India: MCL, ECL schedule auctions for nearly 3 mnt of non-coking coal

• MCL to offer over 1.8 mnt of G14 coal
  
  
• 200,000-t washery rejects also on offer
  
  

Mahanadi Coalfields Ltd (MCL) and Eastern Coalfields Ltd (ECL) have scheduled e-auctions on 20 June 2026, collectively offering more than 2.75 million tonnes (mnt) of non-coking coal to non-regulated sector consumers. While MCL's auction is characterised by large volumes across multiple mines and grades, ECL's offer remains limited, comprising a single source and grade.

MCL's auction led by LBL, Hingula, Samleswari OCPs

MCL has notified its second Single Window Mode Agnostic e-auction for June, offering a total of 2.7 mnt of coal through road and rail modes. The auction basket is heavily skewed towards G14-grade coal 1.8 mnt, with the bulk of the volume concentrated in a few large open-cast mines.

LBL Integrated OCP has emerged as the largest contributor, offering 722,000 t of G14 coal, including 718,000 t through road mode and 4,000 t through rail dispatch. Hingula OCP follows with 462,000 t of G14 coal, while Samleswari OCP has placed 450,000 t of the same grade on offer. Together, these three mines account for nearly 1.63 mnt, representing around 59% of the total auction volume.

Additionally, Garjanbahal OCP has offered 148,000 t of G14 coal through road mode, while HBM underground mines have contributed another 50,000 t of G14-grade material, further strengthening the availability of lower-grade steam coal in the auction.

Siarmal stands out with higher-grade offerings

Siarmal OCP has offered 104,000 t of coal, comprising 100,000 t of G11-grade material through road mode and 4,000 t of G12-grade coal through rail dispatch. The mine stands out among the major offerings for its relatively superior grade profile, making it attractive to consumers seeking better-quality fuel.

Other sizeable offerings include 258,500 t of G13-grade coal from Lajkura OCP, 154,000 t of G12 coal from Bhubaneswari OCP, and 104,000 t of G12-grade coal from Ananta OCP. These quantities are available through a combination of road and rail dispatch, providing logistical flexibility to buyers.

Washery rejects add to low-cost fuel availability

A notable feature of the auction is the offer of 200,000 t of washery rejects from IB Valley Coal Washery. The material, with a GCV range of 1,500-1,899 kcal/kg, is being offered entirely through road mode, providing a low-cost fuel option for price-sensitive consumers.

Premium-grade coal available in limited volumes

Higher-grade coal availability remains limited, with Nandira UG mine offering 15,000 t of G7 coal and 5,000 t of G8 coal. Additionally, LBL Integrated OCP has placed 4,400 t of G10 coal on offer. These relatively small volumes are likely to attract interest from consumers seeking superior fuel quality and higher calorific value coal.

Road mode remains the preferred dispatch route

Road mode continues to account for the majority of the offered volumes, while rail-linked quantities remain limited to rake-fit lots from select sidings connected to LBL, Hingula, Lajkura, Samleswari, Bhubaneswari, Ananta, and Siarmal mines.

The dominance of road dispatch is expected to favour regional consumers across the sponge iron, cement and industrial sectors, where transportation economics remain a key procurement factor.

ECL offers limited quantity from a single source

In contrast, ECL has offered a comparatively modest 10,500 t of coal in its upcoming e-auction on 20 June. The entire quantity has been sourced from the Gopinathpur MDO (RS) open-cast mine and is being made available exclusively through road mode.

The auction comprises a single source and grade G7, with coal loading scheduled through the Gopinathpur Colliery weighbridge. Given the limited volume and concentrated offering, bidding activity is likely to be influenced by regional demand conditions and buyers' near-term fuel requirements.

Market outlook

MCL's auction offers substantial availability of mid-grade steam coal, particularly in the G12-G14 segment, with sizeable volumes from key open-cast mines. The large supply base is expected to attract participation from sponge iron producers, cement manufacturers, and other industrial consumers seeking near-term fuel security.

Meanwhile, ECL's relatively small road-mode offering is likely to witness focused participation from regional buyers looking for prompt coal supplies. Overall, auction outcomes will be shaped by prevailing demand conditions, transportation economics and procurement requirements across consuming sectors.