GVK Group has bought a majority stake in the Hancock Group’s coal project in Queensland, Australia, for $1.26 billion, The Wall Street Journal reports. The company has bought a 79 percent stake in the two Alpha mines, 100 percent of the Kevin’s Corner mine as well as full ownership of ongoing rail and port projects connecting the Hancock coal projects.
The company will initially pay $500 million and the rest in phases. It will pay $200 million one year after the deal closes and $560 million on the financial close of the coal project, likely to be in 2012. The first phase of production is expected to commence in 2014.