Reuters reported that India's GVK Power & Infrastructure will pay USD 1.26 billion for a majority stake in three Australian coal mines and a port and rail project owned by Hancock Group to secure long term coal supplies for the Indian group's power projects.
The Indian infrastructure group will acquire a 79% stake in the Alpha and Alpha West coal mines in the Galilee Basin and will buy Kevin's Corner coal mine and the rail and port project connecting the coal mines outright.

GVK in a statement said that "At full production the three coal projects are together expected to supply about 84 million tons per annum to the global sea-borne coal market adding most of the coal from the projects was meant for Asian markets.”

The deal ends months of talks, which began in February and have been extended through the year.

It said that GVK will pay USD 500 million initially to Hancock, USD 200 million after one year, and the remainder on financial close of the project, which is expected to be 2012 adding the deal would be funded by bank loans.

It added that the first phase of production, scheduled to start in 2014, is expected bring in more than 30 million tonnes per year of thermal coal.

(Sourced from Reuters)