GVK Energy Ltd, a subsidiary of GVK Power and Infrastructure Ltd, sees the buyout of coal and infrastructure assets of Hancock Group helping the company secure supplies for its thermal projects under way in India. It will also pave the way for entering into agreements for supply to third parties in Asia, according to the company.
Hancock’s assets, including related infrastructure, has an estimated 7.9 billion tonnes compliant with Australia’s Joint Ore Reserves Committee categorisation.
According to the company statement, this strategic initiative will enable the Hyderabad-based company meet the energy requirements to fuel some of its projects with an option to enter into long-term coal supply contracts for purchase of up to 20 million tonnes a year, useful for about 7,500 MW of power generation capacity.
Mr G.V.K. Reddy, Chairman of GVK group, in a statement said, “This will enhance shareholders value enabling the company to increase the capacity of coal power business and also help in assured supply of raw material.”
STRENGTHS
The Alpha Coal project based in Galilee Basin has estimated reserves of 3.6 billion tonnes and is expected to produce 30 million tonnes per annum. The Kevin’s Corner Project has about 4.3 billion in coal reserves with a capacity to produce about 30 mtpa with potential to begin production by next year.
The Alpha West Coal project has reserves of 1.8 billion tonnes with a potential to produce 24 mtpa. The deal comes packed with a rail project and has been declared as infrastructure of significance by Queensland State.
The company management maintained that these projects together constitute one of the largest integrated coal development assets. Most of the coal assets to be mined are intended to be delivered to utility companies in China, Japan, Korea, Taiwan and Vietnam.