Ennore Coke (ECL) is looking at acquiring a mine in the US, where it already has two mines, and plans to invest Rs 125 crore to double the capacity of its manufacturing units in Haldia (West Bengal) and Cuttack (Orissa), a top company official said.
ECL is promoted by Haldia Coke and Chemicals and manufactures high quality low ash metallurgical coke.
"We are looking at acquiring one more mine in the US. We already have one each in Virginia and Arkansas from where we get our raw material. We hope to acquire the same in the next fiscal (FY12). Besides, we also plan to expand the production capacity in both our units. We will invest around Rs 125 crore," ECL's Managing Director Ganesh Natarajan told PTI here today on the sidelines of an event by mJunction.
Natarajan, however, said that the company is not looking at any other geography for mining activities except the US.
The company will be investing close to Rs 85 crore to double the capacity of Wellman Coke India in Cuttack to 1,60,000 tonnes over the next 15 months, Natarajan said, adding that it also plans a 10 Mw co-generation power plant there.
He also said that in FY12, the company would set up a 12 Mw captive power plant in its Haldia unit, whose capacity would be increased from the current 1,30,000 tonnes to 2,60,000 tonnes by then.
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On prices of coke and coking coal, Natarajan said while coke prices are likely to remain flat at $430 FOB for the next three to four months, coking coal might increase by 3-4 per cent from the current $245 a tonne in the fourth quarter of this fiscal.
The hike in prices would be driven by growth in steel and automotive industry and increase in demand, he added.
Asked about export, Natarajan said the company export 40 per cent of the coke produced to countries such as the US, Turkey, South Africa and Pakistan. It expects exports to go up to 80 per cent this fiscal and plans to enter new geographies.
"We expect our exports to increase up to 80 per cent from the current 60 per cent. This would help improve our top-line. We are eyeing a Rs 600 crore turnover in the current fiscal. Last fiscal, it was Rs 386 crore," Natarajan said.
He also said that it is expecting its first shipment (in this fiscal) of 40,000 tonnes of coal from the US by December. The second shipment of 60,000 tonnes would reach Indian shores by January next.