Gremach Infrastructure Equipments & Projects has taken 75% controlling stake in 11 coal mine licenses in Mozambique having an aggregate 13,520 hectares in prime region of Moatize. This region falls in Karoo basin which is recognized as prime hard coking coal bearing area in Africa. There is a global shortage and crisis of hard coking coal and this will add huge value to the profitability of the company.
The company is planning to start prospecting of the area in the month of October, 2007 and will be complete by mid 2008. Expected reserves in the above mines are more than 200 million. With this acquisition, the company has entered into the list of selected club of few Indian companies like JSW, Tatas and Gujarat NRE Coke which has mines outside India.
The company’s group company Austral Coke & Projects is into manufacturing of low ash met coke and this acquisition will give raw material security which is a normal practice in Australia where Japanese and Chinese have invested for in-house captive consumption.