Mumbai: Gujarat NRE Coke Limited today announced it will acquire an Australian coal mine Elouera Colliery from global mining giant BHP Billiton for an undisclosed amount.
The company, through its Australian subsidiary Gujarat NRE FCGL Pty Ltd, signed an agreement with Illawarra Coal Holdings Pty Ltd, a BHP Billiton arm for the acquisition of the mine, the company said in a filing to the stock exchanges.
“Gujarat NRE is delighted with the acquisition. Apart from providing quality infrastructure and mining equipment for company’s southern coalfields production strategy, including a private rail link, it gives the company additional coking coal reserves,” Gujarat NRE Coke Chairman Arun Jagatramka said.
The mine is fully operational and it will produce premium grade hard coking coal. The mine would provide a cheaper and faster option to access the NRE Avondale Colliery.
The acquisition also means that Avondale should be able to come into production much sooner than we had anticipated, “ he added.
After NRE No. 1 Colliery and NRE Avondale Colliery, this would be the third coking coal mine to be acquired by Gujarat NRE in Australia, it said.
With the acquisition the company’s short term production of coal is expected to be boosted to around two million MTPA from one million MTPA, it said.
Gujarat NRE, a leading manufacturer of met coke, had recently rolled out plans to set-up two 15 MW power plants at Bhachau in Gujarat and Dharwad in Karnataka.