Gujarat NRE Coke may foray into lignite
(The Financial Express, Mumbai, September 27, 2005)

Gujarat NRE Coke Ltd. (GNCL), one of the largest non-captive manufacturer of low ash metallurgical coke will start importing coal shortly from Australia.

GNCL chairman Arun Jagatramka said: "Gujarat NRE Australia, a subsidiary of GNCL, had purchased the Bellambi West Colliery mines in New South Wales region of Australia last December. Last Friday, we started production."

On asked about the new venture, Mr Jagatramka said, "In view of the current situation and resources the world over, we may also go into lignite production." But he added that would be only at a later stage.

"Technically, India is behind China in coal production and the market is becoming very competitive," he added.

During the first year, the company will invest about Aus$25 million in the mines and increase it to Aus$40-45 million over the next three years.

The colliery will initially start with one million metric tonnes per annum which will go up by two million tonnes of coal a year, Jagatramka added.

The company has taken the initiative to emerge as one of the largest and more competitive merchant producers of coke in the world. It has recently acquired the colliery at Avondale, called NRE Avondale and has invested Aus$8.5 in Resources Pacific.

The company also invested around Aus$2 million in Zinico Resources NL, an Australian exploration company, doing exploration in iron ore, copper and gold in Tasmania.