Estimated coal reserves at the Wongawalli mine have skyrocketed by 320 per cent.
This number is a major improvement for the company compared to the estimates it made regarding the levels of coal at the site, located west of Dapto, in April last year.
Gujarat NRE said the new figures came after further exploration at the colliery, with continued expansions planned for later this year.
A statement to the ASX signed by the company secretary Sanjay Sharma, shows significant upgrades to its estimates of the measured coal reserve at the Wongawalli site, the indicated resource, and its total reserves at the mine.
The upgrade announced by Gujarat NRE’s indicated and measured resources increased by 120 per cent, from 45 million tonnes to 100 million tonnes.
Total coal reserves were reported at 33.4 million tonnes, a 320 per cent increase from its April estimates of 7.8 million tonnes.
The miner also reported a total resource upgrade from 258 million tonnes to 337 million tonnes – a 30 per cent increase.
"These additional reserves will ensure the longer-term potential for the mine in providing future extraction areas , and give a possible mine life in excess of 20 years at a production rate of three million tonnes a year," the statement to the ASX said.
The significant increases comes off the back of massive setbacks for mining companies in the flood affected sunshine state, with Gujarat NRE chairman Arun Jagatramka saying he expects coal prices to spike in the next few months following the floods.
"The prices of coking coal have already moved up by 10 per cent to 15 per cent and could increase further as we go through the quarter," he said.
"Coke prices have also started looking up. I expect coke prices to move up rapidly since most steel mills will not get coking coal and will try to source coke and its supplies are already very tight.
"There are not many sources of coke left in the world and I, therefore, expect coke prices to spike very sharply in the next few months."
He said his company has been unaffected by the floods which has damaged other Australian miners, and they are continuing to ship coal.
"We are shipping very regularly. In December, we shipped around 200,000 tonnes, in January we are scheduled to ship around 200,000 tonnes of coal from our mines," Jagatramka said.
"Most of the January shipment has been sold to third party customers in China, while one shipment will be coming to India for our own consumption."