Gujarat NRE (ASX: GNM) has received approval from the NSW Planning Assessment Commission for the A$62 million upgrade and expansion at its NRE Wongawilli mine west of Dapto in New South Wales.
The decision represents another milestone for the company and provides a boost to its growth strategy as Gujarat announced on October 18 that it had also recived approval to begin the A$122 million upgrade of its NRE No.1 mine at Russell Vale.
The approval allows Gujarat NRE to mine in the Wongawilli seam in the north-eastern part of the lease and also construct an underground roadway to provide access to the western portion of the lease.
With approvals in place and the recent sanctioning of a US$100 million facility with Axis Bank Limited, the company is set to develop the mine.
Arun Kumar, Gujarat NRE's executive chairman, said "it is indeed great news for both the company and its stakeholders."
Further works approved include the augmenting, upgrading and use of the existing infrastructure at the mine, the extraction of remnant coal reserves within existing mine areas, and the extraction of two million tonnes of coal a year from the Bulli and Wongawilli seams for up to five years.
Rail transportation of coal from the mine and rehabilitation of the site have also been approved.