Gujarat more than doubles turnover

GUJARAT NRE Coking Coal is on track for more growth after generating a net profit of $A29.4 million for the six months to the end of September, compared to a net loss of $6.1 million for the corresponding period of 2009.

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Revenue from its two mines near Wollongong was $157.4 million for the six months to the end of September up 133% year-on-year.

“We are extremely satisfied with the result and this only speaks of our commitment towards future development of these mines, our capability of excellent project and safety management in achieving the desired result and the hard work put in by all in the company,” Gujarat chairman Arun Kumar Jagatramka said.

“I would like to congratulate the entire staff of Gujarat NRE for this impressive show and would urge them to carry on this good work.”

Gujarat almost doubled production year-on-year to 847,000 tonnes in the September quarter and the company is aiming for 6 million tonnes per annum by 2014-15.

With a Joy Mining Machinery longwall system due to arrive at NRE No. 1 in 2011, Gujarat will also upgrade its existing longwall gear at the NRE Wongawilli colliery in 2013.

“The price of coking coal has been on the rise and has doubled over last year. With the increase in production and the higher price, the margin increases are manifold and the company is poised for an excellent growth trajectory,” Jagatramka said.

“The impressive half-yearly results can be attributed to a doubling in production at double the last year’s price.”

The coal is exported to Indian parent company Gujarat NRE Coke, but “a few” shipments have also been made to China and elsewhere, the producer said.

Gujarat shares are down half a cent to 59.5c this morning.

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