India Designates Coking Coal as Critical Mineral to Boost Domestic Production
In a significant move aimed at reducing import dependence, the Indian government has officially notified coking coal as a critical and strategic mineral. This decision, announced on Thursday, seeks to accelerate exploration and mining activities across the country, including for deep-seated deposits that have remained largely untapped.
Strategic Move to Address Rising Import Demand
Despite India possessing substantial domestic reserves estimated at approximately 37.4 billion tonnes, the demand for imported coking coal has been steadily increasing. Official data reveals that imports rose from 51.2 million tonnes in 2020–21 to 57.6 million tonnes in 2024–25, meeting nearly 95% of the steel sector's requirements. This growing reliance on foreign sources has prompted the government to take decisive action.
Policy Recommendations and Implementation
The notification follows recommendations from the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog. These bodies recognized the strategic importance of coking coal in ensuring mineral security and supporting the domestic steel industry. As a result, coking coal has been included in Part D of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957, which specifically lists critical and strategic minerals.
Key Benefits and Regulatory Changes
This reclassification brings several important advantages:
- Exemption from public consultation requirements for mining projects, streamlining the approval process.
- Permission to use degraded forest land for compensatory afforestation, facilitating land access for mining activities.
- Expected encouragement of greater private sector participation in exploration and mining ventures.
Geographical Distribution of Resources
India's coking coal resources are primarily concentrated in Jharkhand, with significant deposits also found in:
- Madhya Pradesh
- West Bengal
- Chhattisgarh
These regions are now poised to see increased mining activity as the government pushes for domestic production.
Expected Outcomes and Industry Impact
The reform is anticipated to deliver multiple benefits across the steel and mining sectors:
- Reduced import dependence for coking coal, enhancing supply-chain resilience.
- Support for the objectives outlined in the National Steel Policy.
- Promotion of private investment in exploration and beneficiation processes.
- Encouragement of advanced mining technologies adoption.
- Generation of employment opportunities across mining, logistics, and steel value chains.
This strategic designation represents a crucial step toward strengthening India's self-reliance in critical mineral resources while supporting the growth and competitiveness of the domestic steel industry.
