Business Line has reported that at least 10 secondary steel and sponge iron mills, from Odisha and Chhattisgarh, have placed orders to the tune of 60,000 tonnes for coal from Mozambique. Business Line report quoted an official of the trading company as saying that “So far 60,000 tonnes have been booked by sponge iron mills and secondary makers of Odisha and Chhattisgarh. There are 50-odd enquiries so far.”Compared to the high-end South African variant–also called RB2–the coal from Mozambique is priced 8–10% cheaper. Called VT-1 or Vulcan Thermal grade 1, the coal finds usage in sponge iron making. The current price of Mozambican being offered is around USD 220 per tonne and also cheaper than the South African variant, currently priced between USD 250–260 per tonne.In the recent past, one of the larger Indian steel companies has experimented with the VT-1 grade coal. The results showed that average consumption for every tonne of sponge iron is 700–800 kg coal as against 1,500 kg/tonne of Coal India
Business Line has reported that at least 10 secondary steel and sponge iron mills, from Odisha and Chhattisgarh, have placed orders to the tune of 60,000 tonnes for coal from Mozambique. Business Line report quoted an official of the trading company as saying that “So far 60,000 tonnes have been booked by sponge iron mills and secondary makers of Odisha and Chhattisgarh. There are 50-odd enquiries so far.”Compared to the high-end South African variant–also called RB2–the coal from Mozambique is priced 8–10% cheaper. Called VT-1 or Vulcan Thermal grade 1, the coal finds usage in sponge iron making. The current price of Mozambican being offered is around USD 220 per tonne and also cheaper than the South African variant, currently priced between USD 250–260 per tonne.In the recent past, one of the larger Indian steel companies has experimented with the VT-1 grade coal. The results showed that average consumption for every tonne of sponge iron is 700–800 kg coal as against 1,500 kg/tonne of Coal India
