India's GVK to pay $1.3bn for Australian coal assets

NEW DELHI: Indian infrastructure giant GVK on Saturday said it would pay $1.3 billion for Australia's Hancock coal and infrastructure projects as it lines up energy supplies for upcoming power plants.

The purchase of three coal mines, a railway line and port projects linking the coal projects in Queensland, involves "truly world-class coal assets in both quality and scale," said GVK group chairman GVK Reddy.

GVK, long in quest of Australian coal assets, is one of a number of Indian power producers seeking to secure fuel for future projects.

The deal is aimed at giving GVK's listed flagship, GVK Power and Infrastructure, sufficient fuel supplies for its planned power plants.

"This acquisition builds a strong resource business for GVK," said Reddy in an emailed statement.

"We will now be able to increase the capacity of our coal power business with an assured in-house supply of raw material."

GVK owns and operates power, airport and other infrastructure projects in India.

These Australian projects "are together one of the largest integrated coal development projects in the world," GVK, based in the southern Indian city of Hyderabad, added.

GVK is taking a 79 percent stake in the two mines, 100 percent of a third mine along with 100 percent ownership of rail and port projects owned by the Hancock group, led by Australian businesswoman Georgina Hope Rinehart.

Copyright AFP (Agence France-Presse), 2011