https://www.miningweekly.com

Coal India reports first rise in monthly shipments since February

2nd September 2020

By: Bloomberg

  

Font size: - +

Coal India reported the first increase in monthly shipments since February, after demand for the fuel picked up with easing of restrictions aimed at controlling the coronavirus pandemic.

The company shipped 44.34-million tons of coal in August, 9.3% more than a year earlier. Output rose 7% to 37.2-millions tons, the first increase in five months, company filing shows.

The demand for electricity has been rising since offices, factories and other commercial establishments resumed work after weeks of strict lockdown, which led to a record slump in the country’s quarterly gross domestic product. While an increase in energy consumption offers early signs of recovery, rapidly rising infection cases pose a threat.

Power plants, which consume nearly 80% of Coal India’s sales, have seen their inventories slide from record levels earlier this year. That may prompt buyers to replenish their stockpiles, according to Rupesh Sankhe, vice president at Elara Capital India Pvt. in Mumbai.

“Coal India is aggressively pushing its sales to make the best of the demand revival, “ Sankhe said. “Its own stockpiles have swollen substantially and it is under pressure to bring that down.”

The company is also bracing for the future and plans to spend 1.22-trillion rupees ($16.7-billion) in about 500 projects related to coal evacuation infrastructure, exploration and clean coal technologies, coal minister Pralhad Joshi said in a separate statement.

Edited by Bloomberg

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION