JSW Steel has temporarily suspended plans to source coking coal from Mongolia, citing significant logistical hurdles in transporting the material from the landlocked Central Asian nation to India.

“Mongolia was being explored as an alternative source, but there are a lot of logistics-related issues for transportation. As of now, it is not logistically feasible, and the plan is on hold,” said Jayant Acharya, Joint Managing Director and CEO of JSW Steel, during the CII Global Sustainability Summit on Tuesday.

Coking coal is a critical raw material for blast furnace-based steelmaking. Despite being the world’s second-largest steel producer, India relies heavily on imports, with over 80–90% of its coking coal needs currently met through foreign suppliers, predominantly Australia. Long shipping durations and high logistics costs from key exporting nations continue to pose challenges for Indian steelmakers.

In recent years, the Indian government has explored import diversification strategies to reduce dependence and improve price stability. In January 2025, officials noted ongoing discussions to assess viable transportation corridors for coal imports from Mongolia.

Meanwhile, JSW Steel will continue sourcing coking coal from its existing suppliers to maintain operations. The government is also promoting domestic coking coal exploration and encouraging low-carbon or alternative steelmaking technologies as part of India’s broader decarbonisation agenda.