GVK sells 51-per cent Hancock Coal stake to Aurizon

GVK Coal Infrastructure (Singapore) Pte Ltd (GVK Hancock) and Aurizon have teamed up to jointly develop rail and port infrastructure in Australia. The agreement would help unlock Galilee Basin coal reserves including GVK Hancock's Alpha, Kevin's Corner and Alpha West coal mines as also a process for supporting the next phase of coal growth in the Bowen Basin.

The proposed framework would see Aurizon acquire a majority (51 per cent) interest in Hancock Coal Infrastructure Pty Ltd (HCI), owner of GVK Hancock's rail and port projects. The company would also invest through upfront consideration at completion of the transaction and deferred consideration at completion of each phase of the projects.

Both companies would have equal management rights as also equal representation on the board and all key committees with GVK Reddy taking up as chairman of the board.

In 2011 GVK had acquired a 79-per cent stake in the Alpha Coal and Alpha West Coal Project and 100-per cent stake in the Kevin's Corner Project, Queensland from Hancock Coal Pty Ltd.

The reserves of the projects have been estimated at around 8 billion tonne and a capacity of over 80 million tonne per annum.

The company also holds a 100-per cent stake in the 500km rail line and a 60 MTPA capacity port as part of the 'pit-to-port' logistics at a projected investment of $10 billion.