Coal news and updates

The new Chairman of Wollongong Coal Limited, formerly Gujarat NRE Coking Coal, says he was surprised when he saw the full extent of company's financial woes.

 

Shareholders in Gujarat NRE Coking Coal voted to change the company's name to Wollongong Coal at the AGM on held on Tuesday February 25.

 

The company's Chairman Jasbir Singh says the new name better reflects the business and marks Jindal Steel and Power's takeover of the company.

 

Mr Singh joined the board towards the end of last year and says it was only then that he saw the full extent of Gujarat's financial troubles.

 

"I will say that it was a little bit surprising," he said.

 

He says it was a difficult decision for Jindal to follow through with the investment but it's an important strategic move for the steelmaker.

 

Wollongong Coal is still chasing $60 million from Gujarat NRE Coke in India.

 

Jasbir Singh says there are now payment plans in place for most of the company's creditors some of whom are still owed millions of dollars.

 

Mr Singh says the future of the company also rests on expanding the Russell Vale operation which has reached the end of production under current approvals.

 

"It is very critical for the sustainability of the company," he said.

 

An application to expand is currently before the NSW Government.

 

Source: http://www.abc.net.au/