Gujarat NRE Coke completed acquisition

Thebullishtrends: Gujarat NRE Coke share price is trading at Rs.118.90p(+5.17%). Gujarat NRE Resources NL (Gujarat) the Australian flagship of the Gujarat NRE Coke group, announced that it has completed the acquisition of the Elouera mine (Elouera), from BHP Billiton, which was a part of the Illawarra Coal Business located in New South Wales, Australia. Completion of the sale follows the transfer of the coal lease and associated licenses, and includes the mine, associated land holdings and the responsibility for rehabilitation and closure of the mine once operations are complete.

The acquisition of the Elouera Mine will accord the Gujarat NRE group ready infrastructure, including mining equipment and railway access to Port Kembla. According to current plans, Gujarat intends to commence mining from February 2008, with development works commencing for the first of three (3) longwall Blocks with immediate effect.

This viewed in the backdrop of a global surge in the demand for coal, the acquisition of the mine is expected to reap a windfall for the group. It will be pertinent to note here that the Company is India's largest independent producer of Metallurgical Coke which is currently witnessing a tremendous upswing. As a critical component for steel making, its demand is surging by the day, while the supply side is witnessing a squeeze.