Report: India’s GVK to sell Australian rail, port stakes

The company will sell minority stakes to raise funds for its $10.4 billion Queensland Alpha coal and rail project. Australia and New Zealand Banking Group has been appointed as financial advisor.

Infrastructure conglomerate GVK Power and Infrastructure is exploring options to finance its Australian coal pit-to-port project, which combines coal mining operations with the development of a 500-km rail line and 60 million tonnes per annum port, according to a report in the Economic Times.
In September last year, GVK acquired a 79 percent equity stake in Alpha Coal and Alpha West Coal Mines and 100 percent equity stake in the adjacent Kevin’s Corner Coal Mines from Hancock Coal for $1.26 billion.

It needs to invest $10 billion to mine and build rail and port facilities that can transport coal from the mines to India and other countries.

Vice-chairman G V Sanjay Reddy told the Economic Times that GVK plans “to raise $7.5 billion and the rest will come in as equity.”

The company has appointed Australia and New Zealand Banking Group as its financial advisor and started talks with rail and port companies to offer stakes in its project, according to the report.

The company plans to sell a minority of its 100% stake in a proposed multi-user rail infrastructure project and coal handling and stockpiling facility.

The 500-km rail line will connect Alpha Coal and Kevin’s Corner mines to the nearest coal port, Abbot Point in North Queensland.

GVK’s Alpha scheme is among several projects in the Galilee Basin, Australia's largest undeveloped coal reserve. Waratah Coal and India’s Adani Enterprises also own mines in the area.

GVK was unavailable for comment.