SAIL and NMDC are exploring acquisitions of coking coal assets in Russia as India seeks to secure critical raw material supplies for its steel sector.
India is also looking to diversify nickel sourcing from Russia, a key mineral used in electric vehicle batteries and clean-energy technologies.
The move is part of a broader strategy to reduce dependence on traditional suppliers and support India's steel production and energy-transition goals.
SAIL, NMDC Explore Russian Coal Mines Amid Raw Material Push
India is exploring coking coal and nickel opportunities in Russia as it seeks to secure critical raw materials needed for steel production, infrastructure expansion, and the clean energy transition
SAIL, NMDC Explore Russian Coal Mines Amid Raw Material Push
Summary
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State-owned Steel Authority of India Ltd (SAIL) and NMDC Ltd are exploring acquisitions of coking coal assets in Russia as India seeks to secure supplies of critical raw materials for its steel industry, Reuters reported, citing sources.
According to the report, India sent a delegation to Russia in May for preliminary discussions with Russian government officials and industry executives.
"Both SAIL and NMDC are exploring sourcing of raw materials and are in talks with Russia," one of the sources told Reuters.
The report added that SAIL has constituted an internal panel to study the potential opportunities and assess developments related to sourcing coking coal from Russia.
Beyond coal, India is also looking to diversify its nickel imports by increasing supplies from Russia. Initial discussions on the matter were held in New Delhi in April. At present, India sources nickel primarily from countries such as China, Japan, and the United States, while imports from Russia account for only a small share.
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Push for Energy Transition
As India accelerates its clean energy transition, securing supplies of critical minerals has become a strategic priority. Nickel plays a crucial role in the electric vehicle (EV) ecosystem, as it is a key component in the production of advanced EV batteries.
India aims to increase the share of electric vehicles to 30% of passenger cars and 80% of two-wheelers by 2030. Currently, EV penetration stands at around 6% for cars and 9% for two-wheelers, according to the report.
At the same time, New Delhi is actively seeking to diversify supplies of raw materials used in steelmaking as it looks to expand domestic steel production to support infrastructure growth and the energy transition.
Earlier this year, the Centre designated coking coal as a critical and strategic mineral. India remains heavily dependent on imports, with Australia supplying more than half of the country's coking coal requirements, followed by Russia and the United States.
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Meanwhile, NMDC has also been evaluating overseas coking coal assets. NMDC Chairman Amitava Mukherjee recently said the company was exploring opportunities in Australia and Indonesia.
"They (the explorations) are in different stages of negotiations," Mukherjee said, without disclosing further details.