Gujarat NRE to raise $50-100 mn for Australian mines

August 11th, 2008 - 10:09 pm ICT by IANS  

Kolkata, Aug 11 (IANS) Gujarat NRE Minerals Ltd would raise $50-100 million through a mix of debt and equity to invest in its Australian mines, said a top official Monday. “To ramp up our output from the present one million tonnes to seven million tonnes, we will invest $400-450 million over the next four years,” Gujarat NRE managing director Arun Jagatramka said.

“Out of the total investment, the company would raise $50-100 million through a mix of debt and equity,” he added.

Gujarat NRE, part of Gujarat NRE Coke, is the only Indian company which has coking coal mines in Australia. The company has two mines in that country.

The company has acquired around 200 acres in Nellore district of Andhra Pradesh to set up a one million tonnes greenfield coke plant. This project would require an investment of Rs.7.5 billion.

During the first phase, the company would invest Rs.4.5 billion, Jagatramka said.

Asked about the high coke prices, he said the prices have shot up drastically in the last one year. It went up from $300 a tonne to $700 a tonne at present. He expects the prices to remain at the current level for some time.

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