Middle East conflict has disrupted energy supply chains, pushing key mining
input prices higher and squeezing state miner Coal India's profitability.
Company data show explosives for mine blasting were about 26% higher in early
April versus pre-conflict levels, while diesel for mining equipment has risen
roughly 50% since mid-March. Coal India said in April it is absorbing the higher
costs to avoid 'chain effects' on the economy. Despite stronger summer cooling
demand, coal's share of India's power mix this quarter remained around 70% and
renewables rose to a record 19%, prompting roughly an 8% cut in the firm's
output this quarter. Coal India expects coal to remain important in India's
energy mix for at least the next decade but is diversifying into renewables and
critical-minerals extraction in response to long-term challenges.
