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Gujarat began extracting coal from its Wongawilli mine in February developing the first panel for the longwall.
Gujarat technical services head Chris Harvey said the mine will ramp up to 2.5 million tonnes per annum by 2010-11. Gujarat plans to spend $A65 million over the next two years bringing the mine to full production and doubling its workforce to 200.
The mine, which was sold to Gujarat by BHP Billiton in December last year, has enjoyed a quick restart with Gujarat using one ABM20 continuous miner and two shuttle cars for the development work.
Wongawilli also serves the purpose of giving Gujarat access to its Avondale leases, which will eventually form part of the Wongawilli operation.
The mine, located near West Dapto in New South Wales, made its first shipment of 20,000 tonnes from Port Kembla this week. The shipment joined 52,000t from the company's other NSW operation – NRE 1 Colliery at Russell Vale.
The shipment is run-of-mine coal which will be washed at Gujarat's washery in India and prepared for the steel market at one of the company's three metallurgical coke plants.
Waste heat recovery plants are being set up in all the three Indian plants to generate electricity, improve profitability and earn carbon credits.
Gujarat is also in the process of acquiring six new bulk carriers on long-term charters with an option to buy and put in service progressively.
