Sponge iron producers in India are raising concern as fuel supply contracts won’t be renewed as the nation’s state-run coal miner continues to prioritise power plants in an effort to avoid blackouts.
Supplies from Coal India Ltd for some producers are scheduled to end from August, which means the companies will be forced to rely on vastly more expensive imported fuel, said Anil Nachrani, president of the Chhattisgarh Sponge Iron Manufacturers Association.
The producers in Chhattisgarh have appealed to the state miner to renew their pacts and are seeking talks with Coal Minister Pralhad Joshi, according to Nachrani.
