煤矿铁矿及钢材市场趋势和挑战

Coal,ironoreandsteel

-emergingtrendsand

challenges

January2023

FIMI

Contents

ForewordfromFIMI04

ExecutiveSummary06

1.Introductorysection08

1.1Coal09

1.1.1Overviewofcoal

1.1.2.Globaloverviewofcoalindustry

1.1.3.Indianoverviewofcoalindustry

1.1.4.Challenges

1.1.5.Whatistobedone

15

1.2Ironore

1.2.1Overviewofironoreindustry

1.2.2.Globaloverviewofironoreindustry

1.2.3.Indianoverviewofironoreindustry

1.2.4.Challenges

1.2.5.Whatistobedone

1.3Steel19

1.3.1Overviewofsteel

1.3.2.Globaloverviewofsteelindustry

1.3.3.Indianoverviewofsteelindustry

1.3.4.Challenges

1.3.5.Whatistobedone

2.ExternaleffectsanddevelopmentsintheIndianindustry28

3.Emergingtechnologyandhowtheyaddresschallenges32

3.1Coal33

3.2Ironore34

3.3Steel35

3.4Theinnovation38

4.SummaryandWayforward40

ForewordfromFIMI

SumitDeb

President,FIMIandCMD,

NMDCLimited

Coal,ironoreandsteelarecriticalforcontinuedeconomicdevelopmentandarethebackboneofglobalsustainableinitiatives,includingenergytransition.Today,thesteelindustryisoneoftheworld’smostenergyintensive,accountingforaround8%to9%ofglobalcarbondioxideemissions.Forsteelmakers,reducingemissionsandspecificenergyconsumptioniscriticalastheglobaldecarbonizationagendaspeedsup.

Thesteelsectorreliesontheavailabilityofresourceslikeironore,coking/metallurgicalcoal,steelscrapandpower.Indiahasadequateironorereserves,andutilizationofironorefinesandlow-gradeironoreisakeydeterminantforthesuccessoftheindustry.Indiadoesnothavesufficientreservesofcoking/metallurgicalcoalandisdependentonimportedcokingcoalwhicharesubjecttowidepricefluctuation.

CokingcoalreservesinIndiastandsat34.5billiontonshoweveritisnotofadequatequalitytoformgoodcokingcoalonaccountofhighimpurities.Withatargetedproductionof300milliontonsofsteelby2030,thedemandforcokingcoalisexpectedtoriseto161milliontons.Tokeeptheindustrygloballycompetitive,Indiawillmaximizetheuseofitsdomesticreservesandwillneedcokingcoalforreducingironoretoiron.

TheIndiansteelindustryisfacingchallengesonmultiplefrontsrelatingtoresourceutilization

whichincludeslimitedavailabilityofhigh-

gradeoreandcokingcoal,overcapacities,and

energyefficiencies.Thesteelsectoremploys

hightemperaturefurnacesforironandsteel

production,whichhasbecomethesecond

largestenergyconsumerintheindustry.The

increasinginternationalfocusonemissionsand

de-carbonizationhasledtotheimminent

requirementtodoubledownonoptimizing

resourceutilizationintheproductionofsteel.The

industryhasundertakenmultipleinitiativesaimed

atoptimizingtheconsumptionofcriticalresources

andreducingwastageacrosstheironandsteel

valuechain.

Whiletherearenumberofinitialstepsthathave

beenundertakenbymajorIndiansteelplayers

forR&D,policyinterventionbygovernmentand

industry-usercollaboration,thereisapersistent

needtonotonlyhavesustainedR&Dinvestment

byIndiansteelcompaniesbutalsoengage

anddevelopadeeperlevelofcollaboration

acrossdifferentstakeholderswithinthesteel

ecosystem.Digitalizationoftheseindustriesinan

integratedholisticfashionwillfurtherimprovethe

operatingefficiencyandqualityandreducethe

operatingcost.

Wealsopresentviewontheoptionsavailableto

industryplayerstomeetthelong-termtargetsof

carbonneutrality.Asafirststep,awell-planned,

stagegatedroadmap/pathwayswillbecriticalfora

successfulsetup.

4Coal,ironoreandsteel—emergingtrendsandchallenges

Allsuchpathwayswillrepresentaninformedchoiceofcleantechnologieswhilebalancingbusinessrisk,qualityofendproductandcapitalcostwhileimprovingsustainabilitymetricsacrossthevaluechain.

Stakeholderslikegovernments,theUN,academia,communities,andsteelassociationsarelikelytoplayanimportantroleinsupportingtheimplementationstrategiesofindustryplayers.Otherthancarbonpricingmechanisms,governmentwillneedtoprovidesupportforR&Dandfinancestoencourageandcatalysechange.

India’seconomyisthefifthlargesteconomyintheworld,surpassingtheUKeconomyin2022.AccordingtotheWorldBankforcasts,India’seconomymaygrowto6.9%and6.7%in2023and2024,respectively.AccordingtoChiefEconomicAdvisor,India’seconomyisexpectedtobe$7trillionanditwouldbethirdlargesteconomy.

WhileserviceswillbeakeygrowthdriveroftheGDPforIndia,coal,ironoreandsteel,sourcedforformationofrail,road,ports,airports,irrigation,energy,housing,mining,oilandgasandcreatingcapacityformanufacturing,construction,miningwillbethecornerstoneofsettingthefoundationsofimmediateandlong-termsustainabilityofmeetingGDPgrowthtargetsofthefuture.

Withthegovernmenthelpinginprovidingsupport

totheseindustryforrapidgrowththroughpolicy

formulationandstrictgovernanceonmeeting

executionofthose,industryplayershavetoplay

theirpartindemonstratingdisciplineofcapital

spendsandforesightoninvestmentintheright

technologiesforexpansion.thegovernmentand

theindustryplayerswouldneedtoworkinsync

toexecuteexistingstrategicplan,updateitbased

onemergingissuesandopportunitieswhich

areuniqueandrelevanttoIndia,anddrawupa

collaborativegameplantonurturethefutureofa

robustandasustainableindustry.

FIMIandEYhavecreatedthisjointreportafter

analysingthechallengesimposedbyrawmaterials

likeironoreandcoalonthesteelindustry.Nearly

threetonsofrawmaterialareneededinformof

ironoreandcoketoproduceonetonofSteel.

Therefore,targetproductionof300MTofsteel

by2030willentailrawmaterialmovementofover

900MT.Thisindicatesthehighdependenceofthe

steelindustryonrawmaterials.Thus,thereisa

strongneedtoensureuninterruptedsupplyofraw

materialandsoon.

Wehopeyouenjoyreadingthereport.

Coal,ironoreandsteel—emergingtrendsandchallenges5

Summary

Executive

ThemineralresourcessectorhasthepotentialtocontributesignificantlytotheachievementoftheSustainableDevelopmentGoals(SDGs)throughsocio-economicbenefits,foreignexchangeearnings,employmentandlivelihoods,developmentofinfrastructure,communication,provisionofvitalservices,andsupplyofrawmaterialsforgreentechnologies.

Beingapartofthesector,theminingandmetalscompanieshavetodealwithmanyvariablefactors,includingrisingESGandsocietalexpectations,decarbonizationofvaluechains,geopoliticalrisks,digitaltransformation,anduniquechallengestoportfolioandcapitalinvestmentdecisions.Dueto

cumbersomestatutoryclearancerequirements,theminingsectorfacespenalconsequences,andthatleadstoorganizationalinefficiencies.Thepast12monthshavewitnessedhugeupheavalandchange.WarinUkraine,climateevents,newgovernmentsinkeyminingregionsandshiftingrelationshipsinothersareallimpactingtheworld’sminingandmetalscompanies.CoalandironorearekeydrivingfactorsoftheminingsectorinIndia.

Coalisthelargestenergysourcegloballyforelectricitygenerationandforproducingiron,steelandcement.Thecoalindustryplaysanessentialroleinacceleratingindustrializationandurbanization,asitprovidesfueltomeetthegrowingdemandforresources.Inaddition,itcontributestoincreasedforeigncapitalinvestment,exports,andemployment,keyfactorsinsocio-economicdevelopment.

AccordingtoIEA,globalcoalproductionisexpectedtobe8.3billiontonsin2022,anewall-time-highandwellabovetherecordsetin2019.Thereboundgrowthtrajectoryforglobalcoalproductionisexpectedtoreachapeakin2023,justslightlyabovethe2022level.

Thermalcoaldemandmayfall,asmanycountriesfocusondevelopingcleanerenergysources,slowingdemandforcoalusedtogenerateelectricity.InIndia,coalhastoplaytheanchorroleinthistransition.

Theriseinthepricesofcokingcoalisexpectedtoaffectthepricesofsteelandironore,whichwouldalsobeahindranceintransitioningtogreenmethods.Higher-pricedcokingcoalincreasesthecostofproducingsteelviablastfurnaces,bothinabsolutetermsandrelativetootherroutes.

Ironoremakesup5%oftheearth’scrustandisthesecondmostabundantmetalafteraluminum.Worldcrudeironoreresourcesexceed800billiontonsandareestimatedtocontainmorethan230billiontonsofiron,dominatedbylow-gradeore.Ironoreisminedin50countries,ofwhichthesevenlargestaccountsforthree-fourthoftheworldproduction.AustraliaandBraziltogetherdominatetheworld’sironoreexports,eachaccountingformorethanone-thirdoftotalexports.

Hugescopeandopportunitylieinincreasingthecapacitiesofcoalandironoreminesandconsiderableopportunitiesforfuturediscoveriesofsub-surfacedeposits.Demandforsuchmetalsisexpectedtoincreaseinthenearfuturesinceagreaternecessityiscomingfromresidentialandcommercialsectors,whichwouldputapressureonindigenousmines.TheGovernmentofIndiahasalsohelpedinthedevelopmentofthemetalsandminingsectorinIndiabylaunchingkeypolicyinitiativesandregulatoryinterventionsintheauctionprocess,levyofdutiesandlandavailability.Privatesectorhasalsoadaptedwithtimebyadoptingnewtechnologies,automationanddigitization,thoughconsiderablescopeofimprovementexistsinthisarea.

6Coal,ironoreandsteel—emergingtrendsandchallenges

Indiaisthesecond-largestcrudesteelproducerintheworldandisaimingtoincreasethecapacityofcrudesteelto300milliontons(mt)by2030.Toachievethis,itrequirescapitalgoodsworthUS$136b.TheIndiansteelsectorhasbeenvibrantandhasbeengrowingataCAGRofabout5%to6%y-o-y.WithaV-shapeddemandrecoverypost-COVID-19andthepolicyannouncementsmadebythegovernmentacrosssectors,includingrail,road,aviation,gaspipeline,andhousingandchangesinglobalsupplyanddemandequations,theindustryhashadrecordproductionandgrowthinFY2021and2022.

Whilelargesteelplantsareinvestingprogressivelyon

greenandcleantechnologies,theMSME/SMEssector

islaggingbehind.Steelplants,whetherlargeorsmall,

areoneofthemajorpollutersandrequiresignificant

incentivestocutdowncarbonemissionsandimprovedust

andwatermanagement.Expertsbelievethatthenextbig

waveofcleanertechnologywillseetheuseofhydrogenas

afuelsubstituteforcarbon,coupledwithuseofrenewable

energy.Thesectorshouldactivelyseektomodernizeand

adapttotheglobaldevelopmentsinmanagementthought

onmasteringthefutureforrobustnessandsustainability.

VikramMehta

Partner

EYGmemberfirm

IndiaRegionLeader-

Mining&Metals

VinayakVipul

Partner

Consulting,EY

ConsultingIndiaRegion

Leader-Mining&Metals

SomeshKumar

Partner

Strategy&Transaction,EY

Leader(Power&Utilities)GPS

Coal,ironoreandsteel—emergingtrendsandchallenges7

1

IntroductorySection

8Coal,ironoreandsteel—emergingtrendsandchallenges

1.1Coal

1.1.1

Overviewofcoal

Coalistheworld’smostaffordableenergyfuelandbiggestcommoditymarketforelectricitygeneration.Thehistoryofcoalminingandexcavationisoftenassociatedwiththeindustrialrevolution,owingitsusageiniron,steel,cementproduction,fertilizers,andsteamships.Coalwasalsousedformakinggasses,whichwerefurtherusedforgaslights.Afterthedevelopmentofelectricityinthe19thcentury,itwasevidentthatcoalwouldremainacrucialsourceofenergyforitsgeneration.

Coalcanbeprominentlyclassifiedascokingcoalandnon-cokingcoal.Cokingcoalisthetypeofcoalthatisusedtoproducecoke,whilenon-cokingcoalisusedforotherpurposes,suchaspowergeneration.Thedifferencebetweenthetwotypesofcoalistheirchemicalandphysicalproperties.Cokingcoalhasahighercarboncontentandalowerashcontentthannon-cokingcoal.

Coalevacuationinfrastructuretypicallycomprisesthefollowinglogisticssegments:firstmilelogistics,trunkmilelogisticsandlastmilelogistics.Anycoalsupplychaincanbesimplifiedtothefollowingstages:

Coalmarketshavebeenshakenseverelyin2022,withtraditionaltradeflowsdisrupted,pricessoaring,anddemandsettogrowby1.2%,reachinganall-timehighandsurpassing8billiontonsforthefirsttime.Russia’sinvasionofUkrainehassharplyalteredthedynamicsofcoaltrade,pricelevels,andsupplyanddemandpatternsin2022.

Productiontrend,growthprojectionandforecast

Theglobalcoalreserves,asof2021,reachedaround1,161billiontonswhileannualproductionisabout7.88billiontonsin2022withanincreaseof3.8%from7.59billiontonsin2020.

Figure1:Totalcoalproduction(Billiontonnes)

8.318

8.221

7.953

7.888

7.833

7.592

7.325

9

8

7

6

2017201820192020202120222025(F)

Source–Coal2022,IEA

1.Mine

Globalcoalproductionisexpectedtobe8.3billiontonsin2022,anewall-time-highandwellabovetherecordsetin2019.Thisfollowsanincreaseof3.9%to7.8billiontonsin2021aseconomiesrecoveredfromthepandemic-induceddemanddropin2020.Inabsoluteterms,2021growthwasmainlydrivenbyproductionincreasesof153MTinChina(4%)and48MTinIndia(~6%).

2.Coalpreparationplant(CPP)

3.Inlandand/orseaborne

transportation

4.End-user

Thereboundgrowthtrajectoryforglobalcoalproductionisexpectedtoreachapeakin2023,justslightlyabovethe2022level.By2025,coalproductionwillfallto8.2billiontons,backbelow2022levels.

However,withinthissimplifiedchainaremanystagesofstockpiling,differenttransportationmodes,andwhereeachlinkmeets,andthevariouswaysoftransferringthecoalfromonetotheother.

Coalusedinelectricitygeneration(thelargestsectorbyconsumption),isexpectedtogrowbyjustover2%in2022.Bycontrast,coalconsumptioninindustryisexpectedtodeclinebyover1%,mainlydrivenbyfallingironandsteelproductionamidtheeconomiccrisis.

1.1.2

Globaloverviewofcoalindustry

Coaldemandhasrisenamidongoingshortagesingassupply.Thereducedavailabilityofgashasmeantthatcountrieshaveswitchedtocoaltomeetelectricityneeds.OperationalshortcomingsintheEuropeannuclearandhydroelectricpowersectorsthisyearhaveexacerbatedthedemandforcoal.

In2022,coaltradevolumehasincreasedto1.33billiontonsandagreatmajorityofcoaltradedin2021(93%)wasseaborne.Thetradeofsteamcoalforpowergenerationandboilershowsthegrowingdominanceofcoalasasourceofenergy.

In2021,worldwideexportsofsteamcoalreached1024milliontons,andmetallurgicalcoalis324milliontons.Thetradeofthermalcoalincreasedby1.6%,metallurgical(met)coaltradingvolumesdeclinedby2.3%.

9

Steel,Coal,andIronoreReport

ElectricityIronandsteelResidential,commercialandothersectorOtherSector

800

750

700

650

600

Table1:Country-wiseproduction(Milliontons)

Region

2020

2021

2022

China

3789

3942

4237

India

758

805

893

Australia

474

470

446

Indonesia

566

569

622

USA

486

332

357

Russia

402

437

404

Other

1117

1333

1359

Total

7592

7888

8318

Source-Coal2022,IEA

Majorconsumptionsectorandtrend

In2022,theelectricityandheatsectoraccountedfor67%oftheglobaldemandforcoal.Thisisbyfarthelargestshareofcoaldemandfromanysector.Bycomparison,theironandsteelsectoraccountedfortwelvepercentofthecoaldemandworldwide.

Figure2:Distributionofcoaldemandworldwidein2022

18%

3%

12%

67%

Productiontrend,growthprojectionand

forecast

India’scumulativecoalproductioncrossed777MT,indicatingagrowthofaround8.6%duringFY22comparedtoFY21andaround6.3%inFY20

IndiaisoneofthelargestproducersofthermalcoalintheworldafterChina.Indiawitnessedagrowingcoalproductionbetween2016-17to2019-20.However,theCOVID-19lockdownledtoahaltineconomicactivitywhichhadasignificantimpactontheoverallcoalproduction.

Figure3:Domesticcoalproduction(MillionTons)

777

731

729

716

675

658

550

201720182019202020212022

Source:ProvisionalCoalStatistics,2022

Ofthetotalcoalproduction,thepublicsectorproduced

achunkofapproximately622.6MT,andtheremaining

productionofnearly90MTwasfromtheprivatesector.

Importsalsoconstituteanimportantpartinmeetingthe

totalcoaldemandofthecountry.

Table2:CoalProductionandImport

Source

FY2022

FY2021

FY2020

CIL

622.6

596.2

602.1

SCCL

65.0

50.6

64.0

Other

89.6

69.2

65.3

Import

209

215

249

Source:ProvisionalCoalStatistics,2022

1.1.3

Indianoverviewofcoalindustry

Indiaisoneofthelargestcoalproducersandthefifth

largestcountryintermsofcoaldepositsintheworld.The

coalsectorhasbeenamajorsourceofrevenueforstates

andthecentralgovernmentinIndia.Indiahadaproduction

volumeofabout777milliontonsofcoalasofFY22.

However,thedomesticproductionisnotenoughtomeet

theincreasingdemandforcoal,andtherefore,thecountry

importscoal.

CoalIndiaLimited(CIL)isthelargestemployerinthe

miningsectorinIndia,followedbySingareniCollieries

CompanyLimited(SCCL),thesecond-largestproducer.

SCCLisajointventurebetweentheGovernmentofIndia

andGovernmentofTelangana.

10

Coal,ironoreandsteel—emergingtrendsandchallenges

Power

IronandSteelSpongeIron

Fertilizer

Cement

Other

Keycoalproducingstates

InFY22,Odisharegisteredthehighestcoalproductionof

185.069MT(23.78%),followedbyChhattisgarh154.120

MT(19.80%),MadhyaPradesh137.953MT(17.73%),and

Jharkhand130.104MT(16.72%).

Figure4:Totalcoalproduction-Statewise(Mt)

185.07

200

180

154.52

160

137.95

130.1

140

120

100

67.23

80

56.53

60

29.07

40

20

0.03

0.01

0

Odisha

Chattisgarh

Jharkhand

Telegana

Maharastra

WestBengal

MadhyaPradesh

J&K

Uttar

Pradesh

Source:ProvisionalCoalStatistics,2022

Topfourstatescontributefor78%ofthetotalcoal

productioninthecountry.

Majorconsumptionsectorandtrend

CoalconsumptioninIndiainFY21was1027milliontons.

Indiaisthesecond-largestconsumerofcoalbehindChina,

anddemandisprimarilydrivenbythepowersector,

whichaccountedfor84.0%oftotaldispatchesinFY22.

Inaddition,industrieslikeironandsteel,cement,and

fertilizersareamongthosewhichdependoncoalfortheir

energyrequirements.

Figure5:CoalDispatchIndustrywiseinIndia

1%

12%

1%

84%

2%

Source:ProvisionalCoalStatistics,2022

AsperUSEIA,IndiasawaslowdownincoalconsumptioninFY21onthebackofageneraleconomicslowdowncausedbytheCOVID-19pandemicinducedlockdowns.Coalconsumptiongrowthcouldwitnesslacklustergrowthinthelongrun,asitfacescompetitionfromrenewableenergysources.Currently,thesteelindustryconsumesfinalenergyofaround70milliontonsofoilequivalent(Mtoe),representingalmost23%oftotalenergyinputstotheindustrialsector.

IntheyearFY22,totalcoalimportswerearound209MT

comparedtonearly249MTinFY20,thusshowcasinga

declineofaround16%overFY20.Importofcokingcoal

increasedinFY22andreachednearly57MTcomparedto

around52MTinFY20.

Table3:Indiacoalimport(MT)

CoalType

FY20

FY21

FY22

Coke

51.8

51.1

57.1

Non-CokingCoal

196.7

164.1

151.7

TotalCoalImport

248.5

215.3

208.9

Source:ProvisionalCoalStatistics,2022

AlargechunkofIndia’simportedcoalisfromIndonesia

andAustralia.InFY22,around72MTofthetotalcoal

wasimportedfromIndonesiaand66MTfromAustralia.

IndonesiaandAustraliacontributednearly67%India’s

coalimports.

Coal,ironoreandsteel—emergingtrendsandchallenges11

12Coal,ironoreandsteel—emergingtrendsandchallenges

Indicativedemandsupplyscenarioinviewoftransition

Inrecentyears,therehasbeenasignificantshiftinIndia’senergypolicytowardthepromotionofcleanerandrenewableenergysources.Thegovernmenthasintroducedseveralpolicyinitiativestoreducethecountry’srelianceoncoal,includingtheNationalActionPlanonClimateChangeandtheNationalElectricityPlan.

Oneofthekeyinitiativesinthisregardisthepromotionofcoalgasification,liquefaction,andhydrogenproductionasalternateusesforcoal.Thesetechnologiesallowfortheconversionofcoalintogaseousorliquidforms,whichcanbeusedasfeedstockforvariouschemicaland

Industrialprocesseslikeproductionofsteel,cement,iron,fertilizers,etc.alsorequirecoalprimarilyforthermalpurposes.Industrialcoaldemandisexpectedtogrowbetween350MTand458MTby2030(3.7−5.9percentCAGR)basedontherangeofoutcomesinmanufacturinggrowthandenergyefficiency,withamid-valueofnearly400MT(4.7%CAGR)

Thegrowthofdomesticnon-cokingandimportedcokingcoalwillbethedominantdriversofindustrialcoaldemand.Itisalsoassumedthatabout50%ofthecoalusedforindustrialprocessesisexpectedtobeimportedby2030duetonon-availabilityofhigh-qualitycoaldomestically,whichisconsistentwiththecurrenttrends.

industrialprocesses.

Thedemandforthesetechnologiesisexpectedtoincreaseinthecomingyearsasthegovernmentcontinuestofocusonreducingemissionsfromthepowersector.However,thesupplyofcoalwillalsoneedtoincreasetomeetthisdemand,whichmayrequiretheexpansionofexistingcoalminesorthedevelopmentofnewones.

Overall,itislikelythatthedemand-supplyscenarioforcoalinIndiawillseeashifttowardscleanerandmoreefficientusesoftheresource,withafocusonmeetingthegrowingdemandforcleanerenergysources.However,coalwouldbeimportantnaturalresourcesforupcomingtransition.TheCentralElectricityAuthority(CEA),MinistryofPowerprojectsgrosselectricitygeneration(BU)duringtheyear2029−30likelytobe2,518BUcomprising1,393BUfromThermal(Coal,GasandLignite),801BUfromRESources,207BUfromHydro,4.4BUfromPSSand113BUfromNuclear.

Thisindicatesthatcoalwillhaveamajorroletoplayin

Basedonreports,wecansaythatthedomesticcoalproductionrequirementisonlyexpectedtogrowinthecomingyearsfromapproximately716MTin2021to1067-1121MTin2030.

Table4:Demandofcoal

Power

Industry

CoalDemand

2030

2030

Domestic

892

175-229

Imported

0

175-229

Total

892

350-428

Domestic%

100%

50%

Source-SkillactionplantofueltransitionfromcoaltorenewableenergyinIndia,EY

EnhancedfocusontheroleofprivatesectorandMDOinIndiancoalindustry

India’spowergenerationmixevenin2030withalmost54%(1358BU)ofenergybeinggeneratedbycoal,eventhoughitscapacityisexpectedtobereducedtoone-thirdofthetotalmix.

IntheIndiancoalindustry,theroleoftheprivatesectorhasincreasedinrecentyears,withthegovernmentallowingforgreaterparticipationofprivatecompaniesincoalmining.Privatecompaniescannowparticipateincoalminingforcommercialpurposes,aswellasinthedevelopmentofcoalminesandcoal-firedpowerplants.

MDOs,orminedeveloperoperators,areprivatecompaniesthatarecontractedbycoalcompaniestoundertakethedevelopmentandoperationofcoalmines.Thesecompaniesareresponsibleforcarryingoutvariousactivitiesrelatedtocoalmining,suchasexploration,planning,developmentandproduction.

TheGovernmentofIndiahasalsoencouragedtheuseofMDOsinthecoalindustryasawaytoimproveefficiencyandproductivity.MDOsareabletobringinnewtechnologiesandmanagementpractices,andtheyaretypicallymoreagileandabletoadapttochangingmarketconditions.

Overall,theincreasedinvolvementoftheprivatesectorandtheuseofMDOshavethepotentialtobringinnewinvestments,technologies,andmanagementpracticestotheIndiancoalindustry,whichcouldhelptoimproveitsefficiencyandcompetitiveness.

12Coal,ironoreandsteel—emergingtrendsandchallenges