GVK in talks to buy Hancock mines in Australia: Report

GVK Power and Infrastructure is in exclusive talks to buy two Australian coal mines owned by Hancock Prospecting in a deal worth A$8 billion (USD 8.4 billion), an Australian newspaper reported on Thursday.

GVK and Hancock last week signed an agreement to negotiate exclusively until mid-May for the purchase of the mines, according to an unsourced report in The Australian newspaper. GVK is raising A$8 billion for the deal which includes the Alpha Coal and Kevin's Corner mines but also the associated infrastructure involved with transporting coal from the inland mines to the coast and onward to India, the report said. GVK, which has been scouting for coal mines for the past two years to fuel its power plants, had offered $2.25 billion for Hancock's Kevin Corner mine in Queensland state, sources told Reuters in February. GVK Power last year bid to acquire Australia's Griffin Coal, which was later acquired by Indian rival Lanco Infratech. Indian firms are eyeing coal assets overseas to supply power plants in India, looking to benefit from the energy-hungry nation's aim to halve its nearly 14% peak-hour power deficit within two years. GVK and Hancock could not immediately be reached for comment. (USD 1 = 0.958 Australian Dollars)