GVK Hancock Coal signed a preferred mine operations contractor with Thiess in the first week of June 2013. The contract is worth 10 billion US dollar. The contract was signed for Alpha thermal coal project in the Galilee basin in Australia.
The agreement will facilitate GVK Hancock to work only with Thiess in order to develop 10-year mine plan and budget. The plant, engineering and technical expertise of Thiess shall be used for development of the operational strategy as well as management plan of the Alpha thermal coal mine project.
The Alpha thermal coal project was declared as project of State significance by the Queensland Government. The mines of this project have a thickness of 3-8 metres, which make it suitable for high-production open-cut mining.
GVK Hancock Coal declared that the first coal will be extracted from Alpha thermal coal mine by 2016. The mine, after being completed, shall produce 32 million tonnes of coal per annum, which will be used for the export in Asia.
GVK Hancock Coal through subsidiary, acquired 79 percent stake each in Alpha West coal and Alpha Coal mines. It also acquired 100 percent equity stake in Kevin’s Corner located in Queensland. This acquisition was done in September 2011 at a price of 1.26 billion US dollar.
GVK Hancock Coal is also in the process of development of 500 km rail link as well as 60 million tonne per annum port project.