Australian firm Aurizon to buy 51% stake in Hancock Coal Infra
Aurizon and GVK Coal Infrastructure (Singapore) have signed a non-binding term sheet to jointly progress the development of rail and port infrastructure to unlock Galilee Basin coal reserves including GVK Hancock's Alpha and Kevin's Corner, a statement today said.
Under the proposed framework, Aurizon, would acquire a majority (51 per cent) interest in Hancock Coal Infrastructure Pty Ltd (HCI), which owns GVK Hancock's rail and port projects, and would invest through upfront consideration at completion of the transaction and deferred consideration at financial close of each phase of the projects.
In 2011, GVK had acquired 79 per cent stake in Alpha Coal and Alpha West projects and a 100 per cent stake in the Kevin's Corner project in Queensland from Hancock Prospecting.
Terming the agreement with Aurizon as one of the most significant deals in Queensland's coal history GVK Chairman G V Krishna Reddy said 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.
"I am sure it will be a win-win relationship leveraging on each other's strengths in project development and operation," Reddy said in the statement.
GVK Vice-Chairman G V Sanjay Reddy said at full capacity, the proposed arrangement is intended
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