Gujarat NRE Group company India NRE Minerals Ltd, which is listed on the Australian Stock Exchange, has firmed up plans to invest A$300 million in mining initiatives in Australia.

This follows the consolidation of two company-owned mines in New South Wales, Australia.

The promoters of India NRE Minerals Ltd plan to dilute their holding – which currently stands at around 80 per cent of the equity stake in the company – in the Australian capital market to part-finance the mining initiatives.

According to Mr Arun Kumar Jagatramka, Vice-Chairman & Managing Director of Gujarat NRE Coke Ltd and Director of India NRE Minerals Ltd, 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.

Mr Jagatramka told Business Line that the aggregate production from NRE Wongawilli had been pegged at 2.5 million tonnes (mt) in the next three years.

Thereafter, annual production from the mine would be of the order of 2.5 mt. India NRE Minerals also owns the NRE No. 1 colliery in New South Wales. Steps have been initiated to open new entries into the mine and commence mining activities. NRE No. 1 has hard coking coal deposits of 300 mt and annual production from the mine has been pegged at 4 mt.

Mr Jagatramka ruled out immediate plans to commence mining activities in other geographies.

Source