Coal Supply from Australia to India

According to commodity trader — Rowan Relton, Indian energy firm Adani is on track to export coal from Australia, as the thermal and metallurgical coal trade between the two nations grows in importance in the absence of Chinese buying of Australian coal.

India’s thermal power plants are facing a severe coal shortage, with coal stocks having come down to an average of four days of fuel across an increasing number of thermal stations.

Australia and India are working more closely now on a diplomatic level, both through the Quadrilateral Security Dialogue (Quad) grouping, which also includes the USA and Japan, and through bilateral discussions, Rowan Relton says. The first joint working group (JWG) meeting on coal and mines between India and Australia was held over video link last week ahead of next month’s India-Australia Energy Dialogue.

India is seen as a key market for some of Australia’s lower grade coals, which have been setting new records for discounts to premium products over the past few months, taking over from China as a major buyer.