India out to snap up Aussie coalFriday September 4, 2009, 8:21...

India out to snap up Aussie coal

Friday September 4, 2009, 8:21 am




When it comes to countries purchasing Australia's energy resources, China has been the name on most peoples' lips.

But another giant player, India, is also in line to buy vast amounts of Australian coal.

India's minister of state for coal, Sriprakash Jaiswal, is on a special mission to Australia to help satisfy India's urgent energy needs.

This week he has been visiting coal mines in the New South Wales Hunter Valley and in the Emerald region of Queensland.

"It's my duty to visit all the countries where coal is available and Australia is one of those countries where coal is available - and superior quality coal is available," he said.

Mr Jaiswal says India is looking to secure more coal because more than half of its electricity comes from coal-fired plants.

Australia has a long-standing relationship with China, but Mr Jaiswal says this does not make any difference to trade ties between India and Australia.

He was underground again last night, attending a cocktail party in his honour in the basement of a Sydney hotel.

The party was hosted by an Indian mining executive, Arun Kumar Jagatramka, whose company's first investment in Australia was an old mine just outside Wollongong.

The renewed mine produces coking coal which is used to heat blast furnaces to make steel.

Mr Jagatramka says there is strong demand for both coking coal and the coal used to make electricity.

"They're growing at a very fast rate," he said.

"India does not have enough resources to feed that demand, and from that perspective, Australia has all the resources.

"Indian industries and Indian companies do need to take a long term view, do need to invest in resources and infrastructure and level of infrastructure in Australia to be able to meet the longer term demand that is coming in India."

He also dismissed concerns that Australia's relationship with China disadvantaged India.

"I don't think so, it is like China has already lubricated and prepared the venue for us, we only have to land," he said.