Cabinet approves MoU with Russia on coking Coal

Union Cabinet chaired by Prime Minister Narendra Modi approved a Memorandum of Understanding (MoU) between India and Russia on cooperation in coking Coal. Coking coal is used for Steel making. MoU was signed between Ministry of Steel (India) and Ministry of Energy (Russia).

Benefits of MoU

  • MoU will benefit entire steel sector by reducing their input cost.
  • It will reduce cost of steel and promote equity & inclusiveness.
  • An institutional mechanism for co-operation in coking coal sector will also be provided by MoU.

Objective of MoU

MoU was signed with the objectives of strengthening cooperation between India and Russia in steel sector. The activities involved in cooperation aims to diversify source of coking coal.

What is Coking Coal?

Coking coal, also known as Metallurgical coal, is a grade of coal which can be used to produce good-quality coke. Coke is an essential fuel and reactant in the process of blast furnace for primary steelmaking. Demand for coking coal is highly coupled to demand for steel. Primary steelmaking companies also comprises of division producing coal for coking in order to ensure a stable and low-cost supply.

Where does it come from?

Coking coal comes mainly from Canada, United States, and Australia.

Characteristics of Coking coal

This coal has low content of ash, moisture, sulphur and phosphorus. It is usually ranked as bituminous. Such coal produces strong, low-density coke when it is heated under low-oxygen environment. Strength and density of coke are particularly important while using it in blast furnace because coke supports part of ore and flux burden inside furnace. Coking coal is different than thermal coal because thermal coal does not produce coke when heated.

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