Gujarat NRE Minerals to raise up to $100 million
11 August 2008
Kolkata: Gujarat NRE Minerals Ltd, an group company of Gujarat NRE Coke, plans to raise between $50 million and $100 million through a mix of debt and equity, partly to develop and and raise output at its Australian mines.
The company plans to raise funds either through convertible bonds or equity placement to investors in the current fiscal, Arun Jagatramka, its managing director said.
The company is raising output at the Australian mines to 7 million tonnes from 1 million tonne in four years, involving investment of about $450 million during the period. A major part of the expansion would be funded through internal accruals, he said.
Gujarat NRE Coke says its two mines in New South Wales, Australia, are all set to attain critical mass in the current fiscal. Its first mine, NRE No. 1, whose mining infrastructure has been completely refurbished over the last couple of years has gone on an all 7-day production, while its development project on Wonga Mains conveyor roadway is on track to ramp up production from the mine to around 4 million TPA.
The Kolkat-based company's second mine in Australia, NRE Woongawilli has recently introduced a brand new continuous miner from Austrian mining equipment maker Sandvik, which would further help ramp up its production.
The augmented production comes at a time when there is a global shortage of coking coal with prices reaching historic high's. With Indian steel making capacities set to more than treble over the next decade, the company expects the demand for coke to grow rapidly and hopes to benefit from rising prices due to the global demand-supply gap, which it says will push up prices further.
The company said it is also in the process of completing background studies for complying with the new requirement for its development applications under the New South Wales' planning regulations for both mines, which produce premium hard coking coal obtained after washing in India is being shipped out of Port Kembla to the company's facilities in India.
