Why Straight Coal?

1. To realize true cost of coal being procured

More often a blend coal is supplied by mixing prime coking coal with lower grade coal with
tailoring of technical parameters to the specification requirement given by the purchaser.
Externally it may appear quite acceptable but in real it may not, as coal is a very complex mineral
rock for characterization only on the basis of a limited specification document. Among several
ways, one way to ensure its quality is to ask for neat single source coal coming from a specific
bog head.

Many a time the real cost of the coal is veiled by supply of blended coal where the supplier
charge the cost of prime coal which suits the technical specification. It reality the supplied coal
may contains substantial proportion of lower coking components. By procuring straight coal we
eliminate such hidden cost element charged by the supplier. One example may be sited from
past supply.

BMAT Coal brand was procured science beginning from M/s BMA at a prime coking coal price.
In actual it was a mix of 50% Peak Down (Prime coking) & 50% Gregory (Soft coking). Now at
present we are procuring them as separate with differential pricing (from 2009 October). Due to
differential pricing under the policy of straight coal we are able to recover an amount to the tune
of 8 to 10 USD per ton of coal procured against BMAT science 2009 October.

2. Avoid Contaminants in supply

3. More flexibility in blending & better logistics

4. Obtain accuracy in target blend property

5. Tailoring coke quality to different requirement

6. Flexibility of supplier base

7. Better handling at RMHP