The company has two mines in Australia and the production from the second coal mine in that country commenced recently. The company expects 1.25 million tonnes from the mines in 2008-09 as against 0.5 million tonnes in the previous year.
Arun Jagatramka, vice-chairman and managing director, Gujarat NRE Coke, said the company plans to set up a greenfield 1 million tonnes coke plant in Nellore, Andhra Pradesh, at an investment of Rs 450 crore. The land for the project has already been acquired and the plant would be onstream in two years.
Jagatramka said in two years, the company's total coke production would be 2.25 million tonnes. At present, the production is 1 million tonnes and another 0.25 million tonne would be added by March in Dharwad, Karnataka.
According to Jagatramka, the demand for coke in India is expected to grow at a very healthy rate as more and more new steel plants are expected.
He said coke prices were currently hovering around $700 a tonne, up from $250 a tonne, a year ago.
Prices are expected to remain at this level for the rest of the year, even as China, a major exporter, is likely to increase the export tax and the Chinese currency is also expected to strengthen. The company is also in the process of installing waste heat recovery power plants with a capacity of 60 mw across all its coke plants at a cost of Rs 300 crore.
