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Wednesday May 16, 09:15 AM
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BHP sells coal mine to Gujarat NRE Resources for $41 mln
SYDNEY (Reuters) - Global miner BHP Billiton Ltd./Plc. said on Wednesday it had reached an agreement to sell a coking coal mine in Australia to Gujarat NRE Resources NL for A$49 million ($41 million).
BHP ceased production at the Elouera coal mine, part of its Illawarra Coal business in the eastern state of New South Wales, in June 2005, but it has been operated since then under a limited contract mining agreement with Delta Mining Company.
Gujarat NRE Resources said in a separate statement that it expected to start production of coking coal at Elouera within the current financial year.
The Elouera mine produces high quality hard coking coal used in steel production.
Gujarat NRE Resources, a unit of Gujarat NRE Coke Ltd., said in March it planned to invest A$150 million to more than quadruple capacity at a mine near Sydney.
