GVK Power & Infrastructure Limited, part of Hyderabad-based GVK Group, today said the financial closure for its $10-billion Alpha coal and rail project in Queensland, Australia, was expected by March 2013, as opposed to the original deadline of December 2012.
The financial closure was getting deferred due to delays in receiving necessary environmental clearances from the local authorities, said Sanjay Reddy, vice-chairman, GVK Group.
Last month, GVK had received environmental clearance for the Alpha coal mine project that included constructing a railway line to port from the Queensland province. However, objections were raised by the federal government.
Last year, GVK paid $1.26 billion to buy the coal assets and related logistics infrastructure in Australia from Hancock, through a group company GVK Coal Developers (Singapore). The Alpha project, which is expected to generate 4,000 jobs at peak, is being run by Hancock Coal, in which 79 per cent is owned by GVK and the rest by Gina Rinehart, chairman, Hancock Prospecting Pty Limited.
“The project is likely to get the environment clearance approval from the Australian federal government within a month,” Rinehart said, while expressing her interest in raising the stake from the present 21 per cent.
Rinehart, who had sold a majority stake in her Hancock Prospecting Pty’s coal projects to GVK Group last year, said she would be happy to buy back shares in the venture if it needs funds. “I have told GVK, I would love to be in the project more,” Rinehart told reporters during a visit to Hyderabad, where she meet officials of the group.
GVK would prefer to sell stakes to companies it plans to supply coal to, she said. “They would like to bring in the market. So, I just need to wait.”
