India-based coal miner Coal India Limited (CIL) will invest $650 million over the next five years to build 20 washeries to ensure additional supply of 111 million mt per year of coal with low ash content and high calorific value to domestic steel and cement plants, a company official said on Friday, August 10.
The washery projects will be implemented in collaboration with private investors on build-operate-maintain basis with the business risk belonging entirely to CIL, the official said.
According to data provided by India's Ministry of Steel, production of washed coking coal for steel mills showed a declining trend from 7.18 million mt in 2009 to 6.37 million mt in 2011.
Supply of non-coking coal to direct reduced iron (DRI) units also fell to 18.76 million mt in 2011 from 23 million mt in 2010, according to ministry figures. Over 70 percent of Indian domestic steel production of 34.6 million mt per year by DRI units is based on non-coking coal, with just 9.60 million mt produced via the gas-based DRI process.