CAPE TOWN Coal demand in India was increasing at a robust rate and it was expected that the country would need to import 110-million tons of steam and coking coal a year by 2012 to satisfy domestic demand.
Some 25-million tons of that import requirement would come from South Africa, mJunction Services MD and CEO Viresh Oberoi said on Thursday.
Addressing delegates at a conference in Cape Town, Oberoi stated that India's coal demand for the 2010 financial year would be 611-million tons and that it would increase to 640-million tons in 2011 and to 726-million tons in 2012.
However, India's domestic coal production would be 582-million tons next year and 618-million tons in 2012, which would necessitate imports to meet a shortfall of supply.
The Asian country's coal imports would rise to 88-million tons in 2011 and by a further 22-million tons in 2012.
Oberoi elaborated that coal demand was driven predominantly by the power generation, steel and cement sectors, which consumed 60%, 7%, and 5% of coal respectively.
Most significantly, coal-based power generation, which represented 70% of total demand, was on the increase. Current power generation was 156 GW a year and was expected to increase to 211 GW by 2012.
Demand for imported coal was primarily being met by Indonesian coal exporters, which accounted for 63% of total imports into India.
South African coal accounts for 32% of India's imports and Oberoi noted that South African was gaining market share on a yearly basis.
South Africa exported 17,7-million tons of coal to India in 2009, and the industry estimated that as much as 75% of the country's exports could go to Asia in the future.
Oberoi continued that a distinct advantage for South African exporters was that demand for thermal coal imports was expected to increase significantly.
It was anticipated that India's thermal coal requirement for 2010 would be 51-million tons, which would increase to 75-million tons by 2012.
However, in order to further increase South Africa's share of the Indian import market, it was essential that local coal exporters facilitated low-cost and direct access to coal consumers.
India iswas ranked as the third-largest coal consumer in the world.
Source : miningweekly.com