May 20, 2010, 12:02 AM EDT
By Simon Lomax
May 20 (Bloomberg) -- India may import close to 100 million metric tons of coal this year to meet growing demand for the fuel from power plants, Partha Bhattacharyya, chairman of Coal India Ltd., said in Washington.
The total tonnage of coal imported for the year ending March 31, 2011, “should be around 100 million,” Bhattacharyya said in an interview yesterday. He said it wasn’t an official projection of India’s government.
The construction of new power plants and an expansion of India’s steel-making industry could triple coal imports from their 2007 level by 2030, the U.S. Energy Information Administration predicted last year. Provisional data for the year ended March 31 put India’s imports at 81 million tons, the chairman of the state-owned producer said. In 2009, imports totaled 59 million tons, he said.
“Power generation is what is driving the demand,” Bhattacharyya said. New coal-fired power plants, ranging in size from 660 megawatts to 4,000 megawatts, are being built throughout India, he said.
South Africa has already cut back coal shipments to Europe and boosted deliveries to Asia as India and China’s economies recover from last year’s slowdown, according to mjunction Services Ltd., a web-based trader backed by India’s biggest steel producers.
Coal India revised down its output target in March, saying it planned to produce 486 million tons by 2012, lower than the 520 million tons previously expected. Bhattacharyya said the company aimed to produce 460 million tons in the fiscal year ending March 31.
Strategic Partnerships
Currently, Coal India pays spot market rates for coal imports. The company may spend $1.7 billion on “strategic partnerships” with five mines in the U.S., Australia and Indonesia to get a better price on imported coal, Bhattacharyya said. The proposed deals represent about 280 million tons of coal over 10 years, he said.
Bhattacharyya, who was in Washington to meet with U.S. mining industry representatives and Energy Department officials, declined to name the companies whose proposals are under review. The final decision from India’s government is expected by late June or mid-July, he said.
News on Coal India: COAL IN CN Top environment stories: GREEN Stories about U.S. and climate: TNI US CLIMATE Global emissions data: EMIS Northeast U.S. trading: RGGI
Source: http://www.businessweek.com/news/2010-05-20/india-coal-imports-may-rise-to-100-million-tons-on-power-demand.html
By Simon Lomax
May 20 (Bloomberg) -- India may import close to 100 million metric tons of coal this year to meet growing demand for the fuel from power plants, Partha Bhattacharyya, chairman of Coal India Ltd., said in Washington.
The total tonnage of coal imported for the year ending March 31, 2011, “should be around 100 million,” Bhattacharyya said in an interview yesterday. He said it wasn’t an official projection of India’s government.
The construction of new power plants and an expansion of India’s steel-making industry could triple coal imports from their 2007 level by 2030, the U.S. Energy Information Administration predicted last year. Provisional data for the year ended March 31 put India’s imports at 81 million tons, the chairman of the state-owned producer said. In 2009, imports totaled 59 million tons, he said.
“Power generation is what is driving the demand,” Bhattacharyya said. New coal-fired power plants, ranging in size from 660 megawatts to 4,000 megawatts, are being built throughout India, he said.
South Africa has already cut back coal shipments to Europe and boosted deliveries to Asia as India and China’s economies recover from last year’s slowdown, according to mjunction Services Ltd., a web-based trader backed by India’s biggest steel producers.
Coal India revised down its output target in March, saying it planned to produce 486 million tons by 2012, lower than the 520 million tons previously expected. Bhattacharyya said the company aimed to produce 460 million tons in the fiscal year ending March 31.
Strategic Partnerships
Currently, Coal India pays spot market rates for coal imports. The company may spend $1.7 billion on “strategic partnerships” with five mines in the U.S., Australia and Indonesia to get a better price on imported coal, Bhattacharyya said. The proposed deals represent about 280 million tons of coal over 10 years, he said.
Bhattacharyya, who was in Washington to meet with U.S. mining industry representatives and Energy Department officials, declined to name the companies whose proposals are under review. The final decision from India’s government is expected by late June or mid-July, he said.
News on Coal India: COAL IN
Source: http://www.businessweek.com/news/2010-05-20/india-coal-imports-may-rise-to-100-million-tons-on-power-demand.html
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