Ahmedabad, May 5 (UNI) Australian coal mining major Zelos Resources has executed an agreement to acquire Avondale Coal Project in New South Wales from 'Gujarat NRE Coke Ltd' (GNCL).
The acquisition will help GNCL to enter into an off-take agreement with Zelos to acquire 100 per cent coal production from Avondale, known to have 200 million tonnes of high quality hard cooking coal in and around the existing coalfields.
While Avondale is wholly-owned by Gujarat NRE Coke, it also has 19 per cent share in Zelos, GNCL Managing Director Arun Jagatramka told UNI here yesterday.
With this acquisition, he said, the total worth of the company will be around 37 million dollars resulting in Zelos becoming a partly-owned subsidiary of GNCL. The shareholders of the company will be asked to approve a change of name too, from Zelos to 'Gujarat NRE Resources NL'.
GNCL is in the process of advancing transfers and approvals for the Avondale Project and these will now be taken forward under the ownership of Zelos, he said.
UNI VKC CS DB1047