It is reported that phase one development of the suite of Hancock Prospecting coal mines in Queensland will cost an estimated USD 10 billion to develop mines producing up to 35 million tonnes of coal a year.

Mr Sanjay Reddy chairman of the new Indian owner of the three mines of GVK said with the Indian company to retain majority control external investors were expected to put up as much as 25% to 30% of the total'.

GVK agreed to pay USD 1.26 billion last week for the three steaming coal deposits owned by Hancock 79% of Alpha and Alpha West along with 100% of Kevin's Corner together with planned rail and port capacity.

Mr Reddy said phase one is scheduled to commence production in 2014 reaching maximum output by 2017. The environmental impact statement is due to be lodged over the next six months with the mining lease to follow.

He said coal buyers along with traders and other investors were expected to take direct equity stakes in the project with little difficulty anticipated in raising the debt portion. The equity was expected to be finalized over the next six months.
He added that ''Once the equity is tied up, the debt will follow.”

Letters of intent are held with north Asian customers for an estimated 45 million tonnes of coal exports a year, with GVK expected to take a further 20 million tonnes annually for use in its power stations in India.

(Sourced from www.smh.com.au)