Alpha West coal project

From Global Energy Monitor

The Alpha West coal project is a proposed underground mine, to be operated by GVKHancock Coal, producing 24 million tonnes per annum, in the Galilee Basin, central Queensland, Australia.[1]

Alpha Coal Project and Kevin's Corner Coal Project and Alpha West coal project would use the same rail link to Abbot Point coal terminal before the coal is exported. The three mines will also share site based infrastructure such as electric power lines, water supply, airports and roads.[2]

Location

68 km north west of Alpha, Queensland, Australia. The below, undated photograph, shows the approximate location, adjacent to the Kevin's corner proposal and the proposed site for the Alpha coal project.

Loading map...

Coal Mine Background

GVK Hancock is a joint venture that includes Hancock Prospecting, one of Australia's largest resource companies GVK, one of the largest business groups in India. The joint venture plans to develop the vast coal reserves of the Galilee Basin to provide energy in the Indian sub­continent as a mainstay to help underpin India's growing economic future.[2]

A concept study has been completed for this site.[1] If it goes ahead it could be the third coal project by GVKHancock Coal in the basin.

In August 2019 Alpha West is referred to by Renew Economy Australia as "GVK’s equally [along with GVK's other two coal proposals] stranded 24Mtpa Alpha West coal proposal." Due to the lack of a secure Indian market for the coal following India's move to become more independent in coal supply.[3]

At present, there is no mining in the Galilee Basin. The opening of Adani's Carmichael Coal Project would change this and could mean that a number of the other proposals in the area are also advanced, including the Alpha West project. The Queensland Resources Council has said the projects other than the Carmichael mine would have a "much easier run" if the rail line was already established and the environmental approvals had been cleared for Carmichael.[4]

Project Details

  • Sponsor: GVKHancock Coal
  • Parent Company: GVK Group and Hancock Prospecting
  • Location: 68 km north west of Alpha, Queensland, Australia
  • GPS Coordinates: -23.115171, 146.332751 (approximate)
  • Status: Proposed[1]
  • Production Capacity: 24 Mt/year[3]
  • Total Resource: 1.8 billion tonnes[2]
  • Minable Reserves:
  • Coal type: Thermal[1]
  • Mine Size:
  • Mine Type: underground
  • Mining Method:longwall mining[2]
  • Start Year:
  • Source of Financing:

Financing

The delay to GVK's projects in the Galilee basin has put the parent group into financial difficulty. In May 2017, GVK told stock exchanges that GVK Coal, a subsidiary, failed to achieve financial closure resulting in delay in mine development activity and in entering definitive agreements for port and rail development and agreement for the sale of coal.[5]

In 2019 GVK is still struggling financially. Mr Buckley from Institute for Energy Economics and Financial Analysis, said GVK Singapore, the dominant partner in the Kevin's Corner, Alpha and Alpha West projects, was effectively "bankrupt" with more than $US1 billion debt and no revenue or equity.

But billionaire Gina Rinehart, who is owed $US750 million by GVK, could bankroll Galilee Coal if she saw money in it.[6]

Articles and resources

References

Related SourceWatch articles