Gujarat NRE ties up with Aussie firm

The Kolkata-based Gujarat NRE Coke Ltd, which has substantial amount of investment in Gujarat, on Wednesday entered into an alliance with the Australia-based BHP Billiton Illawarra Coal.

Recently Gujarat NRE had entered into an agreement with BHP Billiton to acquire a coal mine in Australia. The acquisition was done through the company's Australian subsidiary called Gujarat NRE Australia Pvt Ltd. Gujarat NRE Coke holds a majority stake in the company.

"It links the coal miner to the customer to provide quality supply while utilising the resources of both the countries to the fullest," said Arun Kumar Jagatramka, chairman, Gujarat NRE Australia, and managing director of Gujarat NRE Coke, through a statement.

Jagatramka said the alliance will see Gujarat NRE mine in the Australian mine called NRE No 1 Mine' by using BHP Billiton's processing facilities at Port Kembla.

The alliance will provide coking coal to be used by Gujarat NRE in its operations in Gujarat. Coal production at the mine will commence in early 2005 and preparations have begun to secure the necessary machinery and skilled labour force.

Specialised mining equipment will be utilised to increase production over the next three years to as much as two million tonne per annum.

"The project gives the opportunity for the coal industry to provide extra jobs and value to the Illawarra community. Strategic alliances like these are one of the best ways we can maximise Australia's value in the world community and add value to the regional economy," said Colin Bloomfield, president, BHP.

Gujarat NRE has tied up with its entire requirement of coking coal requirement for its coke plant at Jamnagar and the new unit being set up near Kandla Port for 2004-05 with Australian and South African Coal Mining Companies.

Till last year, the company was sourcing its entire coking coal requirement from BHP Billiton. For the current year BHP Billiton has renewed their coal supply contract with the company.

The company has also gone for a long-term deal with Khumba Resources of South Africa for an additional source of coking coal and has also entered into few other contracts with other Australian coal companies for the balance requirement of 2004-05.