Monday, March 22, 2010

India starts importing coal from Colombia

This first ever import of thermal coal from Colombia is being done by Adani Enterprises Ltd, India’s biggest coal importer. The first cargo of fuel will be imported in a capesize, a vessel that has a carrying capacity of at least 110,000 deadweight tons. The company is said to be negotiating a long-term contract.

Colombia’s Cerrejon, the world’s largest open-pit mine producing coal for export, may make its first sales to India this year. Colombian coal may land in Mundra and Dahej ports on India’s west coast because they can handle capesizes.

Colombian coal supplies, which account for about 10 percent of global trade, may rise by 7.7 million tons in 2010 to 71 million after falling by about 8.7 percent last year.

Indian thermal coal imports surged last year to a little less than 60 million tons from about 30 million in 2008. India plans to almost double electricity generation capacity by 2012, when the shortage of coal will exceed 200 million tons.

India imports around 5 million tons a month from Australia, Indonesia and South Africa.

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