomes.
