India classified coking coal as a critical mineral, a decision aimed at accelerating exploration and boosting supply, aiding the steel industry.
The measure should spur mining by removing regulatory barriers including mandatory public consultations, the government said in a statement. It will also permit the use of degraded forest land for “compensatory afforestation,” the practice of planting trees when woodland is diverted for mining.
About 95% of the coking coal used in the country’s steel sector currently comes from overseas. The commodity is also sometimes used for power generation, despite being more expensive than thermal coal. India has renewed its focus on the dirtiest fossil fuel as part of an energy strategy that prioritizes national security and economic development.
“Coking coal in India has unfortunately often been used for thermal generation purposes,” said Rohit Chandra, assistant professor of public policy at the Indian Institute of Technology in Delhi. The government’s move may “nudge” the steel industry to use more domestic coal, he said Thursday.
The new classification should help reduce coal imports, strengthen the resilience of steel’s supply chain and attract more private businesses to the mining industry, the government said in the statement.
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