India’s JSW Steel Limited has received a letter of intent (LoI) from Bharat Coking Coal Limited (BCCL), an operational wholly owned subsidiary of government-run Coal India Limited (CIL) appointing it as developer and operator of the Dugda Coal Washery located in eastern state of Jharkhand, for 25 years, a JSW Steel Limited statement said on Monday, March 31.
JSW Steel Limited will have a firm linkage of 2 million mt per year for coking coal and other washery products.
Further, JSW Energy (Utkal) is the consortium partner, which will consume by-products from the washery, which will be sold to them at market-linked prices.
JSW Steel intends to establish domestic coking coal security and linkages by acquiring mines under auction and setting up or acquiring washeries. The company is in the process of commissioning three coking coal mines in India, which will provide coking coal at a lower cost as compared to imported coking coal, it said in the statement.