IIA:    Why did you decide to invest in Australia?

AJ: In India, the parent company Gujarat NRE Coke Ltd is India's largest independent producer of metallurgical coke. Met Coke used in blast furnaces for steel production is made from Coking Coal. India does not have enough resource of coking coal. We envisaged the growing demand as well as India's potential to become a major steel producing hub long back and also assessed the critical shortage of coking coal that the country would be facing. Almost 80% of India's coking coal need is imported from Australia as of today. Australia has large resource of prime quality hard coking coal. Hence we invested in coking coal mines in Australia. We are presently investing to increase our production of coking coal from our Australian mines to reach to around 6 MTPA production in next 4-5 years to become one of leading coking coal producers in Australia.  

IIA:    What are the key factors of selecting Australia for investment?

AJ: The first and foremost factor is the rich resource of prime quality hard coking coal availability in Australia. The quality of coking coal produced in our mines is second to none in the world. The other factors that influenced our decision is that Australia offers a stable political & economic climate for doing business. The infrastructure is well developed and the country is open for foreign investment. The ease of doing business and transparency in business transactions are other criterion which were critical in our decision of investing in Australia.

IIA:    When did you start operations in Australia and what is the turnover of the company now and how many people do you employ in Australia?

AJ: We bought our first mine in 2004 and named it NRE No1. We bought the second mine in 2007 & it was renamed as NRE Wongawilli Colliery. Our turnover for HY ended in Sep'10 is $157.4 million and we are expecting around $300 million for current financial year. And we employ more than 500 people in Australia.

IIA:    What are the major challenges in Australian market for your company? How did you manage these challenges?

AJ: The major challenge that we faced was turning round the mines which were under care & maintenance into ones which are operational & functioning. We managed to tide over the challenges by keeping a clear focus on the long term targets & not getting swayed by short term gains.

IIA:    What are your long term plans in Australia?

AJ: We are committed to become one of the largest coking coal producers of the country. We are investing in development as well refurbishment of the existing infrastructure at our mines. We have already invested AUD 450 million dollars and are going to further invest AUD 450 million dollars for development of the mines and increase production. In the long term we plan to evolve into a leading resource player in the country. We are also very committed to our engagement with the community where we operate. From supporting sports and community program, to our commitment to the charitable causes and our concern for the environment, Gujarat NRE is a socially responsible corporate citizen with a long term vision to be a part of the country's growth story. We resemble the growing India - Australia relationship and the many commonalities the two great countries share.

IIA:    What kind of services or support is missing for international investors in Australia?

AJ: The Government should aim at improving the skills migration visa system so that businesses should have adequate resource base to draw from their requirements.

IIA:    What do you think Australia should improve to get more investment from overseas?

AJ: I feel that the Government should re look at the Foreign Investment Review process from time to time to ensure that they are not an impediment to the growth of the businesses.

IIA:    What is your advice for international investors?

AJ: My advice would be that Australia is an excellent place to do business, but one should be committed to be a long term player in the country. One need to have a vision for growth in the country and always involve the community in which he operates in the growth process.

IIA: In your opinion, how Invest in Australia could serve better to international investors through magazine, online and events?

AJ: This is good initiative and such activities are very useful for the potential investors by providing necessary information and sharing best practices for them to prepare as the plan to invest in Australia - the land of opportunities.

IIA - Invest in Australia

AJ - Arun Jagatramka (Managing Director Gujarat NRE)