October 07, 2008

Gujarat NRE lines up AUD 300 million investment for mining

BL reported that Gujarat NRE Group’s Australian subsidiary India NRE Minerals Limited has firmed up plans to invest AUD 300 million in mining initiatives in Australia.

As per report, promoters of India NRE Minerals Limited plan to dilute their holding, which currently stands at around 80% of the equity stake in the company in the Australian capital market to part finance the mining initiatives.

Mr Arun Kumar Jagatramka vice CMD of Gujarat NRE Coke Limited and director of India NRE Minerals Limited said that coal mine NRE Avondale and Eulora has been consolidated into one mine that has now been renamed NRE Wongawilli. Earlier, the company had acquired Eulora from BHP Billiton Ltd. He added that the aggregate production from NRE Wongawilli had been pegged at 2.5 million tonnes in the next 3 years. Thereafter, annual production from the mine would be of the order of 2.5 million tonnes.

India NRE Minerals also owns the NRE number 1 colliery in New South Wales. Steps have been initiated to open new entries into the mine and commence mining activities. NRE number 1 has hard coking coal deposits of 300 million tonnes and annual production from the mine has been pegged at 4 million tonnes.