GVK Coal Infrastructure has inked a non-binding term sheet with Australia-based Aurizon to develop the rail and port infrastructure for the Galilee Basin coal reserves.
GVK Coal Infrastructure has inked a non-binding term sheet with Australia-based Aurizon to develop the rail and port infrastructure for the Galilee Basin coal reserves.
Aurizon, as per the agreed terms, will acquire a 51% stake in GVK Hancock’s rail and port projects unit Hancock Coal Infrastructure for an undisclosed sum.
GVK chairman Dr. G V Krishna Reddy remarked that the agreement was one of the most significant deals in the history of coal mining in the state of Queensland.
"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," opined Dr. Reddy.
The two companies will collectively develop rail and port infrastructure to deliver export capacity of 60 mtpa of coal, representing an investment for Queensland in the order of $6bn.
Aurizon managing director and CEO Lance Hockridge added, "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."
GVK had previously acquired a 79% stake each in Alpha Coal and Alpha West Coal Mines, as well as a
100% stake in Kevin’s Corner Coal Mines from Hancock Coal for $1.26bn.