India Classifies Coking Coal as Critical and Strategic Mineral

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

India wants to boost its own sources of coking coal and to speed up the process it has reclassified it as a critical and strategic mineral.

Coking Coal Now Vital

India has designated coking coal as a critical and strategic mineral as it seeks ways to reduce its reliance on imports to support its growing steel industry. 

'Mission Coking Coal'

The Ministry of Coal announced the change and said that it will facilitate faster approvals for projects and accelerate exploration and mining activities, including deep-seated deposits. Today roughly 95% of the country's coking coal requirements for its massive steel industry are catered for by imports. The change in classification will include removing regulatory barriers to mining, including mandatory public consultation.  The ministry expects the changes to stimulate private investment in exploration, enrichment, and advanced mining technologies, while also boosting jobs in the mining, logistics and metallurgy industries. As part of its 'Mission Coking Coal' it will be aiming to boost domestic coking coal production and reduce import of coking in an effort to keep up with the projected strong growth in demand from the steel sector. It wants to increase domestic production up to 140 million tonnes (MT) by 2029-30. It stated: "Mining of critical minerals is exempt from public consultation requirements and permits the utilisation of degraded forest land for compensatory afforestation, measures that are also expected to encourage greater private sector participation."

The Coking Coal Issue

Today, the vast majority of coking coal used by India's steel industry comes from abroad, led by Australia. This, according to analysts EY Parthenon working with the India Steel Association, exposes the steel sector to global price swings, freight costs and geopolitical risks like the Russia-Ukraine war and shifting trade policies. In its India's Coking Coal Strategy report, it noted that India's raw coal output of 66.8 MT in 2024 had only 5 million tons of washed coal meeting industrial specifications. High ash content (25%--35%) and sulphur levels in indigenous reserves reduce quality and usability. In addition, the Jharia coalfields, which are home to some of India's best quality reserves (12 billion tons), suffer from legacy issues, including underground fires and land subsidence that have hindered extraction efforts.  

Vinayak Vipul, Partner, Business Consulting, EY Parthenon, said: "India's steel ambitions cannot be realized without addressing its heavy reliance on imported coking coal. While domestic production is projected to double by 2030, imports will still play a defining role in meeting demand. This dependence makes the sector vulnerable to price volatility and supply chain shocks. The way ahead is clear--India must accelerate beneficiation to unlock the true value of its reserves, diversify sourcing to reduce risk, and invest in technologies that pave the way toward low-carbon steel. Building a transparent pricing index and a national reserve will be equally critical to balance growth with resilience and sustainability."

Strong Steel Market

India was the world's second-largest crude steel producer in 2025, after China, producing more than 151 MT, a 4.7% bump over the 144 MT produced in 2024. Finished steel production reached 145 MT in 2025 and consumption was 150 MT, driven by major infrastructure projects, industrial development and city development. The National Steel Policy (NSP) of 2017 has set targets of 300 MT per annum (MTPA). "The Mission Coking Coal sets an ambitious target of 140 MT tonnes of *raw* domestic coking coal by 2029-30 but must necessitate reforms to expand beneficiation capacity, fast-track mine approvals and address logistics bottlenecks essential for achieving Atmanirbharta," commented Arun Maheshwari, director of Commercial and Marketing, JSW Steel. "India's heavy reliance on imports - nearly 90% of prime hard coking coal - underscores the urgency to scale captive mining and adopt advanced washing and blending technologies, crucial for cost reduction and supply stability. Unlocking greater beneficiation capacity and operationalizing washery developer-operator models are essential steps to improve domestic coal quality and logistics, supporting the steel sector's growth and import substitution goals."

Investing Abroad

In recent days it has been reported that the Indian government is to launch a strategic mission to acquire coking coal assets in Indonesia and Malaysia. A high level delegation will visit both countries which have been chosen for offering attractive investment opportunities in the coal sector due to having established extraction capabilities and favorable geological conditions.

Key Takeaways 

• India has designated coking coal as a critical and strategic mineral.
• It is removing many regulatory barriers to speed up domestic production to support its growing steel industry.
• 95% of India's steel sector's coking coal needs are imported, mainly from Australia.

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