Coal news and updates

GVK Hancock on Monday said it has reached an accord with Australia-based Aurizon to jointly develop a rail line and coal terminal at Abbot Point Port to transport coal from its mines in Galilee Basin. 

 

"The proposed arrangement is intended to provide sufficient equity and debt funding (including through third party debt finance) for the projects to reach financial close," GVK Hancock said in a statement. 

 

GVK Hancock had in March agreed to sell 51 per cent stake in Hancock Coal Infrastructure Pty Ltd, which owns GVK Hancock's rail and port projects, for an undisclosed amount. 

 

The development would help unlock the Galilee Basin's coal resources, including GVK Hancock's Alpha, Alpha West and Kevin's Corner coal projects. 

 

"The proposed rail solution means that for an initial stage, only 300 km of the 500 km of new corridor and track under the original GVK Hancock proposal will be constructed before connecting into existing Aurizon infrastructure," the statement added. 

 

This would also allow a phased development at the Abbot Point T3 terminal to match volumes and ramp-up, thereby materially reducing the initial cost of infrastructure, it added. 

 

GVK said under the proposal, the southern rail connection would be built to narrow-gauge specification to carry trains of up to 25,000 tonnes, with the option to consider an expansion to a full greenfield line, if increased tonnages later justify the additional investment. 

 

Source: PTI