Saturday, 12 Nov 2011
Mining billionaire Ms Gina Rinehart has retained the right to build a controversial coal rail corridor in central Queensland, after the state government successfully quashed a Supreme Court challenge led by QCoal.
Rinehart’s Hancock Coal won approval from the Bligh government late last year to build a AUD 2.2 billion railway from its Alpha Coal Mine in the Galilee Basin, about 360 kilometres southwest of Mackay, to the Abbot Point coal port near Bowen.
The state government declared the Alpha Coal Rail Corridor Project as an infrastructure facility of significance because it would increase the state’s overall coal production by 35% and provide employment and business opportunities.
The state also stands to gain an additional AUD 430 million in royalties each year through the project, with Australia’s annual export revenue set to receive a AUD 1 billion boost.
The declaration meant land necessary for the project could be compulsorily acquired by the state, and then leased back to Hancock Coal on a long-term basis.
However, the corridor traverses land owned by around 40 different interest holders, including at least five other mining companies.
Five companies that hold tenements or mining leases in the area challenged the legality of the government’s approval in an application to the Supreme Court lead by QCoal against Queensland Infrastructure Minister Stirling Hinchliffe, who, with the state’s Coordinator General, was responsible for the significant project declaration.
They argued in court before Justice Martin Daubney in March that the proposed railway could not possibly be deemed significant because it terminated about 20 kilometres west of the port facility at Abbot Point.
The project hit a major hurdle in September last year, when the Supreme Court repealed the state government’s significant declaration on the grounds it was mishandled.
As a result, Hancock Coal was forced to realign the rail corridor completely outside the Bowen Basin in order to gain approval again, although this raised the opportunity for other coal companies to object.
(sourced Brisbanetimes)
Showing posts with label Hancock Coal. Show all posts
Showing posts with label Hancock Coal. Show all posts
Saturday, November 12, 2011
Friday, August 26, 2011
India's GVK reaches $2.2 bln Hancock mines deal-report
Fri Aug 26, 2011
* Board expected to meet within 10 days to approve deal
* GVK to pay $1.3 bln for mines, $900mln for infrastructure
MUMBAI/SYDNEY Aug 26 (Reuters) - India's GVK Power & Infra is close to finalising a deal to buy two Australian coal mines owned by Hancock Prospecting, said two sources with knowledge of the deal, which a newspaper report said has been agreed for $2.2 billion.
The GVK board, which constructs power plants and airports, will meet within 10 days to approve the deal, the Economic Times reported on Friday, citing lenders and company officials who are part of the negotiations.
GVK Power Chief Financial Officer Issac George declined to comment on the report, when reached by Reuters. Hancock was not immediately available for comment.
Hancock and GVK Power last month extended the deadline for exclusive talks until end August, sources had told Reuters. The two companies, which have been in talks since February this year, had extended the deadline twice before.
Standard Chartered , India's second-largest lender ICICI Bank and Axis Bank will fund the GVK transaction, the report said, adding Ernst & Young was advising the Indian company.
Shares in GVK were trading up 0.6 percent at 16.60 rupees at 0446 GMT in a Mumbai market that was up 0.3 percent. The GVK stock is down more than half this year compared with a 21 percent fall in the main market.
Some analysts and bankers have expressed doubts whether GVK, which the market values at about $567 million, would be able to pull off such a large acquisition.
India holds 10 percent of the world's coal reserves, but local supplies are falling short of demand as the country builds more power plants, and as domestic coal projects run into environmental and land acquisition delays.
Indian energy firms have been scouting for coal assets overseas to feed power plants at home, and have been raising funds for potential overseas acquisitions and expanding facilities.
Monday, March 28, 2011
Jindals, Reddys may jointly bid for Hancock's assets
Mon Mar28, 2011
Tags : CNPC, Sinopec Group, CNOOC,
BANGALORE/MUMBAI: The Jindals and the Reddys of the GVK Group could join hands with a third Indian company to offer a combined bid for the coal assets of Australia's Hancock Coal, which is valued at more than $2.7 billion, as a worldwide race for thermal coal spikes valuations of the mineral. The Jindals' JSW Energy has suggested to its Indian counterparts, including the Aditya Birla group , on forming a consortium similar to the strategy typically adopted by Chinese companies, to pool finances and present a formidable bid for large global assets.
"We have suggested this option and are awaiting their reaction," said a person directly involved in the negotiations. The valuations of the (Hancock) mines has become very expensive and it would be a good idea to put in a joint bid," he added.
The Aditya Birla Group, which is looking at the mines through its unlisted subsidiary Essel Mining, didn't comment on the consortium proposal. GVK Power vice- chairman Sanjay Reddy said that although his firm is keen on owning coal mines in Australia and Indonesia, he didn't elaborate on the bids. Indian state-run companies have already formed such a consortium, the International Coal Ventures Ltd that looks at bidding for coal and ore assets.
Hancock Coal is selling Kevin's Corner and Alpha Coal, both located in the Queensland province, as it expects strong valuations for the assets which are estimated to have 7.9 billion tonnes of thermal coal, according to the company's website. Thermal coal is used by power producers and although India has large deposits of the mineral, a high ash content and inadequate production by state-run major Coal India, is forcing Indian utilities to scout overseas for the coal. So far, Australia, Indonesia and countries in Africa have been common destinations for Indian power firms.
Korean firm Korya Electric and Power Company and two other Chinese bidders are also in the fray for Hancock, said the people who are aware of the negotiations with the Australian company. In the past, Chinese oil giants, including CNPC, Sinopec Group and CNOOC, have shared strengths to bid for large oil assets which are typically valued at more than $10 billion. The firms have pooled finances and technical skills and manpower to present an attractive package for the shareholders of target companies.
"While it's a convenient method to acquire large assets, varied management styles of the companies in the consortium could prove to be a handicap," said a person from a financial services company.
A delegation from Hancock is scheduled to visit India early next month for final discussions with Indian companies, said one of the persons cited earlier. The delegation is also scheduled to visit China after the India trip. Hancock does not own a captive port facility to transport coal which could have prompted several bidders to withdraw from indicative bids. The costs of building an infrastructure, like a port, would almost as that of the mine. (sourced:Economic Times)
"We have suggested this option and are awaiting their reaction," said a person directly involved in the negotiations. The valuations of the (Hancock) mines has become very expensive and it would be a good idea to put in a joint bid," he added.
The Aditya Birla Group, which is looking at the mines through its unlisted subsidiary Essel Mining, didn't comment on the consortium proposal. GVK Power vice- chairman Sanjay Reddy said that although his firm is keen on owning coal mines in Australia and Indonesia, he didn't elaborate on the bids. Indian state-run companies have already formed such a consortium, the International Coal Ventures Ltd that looks at bidding for coal and ore assets.
Hancock Coal is selling Kevin's Corner and Alpha Coal, both located in the Queensland province, as it expects strong valuations for the assets which are estimated to have 7.9 billion tonnes of thermal coal, according to the company's website. Thermal coal is used by power producers and although India has large deposits of the mineral, a high ash content and inadequate production by state-run major Coal India, is forcing Indian utilities to scout overseas for the coal. So far, Australia, Indonesia and countries in Africa have been common destinations for Indian power firms.
Korean firm Korya Electric and Power Company and two other Chinese bidders are also in the fray for Hancock, said the people who are aware of the negotiations with the Australian company. In the past, Chinese oil giants, including CNPC, Sinopec Group and CNOOC, have shared strengths to bid for large oil assets which are typically valued at more than $10 billion. The firms have pooled finances and technical skills and manpower to present an attractive package for the shareholders of target companies.
"While it's a convenient method to acquire large assets, varied management styles of the companies in the consortium could prove to be a handicap," said a person from a financial services company.
A delegation from Hancock is scheduled to visit India early next month for final discussions with Indian companies, said one of the persons cited earlier. The delegation is also scheduled to visit China after the India trip. Hancock does not own a captive port facility to transport coal which could have prompted several bidders to withdraw from indicative bids. The costs of building an infrastructure, like a port, would almost as that of the mine. (sourced:Economic Times)
Tags : CNPC, Sinopec Group, CNOOC,
Friday, March 4, 2011
GVK, JSW unit may submit fresh bids for Hancock's coal assets
4 Mar,2011
By Sameer Hashmi,ET
By Sameer Hashmi,ET
JSW Energy and GVK Power and Infrastructure will have to submit fresh bids for acquiring two coal assets put on the block by Hancock Coal as the Australian firm now wants joint bids for the assets, sources said.
Hancock Coal is selling Kevin's Corner and Alpha Coal, both located in Australia's Queensland province, as it expects good valuation for the assets.
Some Chinese and Japanese power generation companies are also among the shortlisted bidders.
The two Indian firms, however, declined to comment on the development.
"We have been looking at various assets and Hancock is one of them," GVK's vice chairman Sanjay Reddy told ET NOW. "Unfortunately we are subject to confidentiality with Hancock, so I won't be able to comment."
GVK has been scouting for coal mines for the past two years as it wants to secure fuel for its power projects, but it has so far failed to clinch a single deal due to weak financial bids.
"For us, at this point of time, CIC is the main focus," JSW Energy's joint managing director and chief executive L K Gupta said.
Sajjan Jindal-led JSW Energy is in the process of buying out UK-based power and coal mining firm CIC Energy Corporation. The deal was supposed to close on February 28, but the date for completing the acquisition was extended after CIC announced a dispute with GCL Botswana.
Hancock is expected to finalise one buyer by the end of this month. Kevin's Corner and Alpha Coal are located close to the mine that Adani Enterprises acquired last year from Linc Energy.
"The valuation could go over $4 billion considering the asset size," a source said. "There is a possibility that some players may exit the race since the valuations is so high." The two mines have an estimated 7.9 billion tonnes of thermal coal, according to the company's website.
Tags: Australia Queensland, Chinese power company, Japanese power co., bidders,
Hancock Coal is selling Kevin's Corner and Alpha Coal, both located in Australia's Queensland province, as it expects good valuation for the assets.
Some Chinese and Japanese power generation companies are also among the shortlisted bidders.
The two Indian firms, however, declined to comment on the development.
"We have been looking at various assets and Hancock is one of them," GVK's vice chairman Sanjay Reddy told ET NOW. "Unfortunately we are subject to confidentiality with Hancock, so I won't be able to comment."
GVK has been scouting for coal mines for the past two years as it wants to secure fuel for its power projects, but it has so far failed to clinch a single deal due to weak financial bids.
"For us, at this point of time, CIC is the main focus," JSW Energy's joint managing director and chief executive L K Gupta said.
Sajjan Jindal-led JSW Energy is in the process of buying out UK-based power and coal mining firm CIC Energy Corporation. The deal was supposed to close on February 28, but the date for completing the acquisition was extended after CIC announced a dispute with GCL Botswana.
Hancock is expected to finalise one buyer by the end of this month. Kevin's Corner and Alpha Coal are located close to the mine that Adani Enterprises acquired last year from Linc Energy.
"The valuation could go over $4 billion considering the asset size," a source said. "There is a possibility that some players may exit the race since the valuations is so high." The two mines have an estimated 7.9 billion tonnes of thermal coal, according to the company's website.
Tags: Australia Queensland, Chinese power company, Japanese power co., bidders,
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