Gujarat NRE (ASX: GNM) will restart longwall mining operations at the NRE No. 1 coal mine, in New South Wales, from December this year to meet increasing demand for Australia’s hard coking coal.

The commissioning and reintroduction of longwall mining at NRE No. 1 is on track, with one of the most modern longwall systems being put into place at the mine.

Gujarat purchased the longwall equipment, which will have the capacity to shear, load and transport 3,500 tonnes of coking coal per hour, from global mining manufacturer Joy Mining Machinery.

Joy will also refurbish and upgrade the existing longwall system at Gujarat’s second mine, NRE Wongawilli, during 2013.

Production at Wongawilli is planned to increase from 179,000 tonnes in 2008-09 to 1.5 million tonnes per annum.

Production from both mines, which are considered to be viable for at least 30 years, are on target, with each mine expected to produce 3 million tonnes of coal per annum by 2015.

Gujarat NRE Chairman Arun Kumar Jagatramka said the company is aiming to be one of Australia’s largest producers or prime quality hard coking coal by 2015.