GVK Hancock signs deal for coal transportation
Hancock Coal Infrastructure Pty Ltd (GVK Hancock) has signed a deal with QCoal company of Australia to provide coal transportation services for its undeveloped coal projects in Australia's Queensland state.
The deal has been signed for transportation of 20 million tonnes of coal per annum, said a statement issued by Indian infrastructure major GVK here.
It is anticipated QCoal's product will be transported using the infrastructure being developed by GVK Hancock, including the Galilee Basin North-South rail line, recently announced as the preferred rail corridor by the Queensland government.
The MoU sets out the key commercial principles, including the scope of services, pricing principles and service requirements, for GVK Hancock to provide transportation services to QCoal and its joint venture parties.
GVK Hancock and QCoal have also been in detailed discussions which have identified numerous areas of co-operation set to benefit the projects being developed by both parties.
The Alpha Coal Project being developed by GVK Hancock involves a thermal coal mine in the Galilee Basin, a 495 km standard gauge railway line and port facilities at Abbot Point.
The first coal from the Alpha Project is scheduled for 2016 with the product bound for the Asian export market.
GVK Group had acquired the coal mines from Australia's Hancock Prospecting last year for about USD 1.26 billion. However, the project requires about USD 10 billion investment for development.
The Alpha Project is 79 percent owned by GVK and 21 percent by Hancock Prospecting chairman and Australia's richest person, Georgina Hope Rinehart.