Gujarat NRE Coke is preparing to set up a one-million-ton coke making plant near Krishnapatnam in Andhra Pradesh, reports Business Line.

Land for the purpose has been acquired at Rs 200 million and the unit is expected to become operational in two to two-and-a-half years. The plant would come up at a cost of Rs 3,500 million.

The company expects to ship one million tons of premium hard coking coal to India from its two mines in Australia.

Gujarat NRE operates two underground mines in Southern Coalfields of New South Wales. With a capital expenditure of USD 500 million, to be spread over four years, the company intends to mine over 7 million tons. About 70% of the funds would be from internal accruals and the balance debt.

The firm has three coke making units – Khambhalia and Bhachau in Gujarat and at Dharwad in Karnataka – which produce close to one million tons of met coke.

Shares of the company declined Rs 0.9, or 2.84%, to end at Rs 31. The total volume of shares traded was 896,320 at the BSE (Friday).