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India Supreme Court verdict likely to impact global Coal prices

The possible surge in import volume could cost India $3billion. The international traders have temporarily stopped talks on supply contracts with India as they see it is better to take decisions after the verdict.
Coal industry will be waiting for India Supreme Court(SC) verdict regarding the cancellation of coal block allocation slated for 1 September. If the SC cancels the coal block allocations it would open the doors for higher imports from India, pushing up global coal prices.
The Supreme Court on Monday ruled that coal mines allocated between 1993 and 2010 are illegal. The court said it will have a separate hearing on 1 September to see whether to cancel the blocks or impose penalty.
The possible surge in import volume could cost India $3billion. The international traders have temporarily stopped talks on supply contracts with India as they see it is better to take decisions after the verdict. The Indonesian miners have slowed down the trade and are delaying long-term negotiations.
Coal is used to generate more than two-thirds of India’s electricity. India faced an alarming power crisis in July as the country’s coal stocks reached critical level. Major power plants were on the verge of shut down as Coal India Limited(CIL), the world’s largest coal miner, failed to raise its output fast enough forcing India to import millions of tonnes of the black rock for its thermal power plants.
Source: Commodity Online