New Delhi: Coal miner major Gujarat NRE Coke today said it would invest $450 million in its coal mines in Australia to take its total annual production capacity to six million tonnes in the next five years, besides creating 150 new jobs, reports PTI.
"The company has an expansion plan to ramp up the production level to 6 million tonnes per annum (MTPA) from both its mines by FY 2015. We have already invested $450 million in mine development activity and would be further investing another $450 million," Gujarat NRE Coke vice-chairman and managing director Arun Jagatramka told PTI.
"We presently are directly employing around 500 employees, which is expected to go up to 650," he said.
Gujarat NRE Coke, the country's largest independent producer of metallurgical coke - which is processed from coking coal - has two coking coal mines in Australia, with an annual production capacity of 2 million tonnes.
GNCL through its Australian subsidiary Gujarat NRE Coking Coal Limited, an ASX listed company, owns and operates two coking coal mines - NRE No1 Colliery and NRE Wongawilli colliery, in the New South Wales region.
Its Australian expansion plans include mine development, construction of access roads and purchase of services and equipment.
The mines, NRE No 1 Colliery and NRE Wongawilli Colliery, together produce about 1.3 MTPA of coking coal per year.
"The current level of production for the year ended 31 March 2010 was 1.13 MTPA and we expect to produce around 2 MTPA (operating at its full capacity) by the end of this financial year," Mr Jagatramka said.
Asked whether the company was looking to acquire more mines there, he said, "We are always on the look out for any good opportunity." The firm had last year failed in its bid to acquire Rey Resources, an Australian entity.
Also, Mr Jagatramka said that the company planned to strengthen its base in Australian oil and gas sector.
"The Gujarat NRE Mineral Resources Ltd owns licenses of two oil and gas exploration block in Australia through its step down subsidiary named Gujarat NRE Oil Ltd. We have planned to foray into oil and gas field in Australia through our associate company," Mr Jagatramka said.
What’s buzzing in these stocks right now
NTPC: The story doing the rounds is that the company has sought permission from the government to sell some of its land bank. However, the company is quite cash-rich and it is difficult to believe that it would need to raise money by selling its land. The company recently announced that for FY10 it paid a total dividend of Rs31 billion, 38% of its paid-up capital, and the highest-ever by its own standards.
Development Credit Bank: It was HDFC Bank a few weeks ago and now it's Axis Bank that is rumoured to be targeting a controlling stake in DCB. Moneylife had reported about the HDFC Bank-DCB buzz (http://www.moneylife.in/article/81/9476.html). In its June quarter, it posted a net loss of Rs29 million vs. Rs82 million q-o-q, and Rs353 million y-o-y.
Financial Technologies: There are some bonus/split rumours. The stock has taken a bad beating after SEBI rejected the plea of MCX Stock Exchange (MCX-SX) for full-fledged bourse status. Before its big fall, the stock had risen quite a bit on hopes that its tussle with SEBI could end on a positive note.
Avon Corporation: There are takeover rumours doing the rounds in this stock. This is a small-cap company with a total market-cap of just Rs330 million. Promoters hold only 14% of this company while FIIs hold 8% and the public holds 79%. FII holding in this stock has risen sharply this year. The Mumbai-based company makes weighing scales. In its June quarter its net profit was Rs52 million (Rs63 million consolidated; Rs2 million q-o-q, Rs34 million y-o-y) and its net sales were Rs220 million (Rs327 million q-o-q, Rs258 million y-o-y).
Titan Industries: Rumours are doing the round of a bumper dividend and bonus issue. Titan is trading at all-time high levels. In its June quarter, Titan earned a net profit of Rs812 million (Rs512 million q-o-q, Rs460 million y-o-y) and net sales of Rs12.5 billion (Rs13 billion q-o-q, Rs8.8 billion y-o-y). The next quarter (December) is expected to be a bumper one for this company as it will reflect festival sales (Dusserah, Diwali, Christmas). Its Q2 results are expected on 25th October.
(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security. Some of the opinions expressed in this article are the author's own and may not necessarily represent those of Moneylife).
New Delhi: Zee Entertainment Enterprises Ltd (ZEEL) today said its chief operating officer (COO) and business head of Zee TV Nitin Vaidya has put in his papers, after a 10-year association with the media conglomerate, reports PTI.
After a successful stint of over a decade, Mr Vaidya has expressed his desire to explore new vistas, ZEEL said in a statement.
Zee will not be seeking an immediate replacement for Mr Vaidya's role and his direct reports will henceforth be reporting into ZEEL MD and CEO Punit Goenka, it added.
"Zee family will always remember Nitin for his adroit understanding of viewer's mind and penetrating insight into content and programming. The entire Zee family wishes Nitin all success in his new endeavours," Mr Goenka said.
Mr Vaidya's stint in Zee has seen him lead the company's foray into regional space and later all national channels.
During his tenure, the Zee Group launched channels like Zee Marathi, Zee Talkies and Zee Bangla.
"It's been over 10 glorious years with the Zee family which I shall always cherish. Zee gave me the opportunity to broaden my horizon and explore diversified functions. I am extremely thankful to the management who have always supported and backed my decisions," Nitin Vaidya said.