GVK acquires coal, infrastructure projects in Australia

September 17th, 2011 - 12:17 am ICT by IANS  

Hyderabad, Sep 16 (IANS) GVK Group, a leading infrastructure developer, Friday announced that it has acquired Hancock coal and infrastructure projects in Australia, one of the largest integrated coal development projects in the world, for $1.26 billion.

The group, in a statement issued Friday, announced that it has entered into acquisition agreements with Hancock Prospecting Pty Ltd and certain of its affiliated entities.

GVK has acquired a shareholding up to 79 percent in the Alpha and Alpha West Coal Projects, located in the Galilee Basin in Queensland. It also acquired 100 percent shareholding in the Kevin’s Corner Coal Project and also 100 percent shareholding in the rail and port projects.

The consideration for the acquisition is $ 1.26 billion to be paid in a phased manner.

The infrastructure project involves the development, ownership and operation of an integrated infrastructure development consisting of a 495 km rail line and a 60 million tonnes per annum port at Abbot Point.

At full production the three coal projects are together expected to supply about 84 million tonnes per annum to the global sea-borne coal market. The first phase of production, expected to start in 2014, envisages a total production of over 30 million tonnes per annum of high quality thermal coal, said the statement.

GVK plans to invest $10 billion in the first phase for the development of coal, rail line and port projects.

GVK Coal Developers (Singapore) Pte Limited (GVKCDPL), a step down subsidiary of GVK Natural Resources Pte Limited (GVKNRPL), in joint venture with GVK Power and Infrastructure Limited (GVKPIL) has entered into acquisition agreements.

GVKPIL will enter into a long-term coal supply contract for up to 20 million tonnes per annum for its projects in India.

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