A Project On Analysing Lam Coke in MMTC

Vi jay Ku mar Ch att erj ee
PG DM-I B, II TTM
Brief of the project

My project is about the industry analysis of LAM (Low Ash
Metallurgical) COKE (under NINL section) and expanding the
scope of business of LAM COKE for third party business i.e. non
MMTC companies with particular emphasis on reducing the
logistics cost and supply chain integration practices.
The project deals with the business prospectus in the LAM
COKE (that is Exported or Imported).Because India has a very
less amount of resources of LAM COKE to fulfil its requirement
that’s why it has to import. MMTC has its own subsidiary KMCL
(Konark Met Coke Limited).KMCL produces LAM COKE for
production of Steel. Its marketing part is handled by MMTC.
The project deals with the following headings:-

• Procurement Countries- from where LAM coke is imported
and which are the countries which manufacture LAM
COKE.
• Quantity Analysis-Total amount of LAM COKE imported
in India and what is the quantity MMTC has imported.
• Specification of LAM COKE- Chemical composition of the
LAM COKE.
• Pricing Policy – how the pricing policy is determined by the
Government for LAM COKE.
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• The Traders or Importers.

• SWOT Analysis.
The analysis has its own limitations; the figures might not be
accurate. It does not incorporate the returns in the form of margin
earned from customers. MMTC generally uses back to back L/C
(Letter of Credit) for import of LAM coke, so that it does not
have in problem of payment. The FOB and CIF constraint is also
not taken, i.e. it’s the general rule, when a party imports, it
imports in CIF basis, so in that case MMTC has no to play
(including High Sea Sale).
Corporate Mission
As the largest trading company of India and a major trading

company of Asia, MMTC aims at improving its position further
by achieving sustainable and viable growth rate through
excellence in all its activities, generating optimum profits through
total satisfaction of shareholders, customers, suppliers,
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employees and society.

Corporate Vision
Responsibilities beyond trading contributing to the welfare of
communities in which it operates in a natural element of MMTC
activities.
Corporate Objectives
1. To be a leading International Trading House in India
operating in the competitive global trading environment,
with focus on "bulk" as core competency and to improve
returns on capital employed.
2. To retain the position of single largest trader in the country
for product lines like minerals, metals and precious metals.
3. To promote development of trade-related infrastructure.
4. To provide support services to the medium and small scale
sectors.
5. To render high quality of service to all categories of
customers with professionalism and efficiency.
6. To streamline system within the company for settlement of
commercial disputes.
7. To upgrade employee skills for achieving higher
productivity.
Metal and Mineral Trading Corporation deals in the

following products.
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Minerals:
Among minerals MMTC deals in the following items such as

iron ore, magnesium ore, chrome ore, mud, chemicals,
bauxite, talc gypsum, silica sand etc. MMTC’S mineral sale
share only on FOB sales only.
MMTC continues to be the largest supplier of Iron Ore,

handling about 15% of India’s total exports. It exports iron
ore to Japan, China, South Korea, and Middle East etc
Precious metals
MMTC is India’s premier bullion trader. MMTC precious

metals division is on to a range of activities such as imports,
exports, and domestic retail trade. It is an authorized agency
of Government of India for import of gold, silver, platinum,
palladium, rough diamond, emeralds, rubies and other
precious stones and supplies these items to the jewellers in
India for domestic sales and exports. It is one of the
custodians of the Diamond Plaza Customs Clearance Center
in Mumbai.
The company also operates an in-house assaying and

hallmarking unit at New Delhi for testing purity of gold.
MMTC has received Bureau of Indian Standards (BIS)

certification for its assaying and hallmarking unit at
Jhandewala Bagh, New Delhi. MMTC also has a unit in New
Delhi for manufacturing its own brand of gold and silver
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medallions since the year 1996 MMTC is India's Single

Largest Trader of metals. It's metals division imports and
exports Non-Ferrous metals, Industrial raw materials, Steel
items, Pig Iron, Non Ferrous metals scrap and Iron and Steel
scrap etc. MMTC's share of import in India's import of
refined base non-ferrous metals in terms of value is about
20%.
MMTC import items such as Copper, Aluminium, Zinc,

Lead, Tin, Nickel, Antimony, Silicon, Magnesium, Mercury,
Industrial Raw Materials, Noble metals and Ferro alloys, Pig
Iron, Slag, Steel scrap, HR Coils, CRGO and Steel item.
FERTILIZERS
MMTC Limited is one of the largest importers of Fertilizers

in India. It imports finished fertilizers, fertilizer
intermediaries and fertilizer raw materials.
AGRO PRODUCTS
MMTC Limited is a global player in the Agro trade, with its

comprehensive infrastructural expertise to handle agro
products. MMTC Limited provides full logistic support from
procurement, quality control to guaranteed timely deliveries
of agro products from different parts of India through a wide
network of regional and port offices in India and its contacts
abroad. It trades in the items such as wheat, rice, maize, soya
bean, sugar, edible oil and pulses
MMTC
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COAL AND HYDROCARBON PRODUCTS
Coal and Hydrocarbon is identified as one of the core areas of

business for MMTC and Steam coal is identified as a thrust
product for import. Coal and Hydrocarbon is identified as
one of the core areas of business for MMTC and Steam coal is
identified as a thrust product for import.
BUSINESS REVIEW FOR 2006-07
MINERALS
Despite the pressure of availability of ores for export, and

constraint of infrastructure and logistics, MMTC maintained
its leadership position in export of minerals through
aggressive marketing efforts, enhanced customer focus
tapping of emerging opportunities, especially in China.
During the year 2006-07, South Korea, China and Japan were
the key markets where MMTC exported minerals.
Minerals group of the company contributed a turnover of
Rs.27661.1 million during the year reaching the highest ever
registered by the company in this segment. The said
performance of the minerals group of the year 2006-07
includes exports of Rs.27384.91 million and domestic trade of
Rs.276.19 million. In quantitative terms, the exports
made by the group include 81.29 lakh tones of Iron Ore
valued at Rs. 19012.19 million,1.72 lakh MT. of Manganese
Ore valued at Rs. 408.81 million, 6.48 MT. of Chrome
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concentrates valued at Rs. 5050.81 million and 4.03 lakh MT.

of Chrome Ore valued at Rs. 2913.10 million.
MMTC
Metals and Industrial Raw Material
With robust growth witnessed in industrial & infrastructure

sector leading to increased surge in demand for base metals
and industrial raw material during the year 2006-07, the
metals group of the company contributed Rs.18873.60 million
to MMTC’s turnover during 2006-07 posting a noteworthy
growth of about 22% over the previous fiscal. The
contribution of the group comprised of export of Pig Iron and
Slag produced by NINL-a MMTC promoted Iron & Steel
plant worth Rs.5446.84 millions, import of Non-Ferrous
Metals and Industrial Raw Materials worth Rs.8479.23
million and domestic trade of Rs.4973.53 millions including
sales of Pig Iron produced at NINL worth Rs. 2779.86
millions.
With projections of Industrial and infrastructure sector to

continue being on upward trend, the prospects of MMTC,s
growth seems to be optimistic. To avail of the emerging
opportunities, the group has been realigning its strategies/
business model for further consolidation and tapping of new
products/markets, focussing on its core products/markets,
entering into its strategic alliances with producers of NFM
besides improving further on customer relationship
management , unrelenting focus on Institutional clientele and
deeper market access.
MTC
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The highlights of the performance during 2006-07 as

summarized below.
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2006 – 2007
2005 – 2006
(Rs. In millions)
Exports
34131
29254
Imports
186074
117858
Other trade earnings

445
16512
Net sales / Trading earnings

233461
163934
Trading Profit
2497
2218
Profit Before Taxes

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NEELACHAL ISPAT NIGAM LIMITED (NINL)

Neelanchal Ispat Nigam Limited (NINL),a company
promoted by MMTC Limited ,a US$1.5 Billion Golden
Super Star Trading House of India, Industrial Promotion
and investment Corporation of Orissa Limited (IPICOL)
and MECON Limited is setting up an Iron and Steel Plant,
with manufacturing capacity of 4,92,000 tonnes of Pig
Iron, 2,76,000 tonnes of Billets and 3,00,000 tonnes of Wire
Rods at Kalinga Nagar Industrial Complex ,village Duburi
,District Jajpur, Orissa.
To meet the Coke and Power requirements of Neelanchal
Ispat Nigam Limited, MMTC has promoted another Joint
Venture Company namely Konark Met Coke Limited in
collaboration with IPICOL and Orissa Mining
Corporation (OMC), to produce 5,75,000 tonnes of Coke
for Neelanchal Ispat Nigam Limited and 2,36,000 tonnes
of Coke for sale in domestic and overseas markets. The
capacity of Power Plant is 62.50 MW.
Over the years MMTC has become the acknowledged
market leader in facilitating export of Indian Iron Ore.
Today, MMTC Limited is India’s largest exporter of
minerals and ores, handling about one third of India’s
total exports of around 15 million tonnes per annum.
Neelanchal Ispat Nigam Limited (NINL) & Konark Met
Coke Limited (KMCL) form part of MMTC’s strategic
initiative of creating synergy between its minerals and
metal trading activities.
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Neelanchal Ispat Nigam Limited represents a major

investment by MMTC to develop captive supply sources of
minerals and metal for enhancing exports and increasing
domestic trading activities and at the same time realising
greater value addition for Orissa’s vast mineral wealth.
Besides, MMTC will, as the exclusive marketing agent, use
its strength and presence in global markets to market all
of NINL’s products in India and abroad.
MMTC’s contribution as the main promoter starts with
procurement of raw materials like iron ore and coal, to
closely monitor the eventual manufacture and supply of
finished products that meet the diverse requirements of
end users for quality products . It will be our endeavor to
work in tandem with consumer industries to provide them
with a market savvy, innovative and flexible product mix
and be in virtual control of the entire value addition chain.
KONARK MET COKE LIMITED (KMCL)

Konark Met Coke Limited (KMCL) is setting up coke
Oven Battery, By-Product Plant and Captive Power plant
adjacent to NINL. Low Ash Metallurgical (LAM) Coke
produced by KMCL will be sold to NINL for production of
Iron & Steel and surplus Coke will be sold in domestic and
overseas markets.
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Industry overview
Global demand for LAM coke grew at an average annual

rate of 6.4%, during 2000-06, as against global supply at a
rate of 6% (avg. annual industry capacity utilisation being
85%) during the same period. 91% of the global demand
was from markets situated in Asia, Europe and CIS
during the said period. China is the World’s largest
producer of LAM coke, but with rising domestic demand
from steel industries, it has largely cut down its exports
thereby resulting in acute shortage of coke availability. On
the other hand, India features as the net importer of Met
coke due to increasing economic activity and substantial
thrust on infrastructure spending. Majority of Indian steel
industries do not possess captive coke manufacturing
facility and thus rely on imported coke to meet their
requirement. World over, the demand supply gap is
significantly growing, attracting more players to enter this
segment to reap the benefits. However, players owning
large technically-compliant manufacturing capacities,
possessing strong linkages for raw material sourcing and
adopting prudent financial policies can alone withstand
the competition and grow consistently in the coke
manufacturing segment.
Power:- As per the Ministry of Power (MoP), GOI, the
total installed capacity of electric power generating
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stations was 1,35, 006.63 MW as on Jul. 31, 2007 in India.

This total capacity consisted of 33775.76 MW (24.8%)
hydro power based capacity, 86,935.84 MW (64.5%)
thermal power-based capacity, 4120 MW (3.1%) nuclear
power based capacity and 10175.03 MW (7.6%) from
other sources (including wind). India is an energy deficit
country. During July 2007, India December 2007 faced an
energy shortage of approximately 7.9% of total energy
requirements and 13.4% of peak demand requirements.
The peak demand during 2006-07 was around 272 MW
which is expected to be 320 MW in FY08, as per industry
sources.
Prospects
Future growth prospects of the company mainly depend

on the successful completion of the IPO. The widening gap
in demand supply of coke coupled with few players in this
segment is likely to provide huge opportunities to the
company. Additionally, backward integration in the form
of coal mine acquisitions through group support is likely
to extend synergy to its operations.
**The coal and hydrocarbons business of MMTC mainly

comprises Lam coke, coking coal and steam coal. MMTC
is one of the largest importers of LAM COKE in India.
LAM COKE is imported by MMTC for various customers
like NINL, SAIL, RINL, KIOCL, and IDCOL and also for
some private companies.
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LAM COKE
Low Ash Metallurgical

Coke (Met Coke)
Hard Coke is actually end

product, commonly known
as Low Ash Metallurgical
Coke. It finds useful
applications in steel plants,
foundaries, blast furnaces,
soda Ash manufacturing,
Hindustan Zinc Ltd.,
Graphite industry & other
chemicals. The raw material
for making hard coke is
Low Ash Coking Coal
sourced mainly from
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Australian, Chinese and

USA coal mines.
PRODUCT SPECIFICATION (NINL)

Product Specification - LAM coke
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MC (%
max)
Ash (%
max)
VM (%
max)
S (% max)
M-40 (%
min)
M-10 (%
max)
CRI (%
min)
CSR (%
min)
1
12.5
1
0.55
82
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PRICING POLICY
While price (per unit) of ‘primary commodities’ such as,
agricultural products and minerals is observed to be
determined by the market forces of demand and supply,
the price of ‘manufactures’ is determined /administered by
firms based on teh average /marginal cost to accommodate
profits. The margin of ‘mark-up’ in turn, depends on the
degree of monopoly is thus able to charge a higher margin
of mark-up compared to a competitive firm.
If a public sector has a monopoly in supply ,it may fix its

price at the level that will maximize the mark –up as well
as the gross profits .that may not ,however ,happen since
the government may intervene to moderate the price in
the interest of consumers or the user industries .In general
,the governments fix/administer the price in the interest
the price of goods (and services) being produced by public
sector entities based on
(a) The true costs of goods and services,
(b) Cross subsidization between one group and another or
between one sector and another,
(c) Below the costs if that can stimulate demand under
conditions of excess/ unutilized capacity,
(d) Differential prices norm for peak and off-peak demand
and
(e) Different prices /multi-tariffs to include discounts for
purchase of larger volumes or for various other incentives.
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The public sector enterprises in India have had to work

under the price regime, for goods and services produced
by them, administered by the Government. Paradoxically,
while these central public sector enterprises had to avail
the government approval for fixing their prices, they have
been price takers for the inputs they utilised for their
respective outputs. As such, if the output prices were not
raised and the inputs cost went up, this led to losses to
these enterprises. Better capacity utilisation meant larger
losses to the enterprises. This situation was reviewed in the
wake of post- 1991 economic liberalisation. With the
dismantling of administered price mechanism there after
the price of products and services of these central public
sector enterprises are now determined on economic
grounds and by the market forces. The paragraph will
briefly discuss the policies of LAM COKE by the public
sector enterprises.
The central Government was empowered under the CCO

(colliery control order), 1945 read with the Essential
Commodities Act, 1955 to fix the grade wise and colliery
wise prices of coal. The pricing of coal has been completely
deregulated after the Colliery Control Order, 2001 notified
w.e.f 1st January 2000 rescinding the Colliery Control
Order, 1945. Under the Colliery Control Order, 2000, the
Central Government has no power to fix the prices of coal
and coal companies themselves are competent to fix
grade–wise prices of coal produce by them based on
economic grounds. The extant pricing policy in regard to
coal supply to power and other sectors is under
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examination of the Government. In respect to coking coal

and LAM COKE imported from abroad,
Importers are free to determine their selling prices in the
domestic market without any restrictions.
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Coal Reserves - All Grades of Coal.
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Coal reserves-Low grade coal.
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• The 20 largest countries measure by size of coal reserve.

Coal Production and Consumption
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Coal Production per region over time: Asia Pacific has

experienced a big increase in coal production over the last four
years as the regions GDP has grown strongly - with economic
expansion in China.
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Coal Consumption per country - China's consumption has

fluctuated with it's GDP growth and dominates the global
consumption profile. The USA's coal consumption has also
expanded. Russia and Germany consumption has decline
as deep coal mines have closed and been replace by natural
gas for power generation (Germany's gas production has
declined leaving it increasingly reliant on imported gas from
Russia and Holland). Not surprisingly, coal production
mirrors consumption quite closely because of high transport
cost - the only significant exception is Australia, which has
huge open cast coal mines in eastern Australia close the coast,
which can be shipped efficiently to global markets. At one
time in the 1980s, the UK imported significant quantities of
Australian coal even though the UK has coal mines, because it
was cheaper to import this open cast coal from the other side
of the globe.
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COAL INDUSTRY OF INDIA
Coal mining in India dates back to the 18th century, however

the regulatory framework for this industry was conceived in
1923. In 1972-73, the Indian government nationalised the coal
industry, primarily to develop the sector, since it was
considered of strategic importance for rapid industrial
development. Coal India Ltd (CIL) was incorporated as a
holding company for seven coal producing subsidiaries and a
planning and design focussed institute. It is engaged in mining
from a total of 495 working coal mines which account for
nearly 88 percent of total production.
Coal Industry highlights:
• India is the third largest producer of coal in the world.
• Coal is one of the primary sources of energy, accounting
for about 67% of the total energy consumption in the
country.
• India has the fourth largest reserves of coal in the world
(approx. 197 billion tonnes.).
• Coal deposits in India occur mostly in thick seams and at
shallow depths. Non coking coal reserves aggregate
172.1 billion tonnes (85 per cent) while coking coal
reserves are 29.8 billion tonnes (the remaining 15 per
cent).
• Indian coal has high ash content (15-45%) and low
calorific value.
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• With the present rate of around 0.8 million tons average

daily coal extraction in the country, the reserves are
likely to last over 100 years.
• The energy derived from coal in India is about twice that
of energy derived from oil, as against the world, where
energy derived from coal is about 30% lower than energy
derived from oil.
• As of 2003, India has 19 coal washeries (total
capacity:27.2 million tonnes per annum) of which 15 are
owned by CIL.
• The use of beneficiated coal has gained acceptance in
steel plants and power plants located at a distance from
the pithead.
Energy and Environment
27 November 2006, Forbes magazine
China India
Recoverable 126,214.7 million 101,903.2 million
Coal Reserves short tons short tons
Coal 2,156.4 million 403.1 million short
Production short tons tons
Coal 2,062.4 million 430.6 million short
Consumption short tons tons
Production
India has huge untapped potential for underground mining
with extractable reserves upto a depth of 600 metres.
Currently mining is done predominantly by open cast methods
to exploit the 64 billion tonnes of proven reserves situated
within a depth of 300 metres. Lower operating and production
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costs, greater percentage recovery and a higher output per

manshift compared with underground mining are some of the
advantages presently associated with open cast mining in
India.
External trade
Presently, India is not a major exporter of coal and

essentially caters to the demands of neighbouring
countries like Bangladesh, Nepal and Bhutan. However,
there are no restrictions on coal exports under the
existing Export-Import Policy of India. India imports
small quantities of low ash-content coal principally for
use by steel plants, which blend it with Indian coal.
Import duties are low and are expected to be lowered
further.
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Challenges in the Coal industry

Focus points
• Producer rationalisation - impact on the
workforce and on global market structure
• Sustainable development - measuring and
improving social impacts
• Climate change - dimensions of the
employment challenge
Producer rationalisation
•Rationalisation trend facilitated by buyers overplaying their
hand
• Cost in jobs: 30% cut from 26,200 in 1996 to 18,850 in 2000
• Some rebound to 21,100 at end 2002
• Pricing and margins are now more rational, but achieved
the hardest way
Takeover and mergers have occurred right across the mining

industry globally; it is conventional wisdom that this is a
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response to tight margins and intense competition in

commodity markets.
In the case of coal, there was a long standing practice of

buyers’ cartels which had historically kept prices at a level
which would keep marginal produces hanging on. They also
engaged in collusive subsidised investment practices to induce
new market entrants. All with the aim of ensuring diversity of
supply and that long run prices would be below where they
would be if normal supply and demand had operated.
Producer rationalisation now means that the big players make

rational market decisions.
They have low debt levels and will only produce and sell coal
where they make a reasonable margin.
It was the union view that rational market pricing could have
been achieved by cooperation amongst the sellers to combat
the collusive buying practices
The Sustainable Development challenge
•Mining not sustainable by definition, but can contribute

positively to sustainable development
• Mining must result in a net improvement in capital - can be
a mix of social, economic, environmental
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• Fossil fuels have more of a problem than other minerals -

but note the campaign against gold
I now turn to the challenge of sustainable development.

The extraction and use of a non-renewable resource is by definition
unsustainable in the long term. (In the case of coal, the very long term
as known reserves will last hundreds of years.)
But the mining industry has to learn to live with the fact that it can
never present itself as a “sustainable industry”. Nevertheless, it can
find a role as a positive contributor towards sustainable development.
Mining can produce and support goods and services that contribute to
a society’s progress towards sustainability.
At the abstract level the key concept here is that a mine must not just
result in net profits for the company, but must produce an overall net
improvement in capital. That capital can be in a variety of forms -
conventional economic, social and environmental. A mine that
produces net profits for shareholders at the cost of great
environmental harm clearly does not result in a net improvement in
capital.
Coal and fosssil fuels that are “used up” rather than being transformed
into another product clearly face a greater challenge than other
minerals, but the principle is the same.
It is worth noting here that green groups involved in mining

campaigns currently seem to hate gold more than coal. Their early
success can be measured in moves by some US states to ban acid
leaching in gold mining. And the green groups argue that all the gold
the world will ever need has already been produced and just needs to
be released from bank vaults.
MMSD/GMI/ICMM
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• Mining Minerals and Sustainable Development

process - a 2 year consultation and research
exercise funded by major mining companies
through the Global Mining Initiative
• New peak body - International Council on
Mining & Metals
• Social impacts of mining the key challenge; not
the environment
Now for some newish acronyms which, if you don’t know

them, just show you haven’t been watching the sustainable
development debate in the mining industry.
The Mining, Minerals and Sustainable Development process

concluded in May 2002 with a conference in Toronto, Canada.
Roughly half the attendees were CEOs and top management
of mining companies and the other half were “stakeholders”:
indigenous people, NGOs and unions.
It was a 2 year consultation and research project funded by
around 17 major mining companies on a joint basis - because
they recognised that their individual efforts were not reducing
the threats to their industry and to individual projects.
There were some amazing statements made by CEOs there.

For example that the current industry could not possibly fund
the cost of fixing the thousands of unrehabilitated minesites
around the world. Pretty amazing for an industry as a whole to
say it can’t cover its known liabilities.
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Rio Tinto chief Robert Wilson also said that mineral prices
would have to rise if the mining industry was to meet
community expectations of it. This was an acceptance that
current competitive prices do not adequately reflect all the
social and environmental costs of production.
One immediate result of the project has been the ICMM - the
International Council on Mining and Metals - a new global
peak body for mining and minerals processors. It has an
explicit focus on sustainable development.
Social impacts
• Crisis of legitimacy caused by declining employment and
reduced social spin-offs
• Problem compounded by poor industry progress on
recognition of human rights
• Banks and SRI investors shying away from mining
because of social and environmental risk
• The industry is fighting a desperate rearguard action
In Australia and across the world, the mining industry seems
to face mounting problems in its interactions with indigenous
people, with mining communities and with its workforce. But
in the developing world it is fairly clear that the major mining
companies face escalating problems.
With mining communities it’s a simple problem of the
benefits drying up as the jobs have gone. The big companies
have minimised their spin-off benefits and local communities
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have been punished. As a result their willingness to tolerate

the noise, dust, coal trains, coal trucks and the general
problem of very large holes in the ground has diminished.
When the coal industry invests something like $2 million to
$3 million per permanent job created it looks like poor value
for money to a mining community.
Workforce issues in SD
• Engagement as stakeholders
• Recognition of core human rights in the
workplace (8 ILO minimum standards) – Esp. (in
Australia) freedom of association and
right to collectively bargain
• Working hours and practices that enable family,
community and cultural life
So what does this mean with respect to
mineworkers?
It means recognising that they are stakeholders with their own
separate interests. That they are not just a factor of production
that can be fully aligned with the interests of the company.
It means an end to the current widespread practice of
management speaking on behalf of their workers and
investment analysts accepting that. It reminds me of nothing
so much as white slave owners from the American deep south
speaking on behalf of their slaves.
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I speak here of the core labour rights standards of the

International Labour Organisation which have been endorsed
by most nations as fundamental to respect and dignity at
work.
The right to join a union, the right to collectively bargain,

freedom from child and forced labour, equal pay for equal
work, and non-discrimination in the workplace.
Not big things surely, but there is widespread non-observance
of them in the mining industry. It’s not so bad in the coal
sector, but in metal mining it is a real problem.
It is already the case in Europe that most major wood products
retailers will only purchase wood that has been produced
under observance of core labour standards.
Unsustainable hours
% of employees working more than 49 hours p.w.
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This chart shows how much workers in the mining industry

are suffering under long working hours.
Almost 44% of mine workers work more than 49 hours per
week - a higher proportion than any other industry.
And this chart understates the problem. In metal mining,
which is poorly unionised, something like 85% of all workers
work 12 hour shifts, and a high proportion of them work such
shifts for 7 or 14 days in a row.
A common roster in the mining industry is now 14 days of 12
hour shifts followed by a week of rest. That works out at an
average of 56 hours per week over the year.
These hours are unsustainable in the long term. What happens
right now is that in mining sectors where the hours are longest
there is high turnover. In gold mining where the average hours
are about the highest, labour turnover can reach 50% per year.
What this means is that young people are leaving the industry
before the fatigue levels kill them.
The mining industry is relying on an endless stream on young
people to “use up” and throw away. That they can currently
find these people doesn’t justify the practice. To my mind this
is “mining” the workforce. It is unsustainable use of labour.
Climate change
• Not a problem controllable at the site or company or even
industry level
• The coal industry needs to accept the scientific consensus
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• Goal must be to avoid arbitrary, non proportional targeting

of coal, and to support the most efficient methods for GHG
Reduction
The issue of climate change is part of the sustainable
development challenge but it is by far the most difficult for
coal.
Mining companies might well lift their game on social

impacts of mining, and they already do reasonably well on
environmental management of mine sites, but with climate
change the problem is in the impacts of final use of the
product. Not directly a mine site or mining company
controllable issue. It is even difficult for the industry to
address, as the impacts arise at the point of use - principally in
power generation.
We have to accept the scientific consensus that climate change

is a real threat, despite the presence of contradictory evidence
and despite the fact that the scientific community has a bit of a
vested interest in climate change research.
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Employment Projection, Coal industry, High Productivity
The prospects for coal mining jobs are pretty grim anyway. If
everyone in the mining industry gets pushed onto 12 hour
shifts for 7 days at a time like some companies want then
another 30% of jobs will go.
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CONCLUSION
India's coal demand is expected to increase manifold within
the next 5 to 10 years due to the completion of on-going coal
based power projects, and demand from metallurgical and
other industries. Demand for coal has been rising at an annual
rate of 6 per cent since 1992-93 and CIL and its subsidiaries
will be unable to meet the projected demand alone. The
investment needed to bridge the gap----400 million tonnes,
between the level of production in the public sector (290
million tonnes in 1995-96) and the projected demand of 690
million tonnes (2009-10)----is estimated to be US$ 18 billion.
The public sector corporations----are expected to increase
their production by about 250 million tonnes by 2009-10,
subject to their making an additional investment of US$ 8-10
billion. The balance requirement of 150 million tonnes will
have to be met by imports in the short run and by new
investments in the long run.
With the advent of the economic reforms, government
controls regarding pricing and distribution have been relaxed
and a new coal policy permitting private sector participation
in commercial coal mining has been announced.
The National Steel Policy projected that production in India
will increase from 38 million tons in 2004-05 to 100 million
tons by 2019-2020, marking a compound annual growth rate
(CAGR) of 7.3 percent per annum. Even while this policy was
being prepared, experts felt that it was a conservative estimate
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and within a year or two, this projected growth rate had

almost lost relevance.
Today, everyone is dreaming that India will produce 200

million tons by 2020, provided the country successfully tackle
all the problems.
The eastern India states of Jharkhand, Orissa, Chhattisgarh

and West Bengal, where the iron mines are located, have got
the biggest amount of investment. On the western front, states
like Gujrat and Karnataka also have some big ticket
investments and in the south, there are Tamil Nadu and
Andhra Pradesh. In both the southern states, the existing
players, SISCOL (JSW) and Vizag Steel (RINL) respectively
are increasing capacities.
Jharkhand and Orissa have attracted the biggest investments

and the best companies too. They have multinationals like
Arcelor Mittal, Posco and Sinosteel, and domestic giants like
Steel Authority of India Ltd. (SAIL), Tata Steel, Essar and
JSW. Big names are queeing up at Chhattisgarh too. SAIL,
RINL and NMDC have joined hands for green field projects.
MMTC
West Bengal may not have any iron ore, but being located
next to the iron ore belt, has attracted good investment. JSW
and Bhushan are setting up plants. SAIL is rebuilding the
IISCO, the country’s oldest plant, into modern integrated unit.
Massive investments are already being announced.
This apart, Corporate groups have already expressed their

interest in entering the steel industry. White goods major,
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Videocon, belonging to Venugopal Dhoot, has signed a MOU

with the West Bengal government for setting up a 3-million
ton plant steel and India’s non-ferrous giant, Sterlite, after the
successful acquisition of Sesa Goa Ltd., now wants to set up a
5-million ton unit in Orissa’s Keonjhar district.
Meanwhile, as investors were drawing up their plans and

hunting for sites, an unwanted competition grew between the
states. It is not new but this one grew ugly. States having
mineral resources were against giving it to units located
outside their boundaries. The myopic leadership of these
states is busy creating hurdles to stop the outflow of resources
but hardly concentrated on creating a world class
infrastructure which would make them the natural choice of
the entrepreneur. Maybe it is high time that these states realise
that cooperation, rather than unhealthy competition, is the
need of the day.
MMTC
If these steel industries established then there would be much

more requirement of Lam coke .On the whole, the scenario of
LAM Coke is buoyant and booming. More adjectives could
have been added to this picture, if the other side of the coin
was not looked into.
M
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BIBLIOGRAPHY
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THANK YOU
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A Project On Analysing Lam Coke in MMTC

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A Project On Analysing Lam Coke in MMTC

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Vi jay Ku mar Ch att erj ee

Brief of the project

The project deals with the following headings:-

• The Traders or Importers.

As the largest trading company of India and a major trading

employees and society.

Metal and Mineral Trading Corporation deals in the

Among minerals MMTC deals in the following items such as

MMTC continues to be the largest supplier of Iron Ore,

MMTC is India’s premier bullion trader. MMTC precious

The company also operates an in-house assaying and

MMTC has received Bureau of Indian Standards (BIS)

medallions since the year 1996 MMTC is India's Single

MMTC import items such as Copper, Aluminium, Zinc,

MMTC Limited is one of the largest importers of Fertilizers

MMTC Limited is a global player in the Agro trade, with its

COAL AND HYDROCARBON PRODUCTS

Coal and Hydrocarbon is identified as one of the core areas of

BUSINESS REVIEW FOR 2006-07

Despite the pressure of availability of ores for export, and

concentrates valued at Rs. 5050.81 million and 4.03 lakh MT.

With robust growth witnessed in industrial & infrastructure

With projections of Industrial and infrastructure sector to

The highlights of the performance during 2006-07 as

Other trade earnings

Net sales / Trading earnings

Profit Before Taxes

NEELACHAL ISPAT NIGAM LIMITED (NINL)

Neelanchal Ispat Nigam Limited represents a major

KONARK MET COKE LIMITED (KMCL)

Global demand for LAM coke grew at an average annual

stations was 1,35, 006.63 MW as on Jul. 31, 2007 in India.

Future growth prospects of the company mainly depend

**The coal and hydrocarbons business of MMTC mainly

Low Ash Metallurgical

Hard Coke is actually end

Australian, Chinese and

PRODUCT SPECIFICATION (NINL)

If a public sector has a monopoly in supply ,it may fix its

The public sector enterprises in India have had to work

The central Government was empowered under the CCO

examination of the Government. In respect to coking coal

Coal Reserves - All Grades of Coal.

Coal reserves-Low grade coal.

• The 20 largest countries measure by size of coal reserve.

Coal Production per region over time: Asia Pacific has

Coal Consumption per country - China's consumption has

COAL INDUSTRY OF INDIA

Coal mining in India dates back to the 18th century, however

• With the present rate of around 0.8 million tons average

costs, greater percentage recovery and a higher output per

Presently, India is not a major exporter of coal and

Challenges in the Coal industry

Takeover and mergers have occurred right across the mining

response to tight margins and intense competition in

In the case of coal, there was a long standing practice of

Producer rationalisation now means that the big players make

The Sustainable Development challenge

•Mining not sustainable by definition, but can contribute

• Fossil fuels have more of a problem than other minerals -

I now turn to the challenge of sustainable development.

It is worth noting here that green groups involved in mining