GVK inks pact for $2 billion coal terminal project

Published: 18th October 2012 10:24 AM  |   Last Updated: 18th October 2012 10:24 AM   |  A+A-

GVK Power and Infrastructure Ltd on Wednesday signed a pact with Korea-based Samsung C&T Corporation and Australia-based Smithbridge Group Pty Ltd to set up a 60 mtpa T3 coal port terminal in North Queensland, Australia.

The proposed terminal will involve an estimated investment of $2 billion and will be part of GVK’s upcoming $10-billion Alpha Coal project in Queensland. The port is likely to be operational within 36 months after commencing construction work.

The contract was signed during the ongoing visit of Australian Prime Minister, Julia Gillard MP to India. While Samsung will provide steel and supply ship loaders, Smithbridge will undertake engineering and marine works.

“After receiving all the tier 1 approvals, this is the first major step towards finalising the construction contracts and completing the financing for the project which is well underway,” said GVK Reddy, Chairman, GVK. Just last week, GVK recieved environmental approvals for the project both at the state and the federal level.

According to the company, the other construction contracts such as mine infrastructure, wash plant and rail are expected to be announced in the next few months.

Meanwhile, GVK reiterated that the company was in the process of achieving the financial closure by third quarter of the next calendar year. “We got all our approvals last week. From this week, we are starting our financing programme and construction contracts,” said G V Sanjay Reddy, Vice-Chairman, GVK.


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