GVK, Australia’s Aurizon in stake sale, development deal

First Published: Mon, Mar 11 2013. 11 54 AM IST

 Aurizon will pay a portion of the total sum at completion of the transaction and deferred payments at the financial close of each phase of the projects, the companies said without divulging the value of the acquisition.

Mumbai: GVK Coal Infrastructure (Singapore) Pte Ltd, or GVK Hancock, has agreed to sell a 51% stake in its rail and port projects in Australia to Queensland-based Aurizon Holdings Ltd for an undisclosed sum.

The GVK group company and Aurizon have signed a non-binding term sheet to jointly develop the rail and port projects to unlock the Galilee Basin coal reserves, the companies said in a statement on Monday.

Under the proposed framework, Aurizon will buy a majority stake in Hancock Coal Pty Ltd that owns GVK Hancock’s rail and port projects.

Aurizon will pay a portion of the total sum at completion of the transaction and deferred payments at the financial close of each phase of the projects, the companies said without divulging the value of the acquisition.

India’s GVK group invested in the Alpha, Alpha West and Kevin’s Corner mines in Queensland that have total resources of 8 billion tonnes of thermal coal, in addition to the rail and port facilities.

Development of the port and rail projects, expected to deliver export capacity of 60 million tonnes per annum, will underpin the opening of reserves in the Galilee Basin and continued growth of the Bowen Basin.

Aurizon and GVK Hancock will jointly manage the projects, which collectively could represent an investment of $6 billion for Queensland, the companies said in their statement.

 

IFAT PERWEEN