It is reported that coal demand in India was increasing at a robust rate and it was expected that the country would need to import 110 million tonne of steam and coking coal a year by 2012 to satisfy domestic demand.
Mr Viresh Oberoi MD & CEO of mJunction Services said some 25 million tonnes of that import requirements would come from South Africa.

He said that India coal demand for the 2010 financial year would be 611 million tonnes and that it would increase to 640 million tonnes in 2011 and to 726 million tonnes in 2012.

Mr Oberoi elaborated that coal demand was driven predominantly by the power generation, steel and cement sectors, which consumed 60%, 7%, and 5% of coal respectively.
Demand for imported coal was primarily being met by Indonesian coal exporters, which accounted for 63% of total imports into India. South African coal accounts for 32% of India imports and Oberoi noted that South African was gaining market share on a yearly basis.

South Africa exported 17.7 million tonnes of coal to India in 2009, and the industry estimated that as much as 75% of the country's exports could go to Asia in the future.

Mr Oberoi continued that a distinct advantage for South African exporters was that demand for thermal coal imports was expected to increase significantly.