India on 27 January classified coking coal as a critical and strategic mineral under the Mines and Minerals (Development and Regulation) Act 1957 in a bid to cut import dependence and strengthen domestic steel supply chains.
The move to classify coking coal as a critical and strategic mineral enables faster approvals for investment into mining technologies, possibly shortening lead times for production growth, simplifies clearances and enhances policy support for exploration and mining, market sources said.
By adding coking coal to the critical minerals list, the government has exempted projects from public consultation requirements and allowed the use of degraded forest land for compensatory afforestation, measures aimed at accelerating mine development and attracting private investment.
Classifying coking coal as a critical mineral will likely support domestic production growth over the medium term, market participants said, although import dependence is likely to persist in the near term given long project lead times and a specific preference of Australian premium mid-volatile (PMV) grades.
India, the second-largest crude steel producer, has ambitious plans to ramp up its steel production to 300mn t/yr by 2030 and 500mn t/yr by 2047. The country produced 164.9mn t in 2025, a 10pc increase on the year. The high production targets will result in increased consumption of raw materials like iron ore, coking coal and ferrous scrap.
India's coal ministry has launched a "Mission Coking Coal" initiative, which looks to achieve self-sufficiency in the coking coal area by boosting domestic production to 140mn t/yr by 2030. India currently meets around 95pc of its coking coal requirement through imports, leaving steelmakers exposed to global price volatility.
Argus assessed Australian premium low-volatile (PLV) hard coking coal at $251.50/t fob Australia on 29 January. This marks a significant $32.95/t increase from the start of the month, reflecting tight seaborne supply and elevated raw-material costs for steel producers. India holds an estimated 37.37bn t of coking coal reserves, but domestic output has lagged behind demand, pushing imports to about 73.53mn t in 2025.
