This is from Southern Cross research. This is a section.Although...

This is from Southern Cross research. This is a section.

Although endowed with significant iron-ore resources (albeit lower grade), India is nude coking coal. Last year Tata bought 35% of a coking coal project in Mozambique with Australian listed Riversdale Mining (RIV). In addition, Tata is strongly rumoured to be aggressively seeking further coking coal producing and development assets in Australia. Further, it was very interesting to note that Xstrata belatedly settled coking coal contracts at US$362t, a significant premium to the benchmark, and it all went to Indian customers (around 12mt of hard coking coal) including no doubt Tata. We believe a violent round of bulk commodity acquisitions by steelmakers is imminent.