New Delhi: Indian government sources revealed on Friday that Australia has pledged consistent coking coal supplies to India, aiming to assist domestic steel mills grappling with shortages of this vital steelmaking raw material and the accompanying surge in prices.

Nagendra Nath Sinha, a top official at India's federal Ministry of Steel, held discussions with Philip Green, Australia's high commissioner to India, in New Delhi. The meeting focused on coking coal supplies and broader topics such as the decarbonization efforts of Indian steel companies.

Australia presently contributes to more than half of India's coking coal imports, which stand at around 70 million metric tons annually.

"One of the sources mentioned that Australia, as an important partner, has assured a commitment to remaining a dependable supplier," stated the anonymous source, citing a lack of authorization to speak to the media.

As of now, neither the federal Ministry of Steel nor the Australian High Commission has responded to media queries via email.

Earlier reports had indicated that the Indian government intended to urge Australia to take measures ensuring the steady provision of coking coal. The surge in prices for this raw material in recent weeks has prompted this action.

A senior executive from a steel mill emphasized the need for dedicated coking coal supplies due to competition from other countries and weather-related disruptions experienced in Australia. The executive, however, chose anonymity, citing a lack of media authorization.

With erratic weather impacting coking coal supplies from Australia, Indian steel mills have attempted to seek alternatives, such as exploring Russian suppliers offering relatively lower prices. Nevertheless, major Indian producers continue to heavily rely on Australia, particularly for specific grades of coking coal.

Aside from Australia and Russia, India also imports coking coal from the United States. The prices for Australian coking coal surged by 50% last month, exceeding $350 per metric ton due to various factors like maintenance outages, reduced supplies from Queensland, and slower transportation networks.