An interest has been shown by the world’s two leading steel companies Luxembourg-based ArcelorMittal and India’s Tata Steel, in mining coal in partnership with Coal India Ltd from the latter’s 18 forsaken underground mines with the aim to secure reserves of coking coal, a key input needed to make steel. 

In less than six months, the price of the coking coal in international market has more than doubled to $300-350 per tonne, and this has motivated the steelmakers worldwide to scout for reserves across the globe. 

India however can be said to be lucky, as coal here is sold at a really cheap price as compared to the international markets. Some of the official estimates point out that the difference in the prices is as much as between 35% and 200% for various grades of coal. 

A government official reported, “The attraction for steel companies in the project is not price of coking coal, but the access to reserve itself, if any of them manage to strike it.”

However, comments from spokespersons from both ArcelorMittal and Tata Steel could not be gathered.