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GVK to offload minority stake in Australia Coal Mining Project

Australia's largest rail freight company, had said that it would pick up 51% stake in the Rail and Port project

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Press Trust of India New Delhi
Last Updated : Mar 15 2013 | 5:54 PM IST
After offloading 51% stake in Rail and Port project, the GVK group that is developing $10 billion integrated coal project in Australia is in advanced discussions with investors to sell minority stake in its coal mining project as well, a top company official said.

Earlier this week, Aurizon, Australia's largest rail freight company, had said that it would pick up 51% stake in the Rail and Port project.

Overall, the projects consist of coal mining, a railway line and a port at Abbot Point, near Bowen.

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According to GVK Vice-Chairman G V Sanjay Reddy, by the end of this year brick work of the entire project will start.

"We are already in discussions with potential investor for offloading stake in coal project. In case of mine project, we hold the majority. We will give minority stake to investors," Reddy told PTI.

"That part (finding right investor), we will do it in next three to four months. For us the big challenge is to get the right investor. Once we got the right in investor for infrastructure, mining is easier," he added.

Last year, GVK had acquired 79% stake in Alpha Coal and Alpha West projects and a 100% stake in the Kevin�s Corner project in Queensland from Hancock Prospecting Pty Ltd.

The three mines together have estimated coal reserves of about 8 billion tonne and a capacity of more than 80 million tonne per annum (mtpa) when fully operational.

GVK is also building a 495 km rail line and a 60 mtpa port as part of the pit-to-port logistics solution with a total investment outlay of $10 billion, GVK had earlier said in a press release.

Replying to a query on the mining lease, he said the permission from Queensland government is expected in a couple of months and the federal government has no role in that.

"Mining lease is expected in a couple of months. It is an automatic process after the environmental clearance is given. Once they give environmental clearance, they will have to give mining lease also," he explained.

In August, GVK received Australian Federal Government's environmental clearance for Alpha Mine and rail project.

The Alpha project has a mine life of more than 30 years, and would produce 32 million tonne a year and the first coal is expected to be produced in 2016.

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First Published: Mar 15 2013 | 5:53 PM IST

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