The GVK Group’s Kevin’s Corner Project in Queensland in Australia secured Federal Government approval under the Environment Protection and Biodiversity Conservation Act, 1999.
With State and Federal Government approvals, the GVK will be in a position to go ahead with financial closure for the project.
Late in 2011, the diversified Hyderabad-based GVK group had acquired a 100 per cent stake in the Kevin’s Corner project in Queensland from Hancock Prospecting Pty. Ltd. and a 79 per cent stake in the Alpha Coal and Alpha West Coal projects for $1.26 billion.
It envisages investment of $10 billion for setting up mines, 500 km rail link and a 60 million tonnes per annum port project, making it one of the largest integrated coal mining operations.
Will be among world's largest
These Galilee Basin projects will create one of the largest coal mining operations in the world holding total resources of 8 billion tonne and a peak capacity of around 80 million tonne per annum.
Following a rigorous and thorough assessment process by two levels of government spanning five years, the Federal Environment Minister, Greg Hunt, gave an approval decision to construct and operate the Kevin’s Corner Coal Mine 50 km north of the town of Alpha in Queensland.
The Kevin’s Corner Project is an advanced coal project and has a mine life in excess of 30 years with a capacity to produce up to 30 million tonne per annum of export quality thermal coal. Earlier, the Queensland Government had provided environmental clearance for this project in May 2013 and the Alpha Mine and Rail projects in 2012.
First coal by 2018
The Federal Environment Ministry gave an approval decision to construct and operate the Alpha Coal Mine and a railway line between the mine and the port at Abbot Point, near Bowen. Last year, GVK received Federal Government’s environment Approval of its Terminal 3 (T3) Development at the Port of Abbot Point.
Construction is expected to start on the Kevin’s Corner project in 2015 with first coal being produced in 2018.
G.V.K. Reddy, Chairman, GVK Power & Infrastructure Ltd, said: “The decision will create immense employment opportunities. This approval comes as a major milestone towards our goal of becoming the premier coal supplier. It strengthens our commitment to deliver world-class infrastructure projects in a timely and responsible manner.”
G.V. Sanjay Reddy, Vice-Chairman, said, “As coal developers, we are uniquely placed, as we possess the Federal and State Government approvals that integrate our mine, rail and port projects that will definitely help in the opening up of the Galilee Basin.”
These GVK’s Galilee Basin projects are expected to provide direct and indirect employment to around 7,000 people during construction and direct and indirect employment to around 20,000 people once operational throughout the region, state and the nation.
The project also represents a total investment of around $42 billion in tax and royalties to the Queensland and Federal governments over the life of the projects.