The Russian mining and steel producing group Mechel has confirmed to SteelOrbis its plans to set up a new coke plant in India.
The new plant will be either independently owned by Mechel or will be in the form of joint venture with an Indian domestic partner in which Mechel will own a controlling stake. Currently, Mechel is carrying out talks with a number of Indian companies regarding the project.
Mechel plans to invest hundreds of millions of US dollars in the realization of this project.
The new coke plant is to be established with the purpose of satisfying the needs of the Indian domestic market for metallurgical coke. According to Mechel, India plans to double its steel production in the next couple of years, and scarcity of coking coal and metallurgical coke in the country will only increase. Taking into account the rising freight rates for coking coal from Australia and the fact that Mechel has its own coking coal reserves and also owns a freight company along with Trading Port Posiet in Russia's Primorye region, the group has a strategic advantage and a high potential for entry into the Indian domestic market.
As feedstock for its proposed coke plant, Mechel plans to supply up to 10 million mt of coking coal annually to India.