GVK Hancock Coal appoints Thiess as preferred Mine Operations Contractor fot Alpha Thermal Coal Project

GVK Hancock Coal has appointed Thiess as preferred mine operations contractor for its $10bn Alpha thermal coal project in the Galilee Basin.

An Early Services Agreement signed this week will see GVK Hancock working exclusively with Thiess to develop a 10-year mine plan and budget. Thiess' technical, engineering and plant expertise will be applied to develop the operational strategy and management plans, ensuring the thermal coal mine is a world-class, cost competitive operation. The team is expected to finalise the operational strategy, mine planning and management plan by the end of the year.

Speaking on the development, Dr. GVK Reddy, Founder Chairman and Managing Director, GVK said, "We are delighted to have Thiess on board to help deliver the next phase in Alpha's operational development. It is our endeavour to take innovation to another level and embed industry leading technology and best practice from the early planning stages."

GVK Vice-Chairman, Mr G V Sanjay Reddy stated, "We look forward to working closely with Thiess in responsibly promoting the development of the Alpha Thermal Coal project. We are resetting the paradigm on everything from plant and equipment to local sourcing. I can now confidently say that we have set the tone for what will be Australia's largest coal mine."

Thiess Managing Director Bruce Munro said "Thiess is excited to extend its working relationship with GVK to deliver the next phase in Alpha's operational development. The next six months are a critical time for Thiess and GVK Hancock to work together to reinvigorate Australia's position as the world leader in safe and highly productive operations."

Alpha Coal Mine is located in the Galilee Basin with the first coal to be extracted by 2016. When fully commissioned, the mine will produce 32 million tonnes of thermal coal per year.

In September 2011, GVK had acquired 79% equity stake each in Alpha Coal and Alpha West Coal Mines and 100% equity stake in Kevin's Corner Coal Mines, located in Queensland, Australia from Hancock Coal Pty. Ltd for USD 1.26 billion. These mines have reserves of about 8 billion tonne and a capacity of more than 60 million tonne per annum. When combined, these projects will create one of the largest thermal coal mining operations in the world. GVK had acquired 100% stake in a 500 km rail link and 60 million tonne per annum port as part of the 'pit-to-port' logistics solution.

Shares of GVK Power & Infrastructure Ltd was last trading in BSE at Rs.8.07, down by Rs.0.11 or 1.34%. The stock hit an intraday high of Rs.8.22 and low of Rs.8.

The total traded quantity was 9.17 lakhs compared to 2 week average of 4.91 lakhs.

Source - Equitybulls