Initial information from BHP Billiton’s 2006 annual report attributes the Elouera mine with 41 million tonnes of coal reserves.

“We believe that the mine has a life of in excess of 30 years as it will provide access to our adjoining Avondale Colliery,” Gujarat chairman Arun Jagatramka said.

“Elouera provides direct access underground into Avondale and more importantly existing surface and coal handling infrastructure.”

Jagatramka said while the company will continue using longwall extraction in the short to medium term, “in the longer term, future mining operations will be dictated by the geology and should suitably sized areas be identified, longwall extraction will be considered”

He said the company was currently finalising a drilling program for the Avondale mine and were looking to expand it to include certain parts of Elouera.

Jagatramka said the Australian-listed company, a subsidiary of Indian giant Gujarat NRE Coke, hopes to bring Elouera and Avondale online to produce 1Mt of coking coal in the first year, increasing to 2Mtpa.

“The company aims to continue the development of Avondale to maximise production as soon as possible to export the high quality coking coal to India to help meet the high level of demand for this product,” the company said on its website.

Shares in Gujarat NRE Resources closed 4¢ higher yesterday at a record 35¢