The Indian Steel Minister Mr. Ram Vilas Paswan is on a visit to Australia to explore the possibility of securing coking coal supplies for the state-run steel mills, Steel Authority of India Limited (SAIL) and Rashatriya Ispat Nigam Ltd (RINL), in the context of their announced steel capacity expansions.
"To minimize its cost of production, SAIL has been looking out for acquisition of mines. It is actively looking out to acquire coking coal mines in Australia," Mr. Paswan said.
During the visit, the delegation including Mr. Paswan and representatives of SAIL and RINL will visit coal mines and look into the possibilities of acquisitions and joint ventures with local firms.
Mr. Paswan pointed out that with the SAIL and RINL plans to double their existing capacities, the supply of raw material is becoming of the primary importance. These two companies account for 15 million metric tons of coking coal imports, 90 percent of which comes from Australia.