Gujarat NRE group completes acquisition of Elouera mine

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Ahmedabad, Dec 22: Gujarat NRE Resources NL, the Australian flagship of the Gujarat NRE Coke group, today announced that it has completed the acquisition of the Elouera mine in New South Wales, Australia.

The acquisition of the Elouera Mine will accord the Gujarat NRE group ready infrastructure, including mining equipment and railway access to port Kembla. According to the current plans, Gujarat intends to commence mining from February 2008, with development works commencing for the first of three longwall Blocks with immediate effect.

It also stated that it plans, in addition to mining the remaining longwall blocks, develop new heading towards the South and West to access the Avondale lease area which Company owns. Large reserves of coal exist in the combined Wongawilli and Avondale leases, which will provide more than 20 years of mine life, according to Gujarat NRE sources.

This viewed in the backdrop of a global surge in the demand for coal, the acquisition of the mine is expected to reap a windfall for the group. It will be pertinent to note here that Gujarat NRE coke is India's largest independent producer of Metallurgical Coke which is currently witnessing a tremendous upswing.

As a critical component for steel making, its demand is surging by the day, while the supply side is witnessing a squeeze, following China's move towards licensed and controlled exports. The Elouera Mine will thus add to the NRE Group's stated objective of increasing its exports into India with a view towards profiting from this demand supply mismatch and the resultant price hikes.

UNI

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