Alpha

GVK Hancock has been granted Federal Government approval to push ahead with its Abbot Point dredging project in Queensland. The approval seals the Environmental Impact Statement (EIS) and gives the green light for the company, that comprises Indian conglomerate, GVK Coal Infrastructure and Hancock Prospecting of Western Australia, to continue with its plans to form a joint venture arrangement with Aurizon to develop the Galilee Basin coal reserve that includes GVK Hancocks, Alpha, Alpha West and Kevins Corner coal mines.

Alpha to Have a 30 Year Life of Mine

GVK Hancock's Alpha thermal coal project alone contains a compliant coal resource of 1.8 billion tonnes with a further 1.2 billion tonnes in reserve. The quantity of coal is sufficient to have the mine operate as an open cut mine able to produce 32 million tonnes of high grade thermal coal a year for the next 30 years.

Alpha West to be an Underground Operation

The company's Alpha West coal deposit located to the west of the Alpha deposit has been estimated to contain a further 1.8 billion tonnes of thermal coal. Its depth makes it suitable for development as an underground longwall mining operation.

Kevins Corner Mine to Contribute a Further 473 Million Tonnes

The Kevin's Corner thermal coal deposit which is also located in the Galilee Basin is planned to be developed as both an open cut and underground mining operation to allow access to its 473 million tonne coal reserve.

Project to Include Rail and Port Development

To enable the company to transport its coal production to the coast for export to India and Asia, it is planned to construct a new coal terminal at Abbot Point near Bowen. The coal is to be railed to the Abbot Point port by means of railway infrastructure that will connect to the three coal mining operations. Coal handling terminal three at Abbot Point will be constructed to enable it to throughput 60 million tonnes of coal annually.The terminal will consist of wharf and jetty facilities along with a fast in-loading and out-loading capability. The facility will also be able to stockpile up to two million tonnes of coal as extra capacity.

Thiess Awarded Alpha Mine Contract

Contracting company Thiess has been appointed to operate the Alpha coal mining project. GVK Hancock will also work closely with Thiess in the development of a 10 year plan to develop the operation when the joint partnership agreement has been finalised with Aurizon. It is expected that Aurizon will acquire a 51 percent interest in Hancock Coal Infrastructure Pty Ltd, the company that currently owns GVK Hancock's port and railway projects. Aurizon is the largest rail freight operator in Australia. The company owns and manages one of the largest coal railway networks in the world that links over 50 mining operations with three Queensland ports.

First Coal Production Expected in 2018

The Alpha, Alpha West, Kevins Corner, mining, rail and port development project in Queensland has been subjected to many delays since the initial deal was completed in 2011. It was originally penciled in to begin production in 2014. It is now not expected to be producing coal on a commercial basis before 2018.