Hancock Coal Infrastructure Pty Ltd (GVK Hancock) and QCoal have entered into a memorandum of understanding to work on coal transportation services for approximately 20 million tonnes a year.
The Australian company QCoal’s product will be transported using the infrastructure to be developed by GVK Hancock, including the Galilee Basin North – South rail line in Queensland. This GVK project was chosen as the preferred rail corridor by the Queensland Government.
The MoU outlines scope of services, pricing principles and service requirements to provide transportation services to QCoal and its joint venture parties.
GVK Hancock and QCoal are in discussions to work on mutually beneficial projects contributing to the economic development of Queensland.
The agreements for utilising GVK Hancock’s transport infrastructure will help provide third party users with commercial access to infrastructure capacity.
Acknowledging the Queensland Government’s support for the project, GVK Hancock in a statement said the project will benefit generations of Queenslanders. The company received rail accreditation in December last year and environmental clearance for the project recently.
The company expects to finalise operators to maintain and operate the infrastructure facilities and the selection of short-listed construction contractors for the infrastructure facilities.
The $10-billion Alpha Coal Project being developed by GVK Hancock involves a thermal coal mine in the Galilee Basin, a 495-km standard gauge railway line and port facilities at Abbot Point.
The first coal from Alpha Project is scheduled for 2016 with the product bound for the Asian export market.
GVK Power and Infra shares closed the day at Rs 13.74, down 2.14 per cent.