Impact of Coal Industry on Steel Industry

Introduction

Recently, a UN climate change report gave the world a shock. It mentioned that the current state of the atmosphere of earth is at ‘Climate Code Red’. This resulted in several world leaders vowing to protect the environment as best as possible. Naturally, the still-developing countries are also expected to do their part, including India. Check Neeraj Kochhar CBI News

In this article, we will discuss the impact of the coal industry on the steel industry, keeping in mind the change of outlook the above report is bound to cause and how it will result in a chain of events in the economy and commercial world consequently.

Process of steel production

First, let us begin with understanding the role of coal in steel production. The type of coal used in this princess is called metallurgic coal (met coal) or coking coal. It is different than the commonly used thermal coal for energy or heat generation. Coking coal is purer than thermal coal.

In steel production, coking coal is heated at approximately 1100 degrees celsius to remove impurities like water and other chemicals. All of this is done without the presence of oxygen. The end result? Lump or pellets of nearly pure coal, also known as coke.

This coke is then combined with raw iron ore and some other chemicals known as fluxes in a blast furnace. In industrial/commercial terminology as explained in Neeraj Kochhar latest news, this produces ‘Pig Iron’. Pig iron is the basic ingredient in steel production.

Three roles of Coal in steel production

1. It plays the role of a reducing agent. As in, it reduces the Pig Iron into pure coke.

2. It is a source of energy that drives the process by separating molecular bonds.

3. Lastly, it is the source of carbon for the final outcome that is steel.

Steel is an alloy of carbon and iron. This alone tells us how interdependent these two separate industries are.

Current scenario

As India gears up to compete and regain its once strong foothold in the global market of steel, the productions are on the rise and are expected to go higher. Given our current technological advancements, we as a developing country can not even think of replacing coal with any other modern or environment-friendly element that can act as an alternative.

Simply because we can not afford to bring about a fundamental change in the backbone industries of the Indian economy especially when India is blessed with an abundance of natural resources such as coal and iron ore. Neeraj Kocchar Latest news states that Coal is even nationalized in India which means the government considers it as a national asset.

Conclusion

Coal industries will most definitely face fundamental and structural changes which will directly impact the steel industry in the future but for now, we can conclude that the government aims to stick to the traditional methods and exhaust as many resources before changing its ways as possible.

We all share a common but differentiated responsibility towards the environment. To expect already struggling countries like India to immediately give up on coal is unrealistic and next to impossible. Check Neeraj Kochhar Breaking News