RAIL freight company Aurizon and Gina Rinehart's part-owned Queensland coal company have agreed on a rail solution to develop the Galilee Basin as part of a $6 billion plan.
The rail and port development aims to unlock the Galilee Basin coal reserves and help support the next phase of coal growth in the Bowen Basin.
Aurizon and Mrs Rinehart's joint-venture company, GVK Hancock, plan to develop and manage a port and rail project with the capacity to ship 60 million tonnes per annum (mtpa).
Under the newly agreed proposed rail solution, 300km of track will be constructed before connecting into existing Aurizon infrastructure.
This will also allow a phased development at the Abbot Point T3 terminal and reduce initial cost of infrastructure.
The joint venture partners have not released figures on the transaction but said the southern rail connection would be able to carry trains of up to 25,000 tonnes and be open to other miners.
The projects involve a new rail project and a development right for a coal terminal at Abbot Point, near the town of Bowen.
"Collectively the proposed development of the rail and port infrastructure is expected to attract an investment for Queensland in the order of $6 billion and provide over 1,300 jobs during construction and around 300 long-term jobs once operational," a joint statement said.
Aurizon shares gained five cents to $4.74.
Under the proposed framework, Aurizon will acquire a 51 per cent interest in Hancock Coal Infrastructure Pty Ltd (HCI), which owns GVK Hancock's rail and port projects.
Chairman of GVK, Dr G V Krishna Reddy, said the company had spent a considerable amount of time with the senior management of Aurizon over the past few months.
"This milestone symbolises our common vision and I look forward to progressing this historic infrastructure development with Aurizon," Mr Reddy said.
Aurizon managing director Lance Hockridge said the agreement brought the partners a step closer to providing the primary rail and port solution for the Galilee.
"We're pleased this also aligns with government objectives - getting early tonnes out of the Galilee, at lower cost," he said.
Source..Rail News
No comments:
Post a Comment