GVK’s Galilee basin coal project gets conditional nod from Oz court

The infrastructure major is developing $10-billion Alpha Coal Mine project in Australia

The project is estimated to provide direct employment to around 7,500 people across the region, Queensland State and Australia during construction, and almost 4,000 once operational, contributing over $40 billion in taxes and royalties over the life of the mines

Hyderabad: In a significant development, GVK Group’s $10-billion Alpha Coal Mine project in Australia received conditional clearance from the Land Court of Queensland "GVK Hancock welcomes the recommendations from the Land Court that the Environmental Authority clearance and Mining Lease for our Alpha coal project be granted subject to conditions. We fully understand the significant benefits our projects will bring to the region and will continue to work with the environmental regulators in relation to these recommendations," GVK said in a statement.

In 2011, GVK had acquired 79 per cent stake in the Alpha Coal and Alpha West projects and 100 per cent stake in the Kevin’s Corner project in Queensland from Hancock Prospecting Pty Ltd.

GVK’s Alpha Coal Mine is located in the Galilee Basin with the first coal expected to be extracted by 2016. When fully commissioned, the mine will produce 32 million tonnes of thermal coal per year for the Asian export market. In August 2012, the Australian government gave environmental clearance to Alpha Coal project comprising operation of coal mine and a railway line between the mine and the port at Abbot Point, near Bowen.

With the latest development, all the decks are cleared for the project to take off as the Queensland Government will have to issue GVK the mining lease for Alpha Coal project.

The Hancock Coal project is expected to bring on line a new world class high quality, low ash, low sulphur, low gas thermal coal basin with an ability to lower global emissions from coal fired power generation, the statement added.

The company is of the view that the Alpha coal project will bring benefits to the region and will continue to work with the environmental regulators in relation to these recommendations.

"In its judgement, the Land Court clearly confirmed that GVK Hancock's comprehensive environmental assessment addressed all the objections raised with no requirement for further conditions apart from groundwater," the statement said.

This recommendation to grant the mining lease and environmental authority endorses the comprehensive environmental assessments of the Galilee Basin projects, which was approved by State and Federal governments.

“During the case, objections were heard in relation to climate change, economics, surface water, groundwater, land use, public interest and greenhouse gas emissions,” GVK Group said.

The company is well aware that the development of the Galilee Basin represents one of the most significant pieces of regional and economic development the state has seen for decades, it added.

GVK Hancock’s Galilee Basin projects include the Alpha, Alpha West and Kevin’s Corner coal projects, and incorporate associated infrastructure including a rail solution connecting the Galilee Basin to a new coal terminal (T3) at the existing Abbot Point Coal Port. When combined, these projects will create one of the largest thermal coal mining operations in the world.

The projects are estimated to provide direct employment to around 7,500 people across the region, Queensland State and Australia during construction, and almost 4,000 once operational, contributing over $40 billion in taxes and royalties over the life of the mines.