Gujarat NRE to up coke pile, cart more coal

MUMBAI: Kolkata-based Gujarat NRE Coke Ltd is increasing production of low-ash metallurgical coke (LAMC) from 1 million tonne per annum (MTPA) to 1.25 MTPA with an investment $20 million by 2009.

The Rs 513-crore company will also increase production of coking coal from its NRE No 1 colliery from 1 MTPA to 4 MTPA by 2012, even as its NRE Avondale colliery is expected to commence production in 2010, adding 2 MTPA to the total.

The company is acquiring four new bulk carriers on long-term time charters with an option to buy, which would be put into service progressively from 2010.

Meanwhile, Gujarat NRE has chalked out a strategy to reduce operational costs and take its business at the next level.

It is setting up a waste heat recovery power plant of 30 MW capacity based on coke batteries. The plant would be operational by the end of 2009 with an investment of $45 million.

Arun Kumar Jagatramka, vice chairman and managing director, Gujarat NRE Coke told DNA Money, “The company is setting up captive jetty at Bellikeri, Karnataka and railway siding at Dharwad, which would improve logistics and reduce cost.” The company expects to touch the Rs 1,000-crore turnover mark by the fiscal-end as coking coal prices have increased 30% since January this year.

India imports around 220 lakh tonnes of coking coal per annum. This is expected to rise to 640 lakh tonnes by 2011-12.

Globally, the coke market is controlled by China, which is the largest steel producer, coke producer, coke consumer and coke exporter. On the other hand, Australia is the largest producer of coking coal. All major steel producing countries including China, Japan, India and Brazil are dependent on Australian coking coal, which is of high quality.

Gujarat NRE has acquired stakes in Australian exploration companies Rey Resources and Zelos Resources.