New Delhi, March 11 (IANS) GVK Coal Infrastructure (Singapore) Pte Ltd (GVK Hancock) and Aurizon of Australia have agreed to jointly develop rail and port infrastructure, GVK Power said here Monday.
This is to unlock coal reserves in Australia's Galilee Basin, including in GVK Hancock's Alpha, Kevin's Corner and Alpha West coal mines and a process to support the next phase of coal growth in the Bowen Basin.
Under the proposed deal, Aurizon would acquire a majority 51 percent interest in Hancock Coal Infrastructure (HCI), which owns GVK Hancock's rail and port projects. It would invest through an upfront payment at completion of the transaction and deferred consideration at completion of each phase of the projects.
Both companies will have equal management rights and an equal representation on the board and all key committees.
G.V.K. Reddy will be chairman of the board.
Aurizon and GVK Hancock plan to develop and manage a port and rail project with the capacity to ship 60 million tonnes per annum (mtpa) as part of a 'pit-to-port' logistics solution which envisages an investment of $10 billion.
In 2011, GVK had acquired a 79 percent stake in the Alpha Coal and Alpha West Coal Project and 100 percent stake in the Kevin's Corner Project in Queensland, Australia, from Hancock Coal Pty Ltd. These projects hold estimated reserves of about 8 billion tonnes and a capacity of more than 80 mtpa.
"This is one of the most significant deals in Queensland's coal history. The development of the rail and port infrastructure will unlock the Galilee Basin and see the development of Alpha, Kevin's Corner and Alpha West, creating one of the largest integrated coal development projects globally," said chairman G.V.K. Reddy.
"The proposed Aurizon-GVK Hancock arrangement is a significant milestone because it brings together two advanced, large-scale players in the mine-rail-port space for the Galilee," said Lance Hockridge, Aurizon managing director and CEO.