Gujarat gets $3000 wrist slap

GUJARAT NRE Coking Coal, which last month raised $66 million in a placement, has been fined $3000 by the New South Wales Department of Planning for failing to comply with the conditions of approval at its NRE No 1 and Wongawilli collieries.
Gujarat gets $3000 wrist slap Gujarat gets $3000 wrist slap Gujarat gets $3000 wrist slap Gujarat gets $3000 wrist slap Gujarat gets $3000 wrist slap

Image courtesy of Gujarat NRE Minerals.

Lou Caruana

Two penalty notices were issued to the NRE Wongawilli coal mine for failing to prepare and submit a noise audit for the Director-General’s approval and for failing to commission and pay the full cost of an independent environmental audit by the due date of June 2013.

An additional penalty notice was issued to NRE No. 1 Coal Mine for failing to assess and submit options for improved noise mitigation measures for the Director-General’s consideration by the due date of June 2013.

Letters were also sent to the two mines requiring a number of actions to comply with their approvals.

In July the Clean Energy Regulator announced that Gujarat had to pay $8.4 million for not acquitting the liability for a single carbon unit to the federal regulator by the June 17 deadline.

The company, which has some of the most gassy mines in Australia, has generated thousands of tonnes of greenhouse gases.

Gujarat incurred a shortfall charge of $7,020,520, equivalent to 234, 800 carbon units.

Gujarat NRE Wonga Pty Ltd had incurred a shortfall charge of $1,356,862, equivalent to 45,380 carbon units, a spokeswoman for the Clean Energy Regulator told ILN.

The company is financially able to deal with its fines after finalising the introduction of about $66 million in capital to the company through a placement at 20 cents per share to Jindal Steel & Power Group last month.

The financing will help the company meet its aim of producing about 6 million tonnes per annum from its two hard coking coal mines.

“The financing is a major achievement given the equity and coal market conditions and is a positive step to progress the company to meet its stated objectives,” executive chairman Arun Kumar Jagatramka said.

“The introduction of this capital is important to ensure that the company is able to execute on its plans in a difficult market for coal companies and also weak equity capital market.

“Jindal has been a strong supporter of the company and its quality assets, both as a shareholder and purchaser of the product, and this investment further extends their commitment to the company.”

As part of the placement, Jindal will receive 328.5 million shares as well as about 328.5 million unlisted transferable options exercisable for nil consideration within a period of five years from the date of issue of the option.