Gujarat NRE consolidates its coal operations with completion of Australian Mergers

Gujarat NRE Coke Ltd has informed that the Board of Directors of India NRE Minerals Ltd (ASX Code INR), an Australian subsidiary of the Company have confirmed that offers made by India NRE Minerals Ltd to acquire all the fully paid ordinary shares and Options of Gujarat NRE Resources NL (ASX Code GUJ) pursuant to its bidder's statement dated October 10, 2007 have closed. The process has been conducted in full compliance of the laws and regulations of the Australian Stock Exchange (ASX) where both the companies are listed. This acquisition followed India NRE Minerals Ltd acquiring a relevant interest in approximately 96.51 percent of the shares and 94.02 percent options of Gujarat NRE Resources NL. This was subsequently followed up by India NRE initiating a process of compulsorily acquiring the outstanding shares and options for which, it did not receive any acceptance.

The merger, considering the nature of the two Company's businesses, will accord substantial synergic benefits to the merged entity.

The Company is India's largest independent met coke producer and is the only listed entity in the domain and the only Indian Company to own and operate coal mines in Australia. Integrated, from mine to market, the Company is today operating in a market that is characterised by surging demands propelled by the ever hungry steel industry obsessed with new capacity build up and shrinking supplies resulting from China moving towards a regulated, license led export regime.