Coal is one of the oldest sources of Energy in the world. Throughout history, coal is burned to produce electricity and also has applications in metal refinement and extraction of Organic-chemicals. It is estimated that close to 40% of the World’s Electricity comes from Coal & almost all steel produced in the world either through the primary process or through the secondary routes utilize coal in one manner or another.
Even though the world is moving to cleaner fuels, the demand of coal throughout the world is estimated to increase by 0.6% per year 150 Quadrillion in 2012 to close to 180 Quadrillion in 2040. The top 10 countries in the world in terms of coal production produce 90% of the coal extracted per year with China extracting close to 3.6 Billion Tonnes of coal in 2012 accounting for a whopping 47% of the world coal production. The United States and India for another 21% of the world’s coal production with a combined production of 1.5 Billion Tonnes in 2012.
In terms of consumption, China, India & the United States of America remain the top 3 consumers of coal with China alone accounting for half of the world’s coal consumption with India and United States accounting for a further 25% of the coal consumed across the world. The 3 countries also possess the world’s Highest Coal Reserves & count on other coal producing countries such as Australia & Indonesia for coal.
Coal is extracted from the ground by coal mining, either underground by shaft mining, or at ground level by open pit mining extraction. The varieties of Coal that are generally found in India are Anthracite, Bituminous, Lignite, and Peat.
Anthracite Coal is the best quality of coal and contains over 85 per cent carbon. It is very hard, compact, jet black coal having semi-metallic luster. In India, it is found only in Jammu and Kashmir and that too in small quantity.
Bituminous Coal is the most widely used coal and contains 50 to 85 per cent carbon. It is dense, compact, and brittle and is usually of black colour. Most of the bituminous coal is found in Jharkhand, Orissa, West Bengal, Chhattisgarh and Madhya Pradesh.
Lignite also known as brown coal is a lower grade coal and contains about 35-50 per cent carbon. It represents the intermediate stage in the alternation of woody matter into coal. Its colour varies from dark to black brown. It is found in Palna of Rajasthan, Neveli to Tamil Nadu, Lakhimpur of Assam and Karewa of Jammu and Kashmir.
Peat is the first stage of transformation of wood into coal and contains less than 35 per cent carbon. It is seldom sufficiently compact to make a good fuel without compressing into bricks.
Industry that uses Coal:
Here is a list of the Major Uses of Coal
The main use of coal is in the production of electricity. In India in 2012-13, 446.76 million tons coal was used by Electricity Industry. It was followed by Steel and Iron industry (16.15 million tons), Cement industry (13.11million tons) and Paper industry (2.12 million tons).Coke, a product left after heating coal, is used to manufacture iron and steel.
India’s power sector is mainly fuelled by coal, which provides roughly 78% per cent of its capacity and 76 per cent of its total generation. In the past few years, it has become an increasingly important source of growth for coalminers as China and the US have begun to use less of their product. With the country’s population growing rapidly and the government of Narendra Modi promising to electrify the whole country, companies are banking on continued growth for the foreseeable future. Adani Group, one of India’s biggest industrial conglomerates, has given the go-ahead to build a $12.7bn mine in Australia to extract coal that will then be used in its power plants back at home. But IEEFA’s analysis suggests that the growth in coal demand in India’s power sector could slow down more quickly than people expect, and stall entirely by 2027. In its place will come renewables, which provide 7 per cent of generation, but which IEEFA predicts will account for 27 per cent by 2027. The change has come because renewable power, and solar in particular, is falling in price more quickly than analysts predicted. Last week Enel Green Power, the Italian renewable power company, agreed to build a solar park in Mexico for a world record low price of just 1.77 cents per unit of electricity. An analysis by Mercom, a clean energy research company in India shows that in the past quarter the country installed more 2.2 gigawatts of solar power — more than ever before.
Mining of coal in India was nationalized uptill 2018 wherein Public Sector Companies Such as Coal India Limited were responsible for the production of coal to meet the demands of the company. With the repealing of the Coking Coal Mines(Nationalization) Act & the Coal Mines(Nationalization) Act in 2018, the coal mining industry is set to undergo a paradigm shift in terms of productivity and efficiency as Private players are being auctioned Coal Blocks for mining to the highest bidder offering the highest Per MT Prices for the mines. The country currently has 12 major Coal Mining Blocks which are located in the states of Jharkhand, West Bengal, Chatissgarh, Orissa, Tamil Nadu &Telengana which account for more than 95% of the coal production in the country.
Compared to oil, about half of which moves across national borders before being consumed, around 85% of coal is mined in an indistinguishable nation from it is singed. In any case, coal sends out are developing in significance, as increments in coal-terminated power age in India and China outpace increments in coal generation in those nations. Progressively, Indian and Chinese organizations are not just purchasing expanded measures of coal from abroad, but at the same time are putting resources into mines or purchasing mines by and large in Australia, Indonesia, Mongolia, Russia, South Africa, the United States, Tanzania, Zambia.
At present, the world's driving exporters of coal are Australia and Indonesia, which together accounted in 2010 for over portion of the overall aggregate. Different exporters, arranged by tonnage, are Russia, Colombia, South Africa, and the United States.
With interest for coal by U.S. control makers on the decay, coal digging organizations are searching for fares to fill the hole. As of now, heft of U.S. coal dug for trade originates from Central Appalachia. Around 66% of U.S. coal sends out are high-BTU metallurgical or "coking" coal utilized for steelmaking. Recommendations for extension of fares center around sending coal from the Powder River Basin of Wyoming and Montana over rail lines to West Coast ports for shipment to Asian purchasers. Prospects for such an extension have incited real resistance from a wide exhibit of native gatherings
Uptill Recently, Coal India Limited held a Monopoly over the coal trade in the country with close to 95% of the coal being produced in the country being sold by them. Private companies were sold coal through auctions and quota established in as per the Nationalization Act with a lot of coal coming into the secondary market for reselling from companies which have existing quotas but not as much requirement. The supply chain of coal in India still contains has presence of Coal Mafia’s which control the movement of Coal to the private companies & act as a hinderance for Reforms in the Coal Trade and Coal Mining in the country.
This document pertains to the trade of Coal on Tradologie.com as per the specifications, Timelines and Terms and Conditions Set Forth.
The buyer shall have the option to request for quotes for the following standard types of Coal
Buyers shall have the option to specify the Gross Calorific Value (GCV) of the coal from the following Range Set :-
The Buyer shall also be able to select the Minimum Size of Coal from the following
Quotes and Deliveries of Coal for any of the above mentioned standardized Grades shall be required to conform to BIS or Equivalent International Standards.
The buyer shall have the option to request for quotes for Custom Grades. In such a scenario, the Sellers shall be Required to Offer Quotes and Delivery Conforming to the Specifications mentioned by the Buyer.
The sellers shall also need to adhere to other quality specifications as specified by the buyer at the time of floating of enquiry.
Coal can be bought in the Multiples of 1 Metric Tonne (MT) from the Tradologie Platform with 25MT being the Minimum Order Size.
Unless Expressly Specified by the Buyer, Rates shall be Quoted for 1MT of Coal inclusive of All Taxes, freight till the delivery location, insurance and all charges pertaining to delivery at site mentioned by the buyer.
Buyer has option to Specify whether he shall require Rates to be quoted Ex-factory. In such a scenario, the buyer shall specify the same in the Delivery Condition Column. Sellers are advised not to add delivery related charges including Insurance while quoting the rates to the buyer if rates are sought Ex-Factory.
Payment Obligations can be completed by the buyer using 2 Routes for purchases made through Tradologie.com
The Route being preferred by the buyer shall need to be intimated at the time of setting up of Enquiry. In Case of LC route, Buyer shall need to specify Bank opening the LC and upload sample LC format at the time of Setting up enquiry.
Buyer can Specify whether he shall be requiring the complete material together or shall be accepting Partial Shipments. The Buyer shall also be at Liberty to specify his Priority of Material at the Time of Floating of Enquiry.
The Sellers are Bound to adhere to the Delivery Logic Specified by the buyer and the sellers should ensure that the complete material is dispatched before the last date of Dispatch.
Comprehensive Delivery Schedule can be Specified by the buyer in the Purchase Order released by them. Seller are advised to read the Purchase Order Carefully before accepting it and check for any difference from the terms of delivery mentioned at the time of floating the enquiry. In case of any deviation, sellers are advised to contact Tradologie.com before accepting Purchase Order immediately.
The Currency for Trade shall be INR for Domestic Trade in India. For Purchases on High Seas Basis, Currency for Trade shall be USD.
The following table specifies the time slots applicable to various activities performed on the site TRADOLOGIE.COM for the Purchase of Cement. The Time frame till Completion of Buyer Payment obligation through the LC Route is as below:-
|Enquiry Setup||Pay Performance Guarantee Deposit||Buyer||At the Time of Setting up of Enquiry|
|LC||Pay Performance Guarantee Deposit (PGD) +participation fees to participate in the negotiation||Seller||Till one minute prior to completion of the live negotiation session||A seller can make payment of Performance Guarantee even 1 Minute Prior to close of Negotiations|
|LC||Give Counter Offer||Buyer||Within 15 Minutes from the End of the Negotiations||Buyers can provide Counter Offer to Maximum 3 preferred Sellers.|
|LC||Accept/Reject Counter Offer||Seller||Within 15 Minutes of Receiving the Counter Offer||In Case of No Response, the Counter Offer shall be automatically rejected at the end of 15 Minutes.|
|LC||Place order after completing negotiation||Buyer||3 hours||The prices quoted by seller are firm for 3 hours prior to Close of Negotiation Window|
|LC||Accept the order terms||Seller||Within 6 hours of completion of the negotiation||The order shall be deemed to be accepted if the same is not accepted by the seller within the stipulated time. In case of any issue, the seller is to contact email@example.com before the end of the stipulated period.|
|LC||Create the PO after seller accepts order terms.||Buyer||24 hours||In case the PO is not uploaded, the same shall be deemed as default of the buyer.|
|LC||Accept PO & Download Identification Proofs||Seller||3 hours after the buyer uploads the PO.||If the seller does not accept, then the order is automatically accepted at the end of day.|
|LC||Upload LC||Buyer||Within 3 working days upon the acceptance of the PO by the seller.|
|LC||Accept LC||Seller||Within 3 days after the buyer uploads the LC in favour of the seller.||Seller must get the LC validated and approved by his bank within 2 days.|
The Timelines for operations under the ESCROW route are as follows: -
|ESCROW||Pay PGD+participation fees to participate in the negotiation||Seller||Till one minute prior to completion of the live negotiation session|
|ESCROW||Place order after completing negotiation||Buyer||3 hour||The prices quoted by seller are firm for 1 hours prior to Close of Negotiation Window|
|ESCROW||Give Counter Offer||Buyer||Within 15 Minutes from the End of the Negotiations||Buyers can provide Counter Offer to Maximum 3 preferred Sellers.|
|ESCROW||Accept/Reject Counter Offer||Seller||Within 15 Minutes of Receiving the Counter Offer||In Case of No Response, the Counter Offer shall be automatically rejected at the end of 15 Minutes.|
|ESCROW||Accept the order terms||Seller||Within 6 hours of completion of the negotiation||The order shall be deemed to be accepted if the same is not accepted by the seller within the stipulated time. In case of any issue, the seller is to contact firstname.lastname@example.org before the end of the stipulated period.|
|ESCROW||Create the PO after seller accepts order terms & Upload Check of Rs. 10 along with the Copy of Authority Letter, Photo and ID Proof of person taking Delivery||Buyer||24 Hours||In case the PO is not uploaded, the same shall be deemed as default of the buyer.|
|ESCROW||Accept PO& Download Identification Proofs||Seller||3 hours after the buyer uploads the PO.||If the seller doesnot accept, then the order is automatically accepted at the end of day.|
|ESCROW||Make Payment in ESCROW||Buyer||Till 3 days Prior to the Last Date of Dispatch||Till 3 days Prior to the Last Date of Dispatch|
The timelines for Post Payment are as follows :-
|Quality Check||Upload Quality Certificate||Seller||Till 1 day Prior to the last Date of Dispatch|
|Quality Check||Approve Inspection Document||Buyer||Within 6 Hours of Upload|
|Delivery Document||Upload Bill and Proof of Handing over of Delivery||Seller||Till the last Minute of the Last Date of Dispatch||Seller to contact Helpdesk for any issues.|
|Dispatch Document||Approve Dispatch Document||Buyer||Within 10 Hours of Upload||In case the Buyer doesnot approve, the same shall be deemed accepted at the end of day.|
Notes:Tradologie.com shall be issuing Delivery Order to the seller upon the receipt of payment from the buyer which shall include the amount received from the buyer in ESCROW. Delivery is to be affected to the Buyer only upon the receipt of this confirmation.
Performance Guarantee Deposit is paid by both the buyer and seller for each order.
Performance Guarantee Deposit = Quantity * Reference Price * Category %
Note: The Reference Price for items currently being traded is provided in this document. The reference price for an item can be updated without prior notice.
Note: The Category % is dependent on the category of the item being traded. The Category % can be updated without prior notice.
The commission fees are calculated based on the invoiced value of the order and commission rate applicable as per the seller's membership type:
Commission Fees = Invoiced value of the order * applicable commission rate
|S. No||Product Category||Reference Price||Category %||Base Commission %|
|1.||Coal||Rs. 8,000 Per MT||1.0||1.25%|
Ans:- Tradologie.com provides the buyer’s Opportunity to bring Coal Suppliers Across the World on One Single Window where they compete against each other to provide the Buyer with the Best Rates. Tradologie.com seamlessly completes all possible tasks entrusted to the procurement department of any firm by enabling Buyer’s to give counter offer to any chosen Seller and even split orders amongst different sellers so that the buyers can purchase the material efficiently and cost effectively.Q2:- Who are the sellers providing Rates of Coal through Tradologie.com?
Ans:- Tradologie.com only empanels sellers who are major importers of Coal in the country or have established Credentials in the coal market in India. Only after completing KYC and gathering Market Information about the credibility of each and every supplier, does Tradologie.com provide access for them to Quote Rates to the buyer.Q3:- How will Tradologie.com Deal with Quality Issues in Coal?
Ans:- Tradologie.com adopts a 2 pronged approach in settlement of issues pertaining to Quality. If a concern is raised by the buyer in the quality of the material supplied, Tradologie.com submits the same to the Seller and allows them to sort out the issue with the buyer amicably within a stipulated timeframe (generally 48-72 hours). If the buyer and seller are able to reach to an amicable settlement pertaining to the quality, the settlement is deemed to be final and payout is made to the seller from the ESCROW account as per the settlement. However, in case no settlement is reached, Tradologie.com appoints a reputed Third Party inspection agency (TPIA) to check the quality of the material (generally within 48-72 hours after window of amicable settlement) and the decision of the Inspection Agency Remains Binding on both Buyer and Seller. The cost of the TPIA is bourne by the party (buyer or Seller) whose claim is found to be false.Q4:- Who are the buyers of Coal on Tradologie.com?
Ans:- Tradologie.com targets industries in the Steel, Cement, Paper, Bricks and Rubber/Plastic Segment who have large requirement of coal and are already consuming coal for their heating and energy needs.