GVK receives Australian state approval for Alpha Rail Project
06 Jun 2012
Diversified infrastructure company, GVK Power & Infrastructure's $10-billion Alpha Coal and Rail Project in Australia got a boost after the Queensland state government approved its proposed 495-km rail line.
The approval comes less than two weeks after the company received environmental clearance for the project from the Queensland coordinator general.
In September 2011, Hyderabad-based GVK acquired majority assets of Australia's heiress Gina Rinehart-owned Hancock Coal for $1.26 billion (Rs5,983.74 crore). (See: GVK acquires majority stake in Australia's Hancock Coal for $1.26 billion)
Under the deal, GVK acquired a 79-per cent stake in the Hancock's Alpha and Alpha West high quality thermal coal projects, located in the Galilee Basin in Queensland, with Hancock retaining the rest.
The entire stake in the Kevin's Corner Coal Project, located next to Alpha, and the entire stake of Hancock's rail and port project linking the two coal projects to the Abbot Point port and Abbot Point T3 expansion project, will be acquired by GVK, with Hancock retaining some tonnage capacity.
The thermal coal project consists of reserves of 7.9-billion tonnes of which at least 3.3 billion tonnes are extractable.
