GVK says it will look to finance Alpha coal mine when time is right

GVK Hancock said it is focused on finalising approvals for its Alpha coal project in the Galilee Basin before looking to finance the $10 billion project.

The comments come after French bank Societe Generale suspended its finance partnership with the project.

Citing the project’s lengthy delays, the bank said it no longer had involvement in a financing deal.

But GVK Hancock said it did not require the bank’s services at this point in the project timeline.

“GVK Hancock has been working with Societe Generale on a specific element of the financing arrangements for our projects, but is not currently working on that specific work package and as such does not require their services at this time,” the company said in a statement.

“The key focus for our projects at this point in time is finalising our approvals and addressinglitigious challenges to our attained approvals.

“Once we have finalised approvals we will then execute coal off-take agreements and work to finalise financing arrangements.”

The Alpha Coal Project will be a 32 Mtpa open-cut coal mine with an expected life of 30 years.

It and the other proposed mines in the Galilee region have been the target of anti-mining activists who want development in the area halted.

Green Groups were counting Societe Generale’s announcement yesterday as a win.

"This is obviously something GVK will be concerned about," Coast and Country spokesman Derec Davies said.

"I would think Societe Generale's decision would reverberate through other projects."