Coal India Makes Move Into Iron Ore In Diversification Push

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessCoal India Makes Move Into Iron Ore In Diversification PushCoal India Ltd. is set to start mining iron ore as the world’s biggest coal producer diversifies its core business and reduces dependence on the dirtiest of fossil fuels.Author of the article:Preeti Soni and Rajesh Kumar Singh You can save this article by registering for free here. Or sign-in if you have an account.h12kf[p2umk0s}l]cwow1ij3_media_dl_1.png Ministry of Coal, India(Bloomberg) — Coal India Ltd. is set to start mining iron ore as the world’s biggest coal producer diversifies its core business and reduces dependence on the dirtiest of fossil fuels.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe state-run company has been declared the preferred bidder for an iron ore block in the eastern Indian state of Odisha, it said in a statement to the exchanges. The Gadadharpur block has estimated total resource of 288 million tons, it said in the filing. Coal India is expanding into mining of other minerals and generate green power as India inches closer to achieving net zero emissions by 2070. The company has already won a graphite block in central India.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againOver the last six years, the Kolkata-based firm has secured approvals of its shareholders to foray into new businesses — including mining of critical minerals, such as lithium and cobalt, producing hydrogen and making energy storage batteries.“The headroom for growth in coal is getting limited with expansion of renewables,” said Rupesh Sankhe, senior vice president for research at Elara Capital India Pvt. “It’s therefore prudent for the company to harness its expertise in mining and deploy cash into new strategic areas for future growth.”Growing competition from smaller miners is also eating into Coal India’s market share. The company’s contribution to India’s total output declined by about 10 percentage points to 74% in the year through March, government data showed.Meanwhile, demand for the iron and steel raw material is expected to explode in the South Asian nation, which has set a target to more than double steel production capacity to 500 million tons by 2047.India’s biggest steelmakers are investing billions of dollars to expand output as consumption soars in one of the world’s fastest growing economies, led by infrastructure building. The burgeoning steel capacity may lift India’s iron ore imports fourfold to 40 million tons by 2035, according to industry consultancy Wood Mackenzie.Coal India’s entry will be beneficial for the steelmakers as well, said Dhruv Goel, Chief Executive Officer of commodity intelligence firm BigMint, adding that supplies are generally assured if a state-owned firm is operating the mine.The company has been battling high levels of unsold coal inventories since last year, and even though the fuel accounts for most of the nation’s electricity generation, its share in the country’s total power output has continued to shrink with the expansion of renewables. Annual shipments growth may slow down to about 3% over the next four to five years, Sankhe said.The coal miner has one year to fulfill some conditions to be declared as successful bidder for the block and another three years for the execution of the mining lease, it said in the exchange filing.(Updates with chart and comments in 5th and 9th paragraphs.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.