Diversified infrastructure company GVK Power & Infrastructure Ltd., has received environmental clearance for the Alpha Coal and rail project located in Queensland of Australia.
The company, which decided to invest in three coal mines Alpha, Alpha West and Kevin's Corner in 2010, has received the Queensland Coordinator General's report according environmental clearance.
These three mines are estimated to hold about 8 billion tonnes of thermal coal in addition to the rail and port facilities. GVK owns 79 per cent stake in the Alpha project of Hancock Coal and the rest is with Ms. Gina Rinehart, stated to be amongst richest women. GVK had invested $1.26 billion to acquire coal assets in Australia.
Alpha project is the only Galilee basin proponent with an approved environmental impact assessment.
Best quality coal
Dr G.V.K.Reddy, Chairman of GVK, in a statement said, “This approval will enable the company complete financing and secure final mining approvals for the Alpha project in second half of 2012.”
The Alpha project is estimated to hold a 30 million tonnes per annum mine. The project includes a 495-km standard gauge railway with 60 mtpa approvals and a terminal and two berths at Abbot Point catering for thermal coal for Asian markets.
Acknowledging the Queensland Government's efforts in making this happen, the company plans to fast track the completion of key construction and operations contracts.
Mr. G. V. Sanjay Reddy, Vice Chairman of GVK, said: “GVK can provide the best quality coal to supply power to developing countries.”
GVK had acquired a controlling share of Hancock Prospecting's Galilee Basin coal mines and 100 per cent of the rail and port assets.
The Alpha project is expected to create 4,000 jobs at peak. The $10-billion project will generate up to 1,800 permanent jobs for people across the mine, rail and port.
GVK shares closed at Rs 12.45, up 3.75 per cent.