Coking Coal as Critical and Strategic Mineral

Context

The Government of India has notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957.

About the Notification

• • The decision is based on the recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog, recognising the strategic importance of coking coal for mineral security and the domestic steel sector.
  • Under Section 11C of the MMDR Act, the First Schedule has been amended to explicitly include coking coal as a Critical and Strategic Mineral.
  • Coking coal has been explicitly included in Part D (Critical and Strategic Minerals) of the First Schedule of the MMDR Act.
    • Mining of critical minerals is exempt from public consultation requirements.
    • Use of degraded forest land for compensatory afforestation is permitted.
    • Faster approvals and simplified regulatory processes are enabled to promote exploration and mining.

• Expected Benefits

• • The reform is expected to reduce import dependence and strengthen supply-chain resilience for the steel sector.
  • It will support the objectives of the National Steel Policy by ensuring the availability of a key raw material.
  • The notification is likely to attract private investment in exploration, beneficiation and adoption of advanced mining technologies.
  • It is also expected to generate employment across mining, logistics and steel value chains.

About Coking Coal

• • Coking coal is a high-grade variety of coal used primarily in the manufacture of coke, a key input for steel production through the blast furnace route.
  • It has low ash, low moisture and low sulphur content with strong caking properties.
  • When heated in the absence of air, it softens, swells and solidifies into porous coke capable of withstanding high temperatures and pressure inside a blast furnace.
  • Unlike thermal coal, which is used for electricity generation, coking coal is used as a raw material in metallurgy, especially iron and steel making.

• Coking coal is converted into coke, which acts as:

• • A fuel providing heat
  • A reducing agent to remove oxygen from iron ore
  • A structural support allowing gases to circulate inside the blast furnace
• Global distribution: Major producers include Australia, China, Russia, the United States and Canada.
  • Australia is the world’s largest exporter of coking coal.
• Distribution in India: India has an estimated 37.37 billion tonnes of coking coal resources, mainly in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal and Chhattisgarh.
  • Despite domestic availability, imports increased from 51.20 million tonnes (2020–21) to 57.58 million tonnes (2024–25).
  • Currently, nearly 95% of the steel sector’s coking coal requirement is met through imports, resulting in high foreign exchange outgo.

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