Coal on Roll: Gujarat NRE's first coalfield in Oz bears fruit
(The Economic Times, Ahmedabad, January 9, 2006)

40,000 Tonnes Of Coking Coal From Australian Coalfield Number One Docks At Bedi Port

The first consignment of 40,000 tonnes of coking coal, used as raw material in coke making, from the Gujarat NRE Coke’s first Australian coal field docked on Bedi port on Saturday morning. The closed Australian coal mine, which was acquired by Gujarat NRE Coke a year ago and renamed Australian Coal Field Number One, went onstream in September 2005.

“The biggest challenge of successfully starting production from a closed coal mine has been achieved and exports to India too have begun now. In the following two months more exports to the tune of 150,000 tonnes coal is expected from this coal mine,” Arun K Jagatramka, Vice Chairman, Gujarat NRE Coke told ET. The production from the coal mine has gone up and ships carrying 60,000 tonnes and 75,000 tonnes coal is expected to reach Bedi port in February and March. By the calendar year end, the company hopes to meet about 60-70 per cent of its total coking coal requirements of about 600,000 per annum for its two units in Jamnagar and Kutchh.

In addition, the company will sell the coking coal residue as thermal coal. “After washing about 30% of coking coal become unsuitable for coke making which we plan to sell to power-generating units in the region,” Jagatramka said.

The company’s bulk raw material requirement so far is being met by BHP Billiton with which it has a long-term contract. “BHP Billiton supplies about 300,000 tonnes of coal which we will continue to buy. In the event of surplus it will be sold in the open market,” Jagatramka said. BHP Billiton will supply 100 per cent coal for Gujarat NRE’s new unit set up in Dharwad in Karnataka. However, Australian coal is expected to be brought in Dharwad unit as well and the company is currently contemplating on setting up a washery here. “The washery should come up by this calendar year end,” Jagatramka said. He however, refused to give details on capacity and investment envisaged in this project.

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