# Coal mining and Coking coal Coking coal is the premium product of coal mining, dug from specific seams and washed to steelmaking grade; India mines about 67 Mt but its coal is high in ash, so it imports about 90% of its metallurgical coal and is pushing to reach 140 Mt of domestic output by 2030. Source page: https://www.materialinsights.org/links/coal-mining-and-coking-coal/ [Coal mining](https://www.materialinsights.org/energy/e_coal_mining/) (energy) and [Coking coal](https://www.materialinsights.org/energy/coking_coal/) (energy): 3 relationships. ## How they are linked ### 1. Mined for steelmaking *Physical flow · Strong · Coking coal flows through coal mining* All coking coal comes out of coal mines, from seams with the right properties to form coke, and goes on to coke ovens for blast furnaces. - **100%** of coking coal energy passing through coal mining (site model) - **66.8 Mt** India's raw coking coal output, FY2023-24 - **140 Mt** Mission Coking Coal target for domestic raw coking coal by FY2029-30 Raw coking coal must be washed to cut its ash before it is usable for steel, so washeries matter as much as mines in India: three new washeries with 11.6 Mt a year of capacity have been commissioned. Coal India subsidiaries aim to raise output from about 60 Mt to about 105 Mt by 2029-30, and 14 blocks auctioned to private firms had not started producing by the end of 2024. Sources: [Ministry of Coal, Government of India](https://coal.gov.in/sites/default/files/2024-12/PIB2083140.pdf); [Material Insights (Energy Institute, IEA data)](https://www.materialinsights.org/energy/) ### 2. Import dependence *Geography and ownership · High in India · India imports most of its coking coal* Most Indian coal reserves are too high in ash for steelmaking, so domestic mining cannot meet demand and steelmakers import premium coal, mainly from Australia. - **about 90%** of India's metallurgical coal needs met by imports - **62.6 Mt** India's coking coal imports, 2025 - **58.8 Mt** India's coking coal imports, FY2023-24 Imports rose about 10% in 2025 as steel output grew. Australia leads premium hard coking coal supply, while Russia supplied more than 14 Mt of India's 21 Mt of PCI coal, so Australian supply conditions weigh heavily on Indian steel costs. Sources: [Ministry of Coal, Government of India](https://coal.gov.in/sites/default/files/2024-12/PIB2083140.pdf); [GMK Center (BigMint data)](https://gmk.center/en/news/india-increased-its-imports-of-coking-coal-by-10-y-y-in-2025/); [Down To Earth](https://www.downtoearth.org.in/energy/indias-steel-sector-90-energy-import-dependent-with-64-of-new-capacity-coal-based-ieefa) ### 3. Price link: proxy only *Cost and price · Moderate · Both ways* The site prices coking coal with the Australian thermal coal series, so this correlation reflects thermal coal and adds little about coking coal itself. - **0.09** monthly change correlation - **0.48** 12-month change correlation - **1 month** lag at which the link is strongest Coking coal trades at a premium to thermal coal and is set by its own benchmark, Australian premium hard coking coal. Treat the weak figures here as a data limitation, not evidence that the two are unrelated. Sources: [Material Insights (World Bank, FRED, IMF data)](https://www.materialinsights.org/energy/coking_coal/correlation/) ## For investors ### Key learnings 1. Coking coal is a scarce subset of coal output: India mines about 67 Mt but imports about 90% of its metallurgical coal needs. 2. Domestic growth depends on new mines and washeries; the 140 Mt by 2030 target needs 14 private blocks that had not started producing by the end of 2024. 3. Indian steel costs follow Australian premium coking coal, not domestic thermal coal prices. ### What to track - **Premium hard coking coal price (FOB Australia)**: Sets the marginal cost of blast-furnace steel in India (Daily · Platts, Argus, exchange futures) - **India coking coal imports by source**: Rising shares from Russia or the US show diversification (Monthly · DGCIS, BigMint) - **Domestic raw and washed coking coal output**: Measures progress on Mission Coking Coal (Monthly · Ministry of Coal) ## For policymakers ### Key learnings 1. India's steel expansion is deepening reliance on imported coking coal, about 90% of metallurgical coal needs, which is an energy security issue. 2. Washeries are as important as mines, because high-ash Indian coking coal must be cleaned before use. 3. Diversifying import sources and building domestic washeries reduces exposure to Australian supply shocks. ### What to track - **Mission Coking Coal output versus the 140 Mt target**: Shortfalls mean higher imports (Annual · Ministry of Coal) - **Washery capacity commissioned (Mt a year)**: Sets how much domestic coal reaches steelmaking grade (Annual · Ministry of Coal, Coal India) ## India India produced 66.8 Mt of raw coking coal in FY2023-24 and imported 58.8 Mt, rising to 62.6 Mt in 2025; Mission Coking Coal targets 140 Mt of domestic output by FY2029-30. ## Sources 1. [Ministry of Coal: coking coal production, imports and Mission Coking Coal (PIB release)](https://coal.gov.in/sites/default/files/2024-12/PIB2083140.pdf), Ministry of Coal, Government of India (2024) 2. [India increased its imports of coking coal by 10% y/y in 2025](https://gmk.center/en/news/india-increased-its-imports-of-coking-coal-by-10-y-y-in-2025/), GMK Center (BigMint data) (2026) 3. [India's steel sector 90% energy import-dependent, with 64% of new capacity coal-based: IEEFA](https://www.downtoearth.org.in/energy/indias-steel-sector-90-energy-import-dependent-with-64-of-new-capacity-coal-based-ieefa), Down To Earth (2026) 4. [Price correlation, Material Insights](https://www.materialinsights.org/energy/coking_coal/correlation/), Material Insights (World Bank, FRED, IMF data) 5. [Energy flows, Material Insights](https://www.materialinsights.org/energy/), Material Insights (Energy Institute, IEA data)