GVK Hancock’s Australian project has completed negotiations for acquiring 75% of the land required for its rail line, to be developed between coal mines in the Galilee Basin and Abbot Point Coal in Queensland.
According to a project update report, GVK said, “The process for acquiring the remaining 25% of the land will be initiated shortly. To date, our GVK Hancock project team has successfully negotiated terms sheets with landholders for around 75% of the rail corridor which outline commercially agreed terms for the acquisition and compensation of the land.”
“At this stage, GVK Hancock plans to recommence negotiations with the remaining landholders along the rail line route once it has finalised the proposed joint venture with Aurizon, Australia’s largest rail freight operator. This joint venture with Aurizon will develop the rail and port solution connecting the southern end of the Galilee Basin to export markets with the joint venture agreement currently in the process of being finalised,'' the company said in its report.
Recently, GVK group had signed a pact with Aurizon, claimed to be Australia's largest rail freight company, for selling 51% stake in its rail and port projects holding company, Hancock Coal Infrastructure (HCI), which owns GVK Hancock's rail and port projects.
GVK had in 2011 acquired a 79% stake in the Alpha Coal and Alpha West Coal Project and 100% stake in the Kevin's Corner Project, Queensland from Hancock Coal Pty Ltd. These projects hold estimated reserves of about 8 billion tonne and a capacity of more than 80 million tonne per annum. GVK also has a 100% stake in the 500-km rail line and a 60 -million-tonne-per-annum port as part of the 'pit-to-port' logistics solution, which envisages an investment of $10 billion.
The JV with Aurizon will develop the rail and port solution connecting the southern-end of the Galilee Basin to export markets with the joint venture agreement currently in the process of being finalised, it added.
“We also continue to have compensation agreements in place with all properties in the area of our Alpha mining lease and the amendments to mine planning
will be reflected in these ongoing agreements,” the report added.