There was an article in today's Fin Review on India NRE Minerals who announced a merger with Gujarat NRE Resources (subsidiary of Gujarat NRE Coke who is a substantial shareholder of Pike River).
The move will create a new coal group with 3 mines in southern coalfields of NSW.
Pike River coal is understood to have the lowest ash and highest fluidity of any hard Coking coal in the seaborne trade which would be used as a 'sweetener' when mixed with coal mined by Gujarat NRE in Australia, thereby increasing the quality and the potential price the coal is worth. Now, to me this would seem like a positive announcement as India NRE shares have increased significantly over the past few days with the same taking place to Gujarat NRE Resources, but unfortunately the Pike River SP has decreased. I would have thought that this would have been a positive announcement for Pike as well, seeing that there will always be a market for their coal as the mine life for the NSW mines are similar in nature to the Pike River Coal Mine in NZ.
Maybe im miss reading something? Any thoughts?
PRC Price at posting:
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