Guj NRE Coke plans Rs 700cr ANZ mines spend

Metallurgical coke manufacturer Gujarat NRE Coke today announced plans to spend Rs 600-700 crore over five years in developing coal mines in Australian and New Zealand.

The spend will be in the form of stake-buys, raising stakes as well as fresh acquisitions, a top company official said.

Of the total expenditure, Rs 150 crore would be spent in FY07, the official added.

The company plans to cash in on the rising demand of coking coal from the Indian steel industry, which is expanding rapidly.

"The driving force is very simply the demand for more and more quality coal for the industry in India," Jagatramka said.

Typically, most Indian coal has high ash content and is blended with better quality imported coal, used in steel making.

The company is looking at acquiring mines in Australia and New Zealand since the coal available in these countries has low ash content, the company official said.