OfBusiness Coal Dailies

9th June’23

Price

• Prices remain stable. Prices at Navlakhi port of Grade 3600 GAR is Rs 5900/MT ($72), Grade 3800 GAR is Rs 6700/MT ($83), Grade 4800 GAR is Rs 7500/MT ($92), Grade 5400 GAR is Rs 9700/MT ($117) and at Kandla port of Grade 4600 GAR is Rs 7800/MT ($96), Grade 6000 GAR is Rs 11000/MT ($135).
• Australian coal price at Krishnapatnam port is Rs 12900/MT ($157) and at Gangavaram port is Rs 15200/MT ($185).
• South African RB3 coal price at Ennore port is Rs 9800/MT ($120). All prices are exclusive of GST.

Demand and Supply

• Production of coal and other minerals increased significantly on the back of reforms taken by the government in the coal and mining sectors. The revenue of Odisha from coal and other minerals increased multi-fold to Rs 50,000 crore in 2021-22, from Rs 5,000 crore in 2015-16.
• In the 7th round of coal auctions, a total of 106 coal mines were put on the block, 61 blocks are partially explored and 45 mines are fully explored. As many as 95 non-coking coal mines, 10 lignite mines and one coking coal mine are being offered in the latest round of auction.

News

• The Ministry of Coal issued vesting orders for 22 auctioned coal blocks, which are expected to attract a capital investment of Rs 7,929 crore.
• The mines are also expected to generate annual revenue of Rs 9,831 crore and generate around 71,467 direct and indirect job opportunities, the ministry said. Out of the 22 coal mines, 11 mines are under the Coal Mines (Special Provisions) Act, 2015, and the rest comes under Mines & Minerals (Development and Regulation) Act, 1957.
• A total of 16 coal mines are fully explored mines while six mines are partially explored ones, the ministry added. The cumulative peak rated capacity (PRC) of 22 coal mines is 53 million ton per annum (MTPA) and has approximately 6,379.78 million tons (MT) of geological reserves.

OFB’s Opinion

• With CIL’s plans to expand their mining operations, the production of coal is expected to increase significantly. This will enable industries to purchase larger quantities to meet the high demand during the summer months for the power sector. Despite the downward trend in the market, prices are predicted to remain stable.