Monday, May 18, 2009

Gujarat NRE To Increase Australian Coal Production

Gujarat NRE Coke, one of the largest independent producers of met coke in India, plans to ramp up production in its two Australian coking
coal mines from 0.8 million tonnes in 2008-09 to 2 mt this fiscal.

The company’s Australian subsidiary — Gujarat NRE Minerals Ltd — which recently secured a $50 million long-term loan to support the mine development, expects to obtain another $25 million loan in a month’s time. The company is also open to new Australian mine acquisitions and is set to emerge as one of the largest coking coal producers in Australia.

"We are looking at new mining assets in Australia. We already have the infrastructure and a strong team there and hence it makes sense to undertake acquisitions in Australia. This apart, we will more than double production from the mines this year," Gujarat NRE Coke chief financial officer P.R. Kannan said.

Bennett, Coleman & Co. Ltd (BCCL) has invested Rs 20 crore in Gujarat NRE Coke through the preferential allotment route.

Gujarat NRE has set a target to sell at least one million tonnes of coke this year even amidst the global recession compared to 0.9 million tonnes in 2008-09. "While 35% of our sales last year were generated from exports to Brazil, Argentina and Europe, it will come down this year due to poor international demand and likely to contribute around 15%.

The domestic market, which is affected to a lesser extent, will make up for the shortfall," said Mr Kannan. The company, which is setting up 60 MW captive power units in its plants in Dharwad, Khambalia and Bhachau, plans to commission them by June 2010. "The first phase of 15 MW is expected to be operational by December. The investment behind these plants, which will use the waste heat recovery process, is around Rs 240 crore," said Mr Kannan.

Source: Economic Times

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