The importance of high quality coking coal from New South Wales for India’s emerging economy will be outlined at international industry conference Global Steel 2011 in New Delhi this weekend.
The state exports over 28 million tonnes of coking coal for steel making each year, and since 2007-08 exports to India have increased by 35 per cent, to 3.8 million tonnes per annum.
These figures are expected to rise dramatically over the next decade, as India’s need for coking coal is forecast to increase by an average of 13 per cent each year to 2020.
NSW Minerals Council CEO Nikki Williams will deliver the presentation and says NSW exports are ideal for the Indian requirements.
“NSW has a strong relationship with India in coal trade that continues to grow, predominantly in high quality coking coal, which India must be able to access if its continued development is to be realised,” Williams said.
She said that while India produces coking coal for domestic use, they cannot supply enough for the country’s steel industry.
The country is second behind Japan for imports of coking coal from NSW, after overtaking South Korea in 2009.
“Our state is ideally located to provide for this growth in the coming years.
Australia’s two main coal states, NSW and Queensland, are both expanding coal production and infrastructure capacity to help meet demand.
Accelerating energy demand in India also means there are great opportunities for thermal (or energy) coal exports from Australia.
Affordable, high quality thermal coal is critical to providing dependable electricity, essential for improving access to services such as public health and a modern education system in emerging economies.”
Two thirds of India’s energy needs are met by coal and it is expected to be the world’s largest importer of thermal coal by 2015.
Global minerals consultancy Wood Mackenzie forecasts demand to jump by an average of 17% per year in coming years as the nation continues to develop.
The conference has been organised by Illawarra coal producer Gujarat NRE Coking Coal and Indian business paper The Economic Times. Gujarat NRE is India’s largest independent supplier of coking coal, much of which is sourced from the company’s Illawarra coal mines NRE No.1 Colliery at Russell Vale and NRE Wongawilli.