Sub standard coal being imported by power generators

It seems thats the shortage of coal is forcing the power generation companies in India to opt for lower grade of imported coal. The environmental concerns raised for mining of cola might result in usage of sub standard coal and increased pollution/emissions. The social cost of such trends need to be incorporated by teh economists and enronmentalists. India’s demand is for sub 6,000 kc/kg  standard coal is increasing. It has low calorific value (cv) and low priced coal. India is dragging in Indonesian sub-bituminous and what might be seen as mining discard from Australia. “In the last week or so a cargo of low cv coal has gone from South Africa to India and the importance of that cannot be underestimated,” sources added.

Country’s growing appetite for low-grade, low-priced coal could give South African state utility Eskom fuel supply problems, Graham Parker, director of traders Traxys Coal, said. A shipment of 4,800 kc/kg coal, significantly below the standard grade of around 5,800 kc/kg for export coal, was sold last month to an Indian buyer by one of South Africa’s biggest mining companies, Parker said at the Navigate shipping conference.Lower energy content coal, which is mined simultaneously with export grade coal in South Africa, is almost entirely burned by state utility Eskom, which generates more than 90 per cent of the country’s power.