Gujarat NRE Coking Coal (GNCCL), the Australian subsidiary of India-based Gujarat NRE, has announced that it has finalized a further offtake agreement with India's Jindal Steel & Power Limited (Jindal) according to which Jindal will have the option to acquire an additional 200,000 mt of run of mine coal annually from the company at a benchmark-linked market price.
As part of the agreement, GNCCL will issue and allot a further 30,000,000 fully paid ordinary shares to Jindal's subsidiary Jindal Steel & Power (Mauritius) Limited raising $7,500,000. GNCLL will use the placement funds for the expansion of the company's two mines to planned output levels of over 6 million mt per year.