GVK to acquire Australian coal mines for $2.2bn

30 August 2011 (Last Updated August 30th, 2011 18:30)

Indian firm GVK Power & Infrastructure has made a deal with Hancock Coal to acquire two coal mines in Australia for $2.2bn. GVK will pay $1.3bn for the Alpha Coal mine and Kevin's Corner mine and $900m to develop the transportation infrastructure, which is required to move the coal to th

Indian firm GVK Power & Infrastructure has made a deal with Hancock Coal to acquire two coal mines in Australia for $2.2bn.

GVK will pay $1.3bn for the Alpha Coal mine and Kevin's Corner mine and $900m to develop the transportation infrastructure, which is required to move the coal to the port.

Both the coal mines have total coal reserves of 7.6 billion tons and are expected to produce 30Mtpa of coal over a life of 30 years.

GVK will pay the amount for the transaction through the funds received from the ICICI Bank, Standard Charted Bank and Axis Bank.

India is expected to import about 100Mt of coal in 2011, reports The Economic Times.