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Russian mining and steel group Mechel said Tuesday it jointly set up with Somani Group of India to distribute metallurgical coals to a wider range of small to large-scale customers in India.

The Mechel Somani Carbon Private Ltd, India, joint venture's initial main distribution area will be located on India's east coast, 20 km (12 miles) from the major port of Vizag, according to a Mechel statement. Other distribution areas are planned to follow within several years to boost sales, it added.
"We have been working with Indian consumers of our coals for several years and consider India to be a promising and strategically important market," Mechel's VP for commercial activities, Mikhail Urvantsev, said in the company statement. "Until now we have been delivering our products only to large-scale consumers. In setting up this joint venture, we will expand the Indian market for us due to a large number of consumers desiring to acquire smaller-sized shipments of our products."

Mechel produces a range of coking coals and anthracites, including its K9 and K10 products, which have low volatile matter and very low sulfur, but also a relatively low score for coke strength after reaction.

These are shipped to customers in Asia from its Far East Russian port of Posyet, which is undergoing expansion in loading capacity to target greater import volumes to China, South Korea, Japan as well as to India.

Mechel Mining unit Mechel Carbon AG and Somani's Northern Exim are the two subsidiaries involved in the new venture, with the Mechel company owing a 51% stake.