Gujarat NRE Coke completes acquisition of BHP mine in Australia
24 Dec 2007
Mumbai: Gujarat NRE Coke has completed the acquisition of the Australia-based Elouera mine of BHP Billiton, a part of the Australia-based Illawarra Coal Business, for an undisclosed sum.
The acquisition was made through Gujarat NRE Resources NL (Gujarat), the Australian arm of Gujarat NRE Coke, the producer of metallurgical coke informed the Bombay Stock Exchange.
Completion of the sale follows the transfer of the coal lease and associated licences, and includes the mine, associated land holdings and the responsibility for rehabilitation and closure of the mine once operations are complete. The company proposes to rename the mine as NRE Wongawilli.
The acquisition of the Elouera mine will accord the Gujarat NRE group ready infrastructure, including mining equipment and railway access to Port Kembla. Gujarat NRE intends to commence mining from February 2008, with development works commencing for the first of three longwall blocks with immediate effect.
The company also plans to develop new headings towards the south and west to access the Avondale lease area, which the company owns. Large reserves of coal exist in the combined Wongawilli and Avondale leases, which will provide more than 20 years of mine life, the company said in the release.
Gujarat NRE Coke is India's largest independent producer of metallurgical coke, a critical component for steel making. Demand for metallurgical coal is surging by the day while the supply side is witnessing a squeeze, following China's move towards licensed and controlled exports.
In a separate filing the company said it has received shareholders' approval for raising the holding limit of FII in the shares of the firm beyond 24 per cent, up to the sectoral cap of 74 per cent, applicable in compliance to the RBI norms.
Besides, the shareholders have also approved the Issue of convertible warrants to promoters or promoter group companies on private placement basis.
