Gujarat NRE (ASX: GNM) can commence longwall mining at the NRE No1 mine in New South Wales after receiving approval for the company’s subsidence management plan.
With this approval, Gujarat chairman Arun Jagatramka said the company will be able to have two hard coking coal mines under longwall operations by the end of the month.
Gujarat kicked off a A$122 million upgrade of the NRE No.1 mine in 2011, after putting one of the most modern longwall systems into place at the mine.
The new longwall equipment, which will have the capacity to shear, load and transport 3,500 tonnes of coking coal per hour, was purchased from global mining manufacturer Joy Mining Machinery.
Joy was also employed to refurbish and upgrade the existing longwall system at Gujarat’s second mine, NRE Wongawilli, during 2013.
Production at Wongawilli is planned to increase from 179,000 tonnes in 2008-09 to 1.5 million tonnes per annum.
Production from both mines, which are considered to be viable for at least 30 years, are on target, with each mine expected to produce 3 million tonnes of coal per annum by 2015.