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Infrastructure major GVK today said that it sold majority stake of 51 per cent interest in its Australian mine, Hancock's rail and port infrastructure, to Aurizon.
Australian rail freight company, Aurizon would invest in Hancock Coal Infrastructure Ply, through upfront consideration at completion of the transaction and deferred consideration at financial close of each phase of the projects. The amount of investment was not revealed.
Hancock Coal Infrastructure is looking to develop a potential 60 million tonnes per annum port and a rail project, that would export coal from the Galilee basin, where Hancock is located. “Collectively, the proposed development of rail and port infrastructure could represent an investment for Queensland in the order of $6 billion (Rs 32,640 crore).
“At full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial close. The parties will jointly leverage the work already completed by GVK, the significant potential for ECA financing,” said Sanjay Reddy, vice-chairman of GVK. GVK bought Hancock Coal wirth its two mines in Alpha West and Kevin's Corner in 2011.
“Both the companies will have equal management rights and an equal representation on the board and all key committees,” the press release said.
One of the railways line, yet to determined, could connect Hancock's rail project with Aurizon's Central Queensland Intergrated Rail Project, which takes coal to Abbot Point. After this transaction, Aurizon would gain rights to operate and jointly manage the rail infrastructure which will exclusively provide haulage from Hancock.
“Aurizon has always believed that realising Galiliee Basin coal exports would require a consolidated rail and port solution. This solution could provide significant opportunity for new and existing Bowen Basin producers to utilise elements of infrastructure,” said Lance Hockridge, managing director of Aurizon.
GVK Power and Infrastructure's stock was up by 2.51 per cent to Rs 11.4 per share at 11:34 am.
