Kolkata-headquartered Indian state-controlled coal mining company Coal India Limited (CIL) is working on a mechanism for a quarterly review of coking coal prices linked to Australian benchmark prices, a company source said on Thursday, August 3.
The first revision of coking coal prices under the new mechanism is expected within the next month, the source said on condition of anonymity since the policy is still to be approved by the board of directors of CIL.
The source said that the revised price of coking coal to be announced every quarter will reflect the average of the Australian benchmark price for the previous quarter.
The source pointed out that for the quarter ended June 2017 the Australian benchmark price was up 15 percent, but such an increase was not reflected in the coking coal price of CIL under the latter’s ad-hoc price revisions as in practice at present.
Two wholly-owned operating subsidiaries of CIL, Bharat Coking Coal Limited and Central Coalfields Limited, are the only domestic producers of coking coal in the country.