JSW Steel has announced a pause in its plans to source coking coal from Mongolia, citing significant logistical challenges. The move underlines the persistent difficulties faced by steelmakers in securing reliable raw material imports, especially for a resource as critical as coking coal.
Coking coal is a key input in steel production, and Indian manufacturers remain heavily dependent on imports to meet demand. Mongolia had emerged as a potential alternative supply source, offering the prospect of diversifying procurement away from traditional suppliers such as Australia. However, logistical constraints—ranging from inadequate transport corridors to high costs of freight movement across landlocked terrain—have delayed the initiative.
Company representatives indicated that while the plan has not been permanently shelved, the current conditions make sourcing from Mongolia commercially unviable. Instead, JSW Steel is expected to continue relying on existing international suppliers while monitoring developments in regional connectivity and infrastructure improvements.
The decision reflects a broader challenge confronting the Indian steel industry, which consumes large volumes of coking coal annually. Volatile global prices, supply chain bottlenecks, and geopolitical shifts have created uncertainty around access to consistent and affordable supplies. Industry analysts note that such vulnerabilities place pressure on domestic producers, particularly as demand for steel continues to expand in infrastructure and construction sectors.
JSW Steel’s cautious stance also highlights the need for long-term strategies to secure raw materials, including greater investment in domestic exploration, partnerships with overseas miners, and efforts to develop alternative technologies that reduce dependence on imported coal. The company reaffirmed its commitment to exploring diversified sourcing options while aligning with India’s broader steel growth ambitions.
