Gujarat NRE acquires Australian mine
Gujarat NRE Coke completes the acquisition of the Australia-based Elouera mine from BHP Billiton.business Updated: Dec 24, 2007 11:42 IST
Gujarat NRE Coke on Monday said it has completed the acquisition of the Australia-based Elouera mine from BHP Billiton a part of the Australia-based Illawarra Coal Business for an undisclosed amount.
The acquisition was made by Gujarat NRE Resources NL (Gujarat), the Australian flagship firm of the Gujarat NRE Coke group, the producer of metallurgical coke informed the Bombay Stock Exchange.
The coal lease and associated licences, including the mine, would be transferred along with associated land holdings and the responsibility for rehabilitation and closure of the mine once operations are complete, it added.
Post-transfer, the mine would be re-christened NRE Wongawilli, the company said, adding the acquisition would give Gujarat NRE group ready infrastructure, including mining equipment and railway access to Port Kembla.
Gujarat NRE Resources intends to start mining from February 2008, with development work on the first of the three longwall blocks commencing with immediate effect.
Large reserves of coal exist in the combined Wongawilli and Avondale leases that would provide over 20 years of mine life. With the global surge in coal demand, the buyout is expected to reap good benefits for the group, the firm said.
The Elouera Mine would help NRE Group's objective to increase its export to India to make better profit from the demand supply mismatch and the resultant price hikes.
In a separate filing the company said it has received shareholders' approval for raising the holding limit of FII in the shares of the firm beyond 24 per cent, up to the sectoral cap of 74 per cent, applicable in compliance with the RBI norms.
Besides, the shareholders have also approved the Issue of Convertible Warrants to promoters or promoter group companies on private placement basis.