The company, which has confirmed its investment plans of $500 million over the next five years, would continue to develop and install state-of-the-art machinery in the state’s southern coalfields to maximise productivity in what it sees as being a premium coking coal location.
“While other countries such as Indonesia and South Africa may offer lower operating costs, Australia has a premium coking coal,” Jagatramka said.
“The quality outweighs the cost competition because the quality is not available elsewhere.
“While coal from the southern coalfields only represents 5 per cent of the total coal production from New South Wales from the quantity perspective, from the quality perspective it is right at the top.”
Jagatramka said the company was keen to obtain good productivity out of the new longwall system and would attempt to source as much technology, equipment and services for the operations from Australia.
“Longwalls are complex and advanced pieces of equipment. Either they work very well or they don’t work at all,” he said.
“We source conveyor products and diesel equipment for the mines from Valley Longwall International and One Steel provides the roof mesh for the mines. Some technology and services for our Indian operations are also sourced from Australia.”
Longwall mining at NRE No. 1 is expected to start up in April 2011. Gujarat NRE’s other expansion plans include mine development and construction of access roads as well as purchase of services and equipment.
NRE No. 1 and NRE Wongawilli together produce about 1.3 million tonnes of coking coal a year. The expansion is expected to increase output to about 6Mtpa by 2014-15.
