Gujarat NRE ramps up coking coal production at its Australian mine
06 Sep 2010
Gujarat NRE Coking Coal Ltd, the Australian subsidiary of Gujarat NRE Coke ltd, has reported a production breakthrough at its New Wongawilli Colliery, in Australia.
Gujarat NRE Coking Coal Ltd has ramped up production at its Australian mine, the company said in a filing with it's the Bombay Stock Exchange (BSE).
The company exports coal from its two underground mines in New South Wales to steel end-users in India via the Kembla port terminal.
The coal is sold unwashed to Gujarat NRE Coke Ltd, which in turn sells it to domestic consumers.
The company, meanwhile, started pricing coal on a quarterly basis since mid-2010, in line with the contracts adopted by market leader BHP Billiton and other coal majors.
With the Bulli, Wongawilli and Tongarra seams, Gujarat NRE Coking Coal Ltd is the third-largest supplier of coking coal on the ASX outside the major companies like Riversdale and Aquila.
The company plans to ramp up production from the current 1.2 million tonnes per annum to around 6 million tonnes by 2015. The company has already raised $50 million in late 2009 to fund an expansion plan.
In May, the company also reported an increase in reserves at its top mine to 92 million tonnes from 18 million tonnes assessed earlier.