Coking Coal Notified as a Critical & Strategic Mineral

In News: The Government of India has notified Coking Coal as a Critical and Strategic Mineral by including it in Part D of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957.

What does this Notification Mean?

• Coking coal has been shifted from the general coal category to a high-priority strategic category.
• It grants the mineral special legal and regulatory status, enabling:
• Faster approvals and clearances,
• Improved ease of doing business,
• Accelerated exploration and mining, including deep-seated deposits.

Legal and Institutional Framework

Governing Law

• Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act)

Key Legal Provisions Used

• Section 11C: Empowers the Central Government to notify critical and strategic minerals.
• Section 11D(3): Ensures that royalties and auction premiums accrue to State Governments, even when auctions are conducted by the Centre.

Strategic Rationale Behind the Move

1. Import Dependence & Forex Drain

• India imports nearly 58 million tonnes of coking coal annually.
• Around 95% of the steel sector’s requirement is met through imports, leading to significant foreign exchange outgo.

2. Steel Sector Vulnerability

• Coking coal is indispensable for the blast furnace route of steelmaking.
• The notification supports the National Steel Policy target of 300 MT steel production by 2030, shielding it from global supply shocks and price volatility.

3. Exploration of Deep-Seated Deposits

• Strategic status encourages:
• Private sector participation,
• Advanced exploration technologies,
• Faster development of difficult geological reserves.

About Coking Coal

What is Coking Coal?

• Also known as Metallurgical Coal, it is a specific grade of bituminous coal.
• When heated in the absence of oxygen, it converts into coke, a hard and porous material essential for steelmaking.

Why is it Critical for Steel?

• Acts as:
• A fuel,
• A reducing agent (removes oxygen from iron ore),
• A structural support in blast furnaces.

India and Coking Coal: The Paradox

Resource Availability

• Estimated reserves: ~37.37 billion tonnes
• Major belts:
• Jharkhand (Jharia, Bokaro),
• West Bengal, Chhattisgarh, Madhya Pradesh

Key Challenges

• Insufficient domestic production.
• High ash content in Indian coking coal.
• Legacy mining issues:
• Underground fires,
• Land subsidence.
• Limited geological data and land acquisition hurdles.
• Inadequate coal washing (beneficiation) capacity.

Government Initiatives to Address Constraints

1. Mission Coking Coal
2. 100% FDI under automatic route in commercial coal mining
3. Revenue-sharing auction model
4. First Mile Connectivity (FMC) Projects (39 projects)
5. Emphasis on coal beneficiation and technology adoption