India to reduce dependency on Australian coal, acquiring mine in Mongolia

India will acquire a coking coal mine in Mongolia to reduce dependency on highly priced Australian coking coal, according to media reports.
 
According to local Indian news reports, an Indian delegation led by C.S. Verma, chairman of state-owned domestic steel producer Steel Authority of India (SAIL), is expected to sign a memorandum of understanding with the Mongolian government for allocation of a coking coal mine.
 
India is proposing to build the first steel plant in Mongolia, in return for the mine allocation. Mr. Verma stated that they will feed the steel plant to be built with coal volumes from the Mongolian mine, while the surplus will be sent to India.
 
India imports 35 million mt of coking coal every year, 60-70 percent of which comes from Australia, while the rest comes from the US and New Zealand.