GVK Hancock and Australia-based Aurizon have reached a milestone in their proposed transaction for the joint development of a rail line and a new coal terminal at the existing Abbot Point Port to unlock the Galilee Basin?s coal resources. It will provide sufficient equity and debt funding for the projects to reach financial closure, GVK said.

The development would help unlock the Galilee Basin’s coal resources, including GVK Hancock’s Alpha, Alpha West and Kevin’s Corner coal projects. As announced by the parties in March, Aurizon would acquire a 51% majority interest in Hancock Coal Infrastructure (HCL), 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 closure.

The proposed rail solution means that in the initial stage, only 300 km of the 500 km of new corridor and track under the original GVK Hancock proposal will be constructed before connecting to the existing Aurizon infrastructure.