Gujarat NRE mines in Australia going full throttle, rides new high prices of coke

Kolkata, August 11h 2008. Gujarat NRE Coke's two mines in New South Wales, Australia is all set to attain critical mass in the current fiscal. The first mine of the company, NRE No. 1, whose mining infrastructure has been completely refurbished over the last couple of years and now the mine has gone to 7 day production with the introduction of weekend rosters recently. The development project WONGA MAINS is also proceeding well and is on track to ramp up production from the mine to a level of around 4 million TPA.

Gujarat NRE Coke's second mine in Australia, NRE Woongawilli too is humming with activity. This mine has just seen the introduction of a brand new continuous miner from Sandvik, Austria which would further help ramp up its production.  The company is also in the process of completing all the background studies and other formalities for complying with the new requirement for DA under part 3A of the NSW planning regulations in respect of both the mines. Both mines produce premium hard Coking coal obtained after washing in India and is  being shipped out of Port Kembla to the company's facilities in India. The augmented production comes at a time when there is a global shortage of Coking coal with prices reaching historic high's.

Gujarat NRE Coke, India's largest merchant producer of coke has already posted bumper figures in the current year along with enhanced dividends and bonus shares for its shareholders. Going by the coke price trends that have seen a quantum jump since the books were closed and the fact that larger and larger quantities of its raw material needs will be met from in house sources  there is reason to believe that the current fiscal year will be a very prosperous one for the company and its shareholders.

The company has also made public its plans to set up a Greenfield 1 million tons per annum coke plant in Andhra Pradesh. This plant too will have its captive power plant and coal washery to ensure fully integrated functioning. With the Indian steel making capacities set to more than treble over the next decade, the demand for coke too is expected to grow at a robust rate. When  the fact that globally, there is a demand supply mismatch in the commodity the upward spiral in the prices seem not only justified but also one that will, according to experts continue to seek newer high's.

Gujarat NRE Coke limited which has 22 wind mills in the Kutch Region of Gujarat, has already set up 20 wind mills this year and is also in the process of setting up further 20 wind mills which, when  commissioned will take the company's power generating capacities to 87.5 MWs. The company is also in the process of setting up waste heat power generating systems which will use the waste heat from the coke making process and generate  60 MW of power.

For More Information Contact :
Suvobrata Ganguly
+ 91 9831008013
[email protected]

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