Gujarat NRE Coke Ltd, which is increasing coal production at its mines in Australia, is planning to acquire half-a-dozen bulk carriers to bring coal to India.
“We are in the process of acquiring on lease charter six bulk carriers with the option of buying them out. These carriers are now under construction in shipyards and will be progressively put into use from 2010 onwards,” said Mr Arun Kumar Jagatramka, Vice-Chairman and Managing Director.
The company is planning to increase its production substantially from the two Australian mines it owns in the next couple of years and is evaluating plans to ramp up processing capacities in India to deal with the increase in production, he said.
Gujarat NRE Coke is aiming to garner a substantial share in the 25-million-tonne coke market globally, which is expected to triple to 75 million tonnes by 2011-12. It is the largest non-captive manufacturer of low-ash metallurgical coke in the country.
“Originally, we planned to mine about seven million tonnes [of] coking coal. However, considering the ongoing prices of coal, we have upped the target. We are currently revising our plans and would mine about 10-12 million tonnes of coal as part of our desire to emerge among the top 10 players in the sector globally.”
Gujarat NRE produced about 900,000 tonnes of coking coal during 2006-07, compared with 600,000 tonnes the year before. The soaring coking coal prices were perceived as speculative phenomena initially but it is increasing firmly.
Asked about the plans for the company’s coking units in India, Mr Jagatramka said, “We are evaluating our plans for Indian units. We might expand the existing capacity or set up new facility. We don’t see coal prices coming down in the near future.”
Gujarat NRE is the only Indian company to own and operate coal mines in Australia. Through its listed subsidiaries in Australia, the company operates two mines in the New South Wales region with combined resources of more than 560 million tonnes of premium quality hard coking coal and their ownership accords the company the much sought after cover against erratic supplies. Mine ownership also provides a hedge against global price fluctuations.
In India, the company has three plants in Khambhalia, Bhachau (Gujarat) and Dharwad (Dharwad) The company also has strategic investments in resource prospecting companies in Australia. Its subsidiary, Gujarat NRE Mineral Resources, is prospecting for petroleum derivatives in a 10,000 sq km tenement in the Canning Basin Region of Australia. Geo-seismic studies are at an advanced stage, Mr Jagatramka added.
Source: The Hindu Business Line
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