Bloomberg reported that ATEC Rail Group Ltd is in talks with India GVK Group and Adani Enterprises Ltd. to take a stake in a proposed rail link in Australia Galilee Basin where about USD 32 billion of coal projects are being developed.

Mr John Balassis MD of the Sydney-based rail developer and manager said the closely held company backed by Houston based The Energy & Minerals Group is also holding rail project equity stake discussions with billionaire Clive Palmer’s China-backed Waratah Coal Pty.

He said “What we’re talking to miners confidentially about is if there is a role for us to play and try and bring about some harmony between the three miners. We’re happy to become an equity investor and take some of the risk to deliver the project.”

GVK, controlled by Indian billionaire Mr GV Krishna Reddy, Adani, India biggest coal importer and Waratah are among global groups planning projects in the basin to meet demand for coal from Asia. The three are each pursuing their own rail projects to start shipping from 2015, while Queensland state government has said it favors a single corridor to the coast.

Mr Jason Economidis director of growth projects for Vale SA’s Australian unit said if all the companies in the Galilee built their own rail, it would cost each north of USD 4 billion.

Mr Michael Vaughan of FTI Consulting a Sydney-based outside spokesman for GVK said “GVK does not comment on specific negotiations, but can confirm that it is considering bringing new equity investors into its integrated Galilee Basin coal project.”

(Sourced from Bloomberg)