India‘s state-owned Steel Authority of India (SAIL) and NMDC Ltd are exploring acquisitions of coking coal assets in Russia as New Delhi seeks to secure supplies of critical raw materials, Indian sources said.
The world’s biggest producer of crude steel after China, India sent a delegation to Russia last month for preliminary talks with government and industry executives, said the three sources familiar with the matter.
They sought anonymity because the talks were confidential.
“Both SAIL and NMDC are exploring sourcing of raw materials and are in talks with Russia,” one of the sources said, adding that SAIL had set up an internal panel to study the issue.
India is also looking to boost imports of nickel from Russia, two Indian sources and a Russian source said. Initial talks between the two sides were held in New Delhi in April, the two Indian sources said.
India’s steel ministry, SAIL and NMDC did not respond to Reuters emails seeking comment on talks with Russia for mineral assets and raw materials. Russia’s energy ministry did not immediately respond to queries.
India currently imports nickel from China, Japan, Norway and the United States, among other countries, and only very small quantities from Russia.
Nickel is critical to India’s electric vehicle supply chain, especially for batteries. New Delhi aims for electric vehicles to account for 30% of cars and 80% of two-wheelers by 2030, up from about 6% and 9% now.
The metal is also used in making stainless steel.
India is seeking to secure supplies of key raw materials as it boosts steel output and speeds its transition to cleaner energy.
In January, the government designated coking coal a critical and strategic mineral on the grounds of India’s import dependence.
It said, it also wanted to secure stable supplies of other key raw materials such as lithium, cobalt and rare earths.
India now fills more than half its coking coal requirements from Australia, and the rest from countries such as Russia and the United States.
NMDC has been evaluating overseas coking coal assets for some time. Last year, its chairman said the miner was exploring opportunities in Australia and Indonesia.