Coal India to make materials for explosives to beat costs surge

Coal India Ltd., the world’s largest supplier of the fuel, will add production of a key ingredient used in explosives for mining as it aims to tackle surging costs.

The company plans to produce around 700,000 tons a year of ammonium nitrate, about half the amount it consumes, amid efforts to protect profit margins, according to people familiar with the details, who asked not to be identified as they aren’t authorised to speak publicly.
Coal India didn’t immediately respond to an emailed request for comment.

Miners globally have been flagging pressures from rising costs of energy, labour and chemicals for months, with copper and gold giant Freeport-McMoRan Inc. among those to specifically call out higher ammonium nitrate prices.