GVK Hancock signs deal with QCOAL for coal transportation services

NEW DELHI: Hancock Coal Infrastructure Pty Ltd (GVK Hancock) and QCoal have entered into a memorandum of understanding (MoU) for the two companies to work together on coal transportation services to be provided by GVK Hancock to QCoal for approximately 20 million tonnes of coal per annum in Queensland, Australia

QCoal's product will be transported using the infrastructure being developed by GVK Hancock, including the Galilee Basin North - South rail line, recently announced as the preferred rail corridor by the Queensland State Government.

The MoU sets out the key commercial principles, including the scope of services, pricing principles and service requirements, for GVK Hancock to provide transportation services to QCoal and its joint venture parties.

GVK Hancock has also received rail accreditation in December 2011 and it is expected that announcements will be made in the near future regarding successful infrastructure operators selected to maintain and operate the infrastructure facilities and short listing of listed major construction contractors to build the infrastructure facilities.

The $10 billion Alpha Coal Project being developed by GVK Hancock involves a thermal coal mine in the Galilee Basin, a 495 km standard gauge railway line and port facilities at Abbot Point.

Pending all approvals, first coal from the Alpha Project is scheduled for 2016 with the product bound for the Asian export market.