Jindal Steel and Power (JSPL) have swelled its holding in Gujarat NRE Coking Coal (GNCC), the Australian subsidiary of Kolkata-based Gujarat NRE Coke, by 2.67% to 12.74% with an investment of Rs 43 crore. Earlier in May, JSPL had acquired 10.07% in the Australian company for Rs 135 crore.
In May, while purchasing stake in GNCC, JSPL had also signed a long term contract to buy 5 million tonnes of coking coal over a 10-year period from GNCC. It also has the option to increase its purchase further by an additional 5 lakh tonnes in a year.
GNCC is going to issue and allot a further 30,000,000 fully paid ordinary shares to Jindal Steel and Power (Mauritius) at $0.25 a share raising A$7,500,000. It has also finalized a further off take agreement with JSPL, whereby Jindal will have the option to acquire an additional 200,000 tonnes of coal annually from the company at a benchmark linked market price.
