Aurizon welcomes Queensland Government infrastructure commitment to the Galilee
Aurizon today welcomed the announcement by the Queensland Government to provide Infrastructure Enabling Investments to support rail and port infrastructure for Galilee Basin coal developments.
Aurizon is working with GVK Hancock to develop rail and port infrastructure from the Galilee Basin to serve both GVK's mines and other miners across common user infrastructure.
The Queensland Premier Campbell Newman announced today that the State Government is prepared to take a short-term, financial stake in the rail, port or other infrastructure needed to open up this region. The State has confirmed that it is open to negotiating agreements with all proposed Galilee Basin miners and infrastructure providers.
"Today Aurizon received an invitation from Deputy Premier Jeff Seeney to participate in the new government funding mechanism, a move which we welcome," Aurizon Managing Director & CEO Lance Hockridge said.
"The Queensland Government has provided a mandate for two corridors, one from north to south and one from east to west.
"Aurizon continues to work with GVK and also the State Government on its proposal for a railway that would join the existing Central Queensland coal network, enroute to expanded port facilities at Abbot Point.
"We believe a combined greenfield-brownfield railway that saves an estimated $1 billion plus in capital costs compared to a full greenfield railway is a compelling commercial and operational solution for a range of miners in this market environment."
Aurizon is progressing with GVK Hancock to acquire 51% interest in Hancock Coal, which holds the Abbot Point T3 (Port Project) and Galilee Basin (Rail Project). There are conditions precedent to this transaction that GVK needs to fulfil, prior to finalising the transaction.