Hancock Coal and rail freight company Aurizon inked an agreement for the joint development of new rail and port facilities in Galilee Basin. The project is estimated to cost $6 million.
With the port and rail facilities, the venture is expected to unlock the Galilee Basin coal reserves by providing the capacity to ship 60 million tonnes of coal yearly.
The two will build a Greenfield rail system and a coal terminal at Abbot Point. The agreement will have Aurizon acquire a 51 per cent stake in Hancock Coal Infrastructure which owns the GVK Hancock rail and port projects.
Besides unlocking the Galilee Basin coal reserves, the infrastructure will also benefit GVK Hancock's Alpha, Kevin's Corner and Alpha West's coal mines.
The rail project will travel along the north-south rail corridor ahead which was selected ahead of other proposals by other miners in the region by the Queensland government in June 2012. The proposed 500-kilometre rail link will connect Galilee Basin and Abbot Point.
The deal, however, runs counter to the plan of another billionaire and mining magnate, Clive Palmer, who wants to build his own rail and port facilities to move coal from his Waratah Coal project, also in the Galilee Basin, as well as a mega resort and a replica of the Titanic.
GVK Chairman Krishna Reddy said the rail link venture is one of the most significant deals in Queensland's coal history.
To contact the editor, e-mail:
Most Popular Slideshows
- Australia Bids Adieu to Adam Spencer's Mornings on ABC's "702 Breakfast" Show [PHOTOS]
- Top 10 Hottest Celebrities with Shocking Weight Loss (And Find Out Their Secrets!) [PHOTOS]
- SEE PHOTOS! Eva Longoria Wears No Panties at Cannes 2013, Revealed in Embarrassing Wardrobe Malfunction [SLIDESHOW]
- Demi Lovato Snapped Getting Flirty with The X-Factor Boss, Simon Cowell? [PHOTOS]