New Delhi: GVK today received environmental approval by the Coordinator-General for its $4.2 billion Kevin’s Corner mine project in the Galilee Basin in western Queensland. The Kevin’s Corner Project, proposes a 30 million tonne per annum (mtpa) underground and open-cut coal mine and other associated infrastructure 65 kilometres north-west of the Alpha township. The project would rely on the railway infrastructure of the adjacent Alpha Coal Project to transport coal to the Port of Abbot Point, Bowen.
In May, 2012 GVK Hancock’s Alpha Coal Project received key environmental approval from Queensland Government for Alpha Coal and Rail Project in Queensland. In August 2012, GVK Hancock’s Alpha Coal Project gained Federal Government Approval under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC). Following a rigorous and thorough assessment process by two levels of government spanning four years, Federal Environment Minister Tony Burke 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. In October 2012, the company received Federal Government’s Approval of its Terminal 3 (T3) Development at the Port of Abbot Point, near Bowen, under the Environment Protection and Biodiversity Conservation Act 1999 (EBPC Act).
Speaking on the development, Dr. GVK Reddy, Founder Chairman and Managing Director, GVK said, “This development is yet another breakthrough towards our goal to be the premier and the most reliable coal supplier to the world. The progress in this project further strengthens our commitment to develop world-class projects in a timely and responsible manner. Moreover, the flow on benefits for the state’s economy from this project will be enormous. It means billions of dollars in capital investment and thousands of jobs for the locals.”
“We are pleased with the consent given by the Coordinator-General which culminates in the provision of a State Environmental Approval for the project. This project will follow the best practices in operations and environmental sustainability, and will contribute to the economic development of the region.” said GVK Vice-Chairman, Mr G V Sanjay Reddy.
In March this year, GVK Coal Infrastructure (Singapore) Pte Ltd (GVK Hancock) and Aurizon signed a non-binding term sheet to jointly progress the development of rail and port infrastructure to unlock Galilee Basin coal reserves including GVK Hancock’s Alpha, Kevin's
Corner and Alpha West coal mines and a process to support the next phase of coal growth in the Bowen Basin.
The Kevin’s Corner project would comprise:
- Two open-cut mine areas
- Three underground mine areas
- Coal handling and preparation facilities
- Mine waste and water facilities
- A mine infrastructure area
- A light industrial area
- An accommodation village suitable for approximately 2000 employees
- An airport with a 2.5 kilometre runway, a 17.8 kilometre rail spur and an 8 kilometre mine access road
In a major move to emphasize its focus in mining and also keeping in mind the rising demand for coal across the globe, GVK had acquired 79% equity stake each in Alpha Coal and Alpha West Coal Mines and 100% equity stake in Kevin’s Corner Coal Mines, located in Queensland, Australia from Hancock Coal Pty. Ltd for USD 1.26 billion. These mines have reserves of about 8 billion tonne and a capacity of more than 60 million tonne per annum. When combined, these projects will create one of the largest thermal coal mining operations in the world. GVK had acquired 100% stake in a 500 km rail link and 60 million tonne per annum port as part of the ‘pit-to-port’ logistics solution. The first coal from the Alpha Project is scheduled for 2016 with the product bound for the Asian export market.