Bharat Coking Coal Limited (BCCL) and Central Coalfields Limited (CCL), operational subsidiaries of Kolkata-headquartered Indian state-controlled coal mining company Coal India Limited (CIL), will offer coking coal through e-auction during the remaining months of current fiscal year, a company official said on Friday, August 11.
The official said that the BCCL and CCL, the two sole domestic suppliers of coking coal in India, would hold e-auctions for coking coal for supplies to steel mills without long-term contract with domestic miners.
Although the exact volumes on offer have yet to be decided by the two mining companies, it is likely that BCCL will offer 6.36 million mt and CCL 10 million mt through e-auctions between August 2017 and March 2018, the official said.
Sources at domestic steel companies have pointed out that, while coking coal acquired through domestic e-auctions will be priced higher than coking coal available through long-term contracts with domestic miners, e-auction coking coal is expected to be cheaper than the landed price of imported coking coal.