Coking coal imports from Australia to double by 2012

The country's coking coal import from Australia is set to double by 2012, according to Michael Moignard, senior trade commissioner of Australian Trade Commission.

"India's import of coking coal from Australia, which was 12 million tonnes in 2006-07 is set to grow to 25 million tonnes by 2012. The growth in imports is due to surging demands as a number of steel plants are set to come up in the country," Moignard told Business Standard on the sidelines of a trilateral mining seminar held in the city.

Some Australian companies are keen on manufacturing mining and industrial equipment in India with the objective of reducing cost and making the country their sourcing hub for exporting these equipment to China, South-East Asia and the West Asia, he added.

Moignard indicated Australia backed the strategy to revive Coal India Limited (CIL)'s underground mines, adding that some Australian companies could offer technology for greater safety in deep mining.

On the issue of acquisition of coal assets in Australia by Indian companies such as CIL, Steel Authority of India Limited (SAIL) and National Thermal Power Corporation Limited (NTPC), Moignard said that state development agencies in Australia would act as facilitators for the acquisition process.

Apart from this, he said, the agencies would also help the Indian companies in site identification and provide basic amenities such as water, electricity and telecommunication services.

The Indo-Australian bilateral trade which stood at $14 billion in 2006-07 is poised for a 30 per cent year-on-year growth, Moignard said.

He said that more relaxed FDI norms, greater mining leases for overseas companies coupled with more guarantee on these leases could boost Australian investment in India.