To develop a rail line and a new coal terminal jointly in Australia, GVK Coal Infrastructure (Singapore) Pte Ltd (GVK Hancock) and Aurizon Holdings of Australia have reached an agreement. The two projects are to come up at the Abbot Point Port to unlock the Galilee Basin’s coal resources in Australia.
The projects include GVK Hancock’s Alpha, Alpha West and Kevin’s Corner coal projects, which the Hyderabad-based diversified GVK Group has taken up for development. Queensland-based Aurizon had announced in last March that it would acquire a 51 per cent stake in Hancock Coal Infrastructure Pty Ltd (HCI), which owns GVK Hancock's rail and port projects, and would invest in a phased manner.
The tie-up is intended to provide sufficient equity and debt funding, including through third party debt finance, for the projects to reach financial closure.