(EnergyAsia, June 1 2012, Friday) — Australia’s Queensland state has given conditional approval to the development of a A$10 billion coal mine in the untapped Galilee Basin owned by Indian infrastructure group GVK and mining tycoon Gina Rinehart. (US$1=A$1.02).

GVK described the conditional approval as an important step towards the Alpha Coal Project receiving final environmental and mining approvals from Australian regulators which it expects in the second half of 2012.

Targeted to start up in 2015, Alpha consists of a 30-million-tonne/year mine, a 495km standard gauge railway, a terminal and two berths at Abbot Point to export at least 60 million tonnes/year of thermal coal to markets in Asia.

GVK said that at peak the mine will produce more than 30 million tonnes of export grade thermal coal a year over a 30-year mine life.
 
Alpha is expected to generate 3,600 jobs during construction and 1,800 permanent jobs across the mine, rail and port.

Queensland’s Minister for State Development, Infrastructure and Planning Jeff Seeney said the project would produce significant economic benefits for the state and nation.

“There’ll be an estimated A$11 billion boost to the economy during the mine’s three year construction phase. 80 per cent of that will be retained in Queensland,” he said.

“Once operational, Queensland’s economy should see an economic boost of A$1 billion per year from this mine alone.

“Australia can expect an A$80 billion rise in exports over the life of the mine.”

Mr Seeney said the Coordinator-General had approved the mine with strict conditions and the move was a major step towards opening up the Galilee Basin’s coal deposits.

GVK, a privately owned Indian conglomerate, said it is looking for minority equity partners into Alpha which it has described as “unique, world-class assets” to be developed as an integrated “pit to port” operation. The Indian company acquired a 79% majority interest in the project from Reinhart’s Hancock Coal last September for A$1.26 billion.

G.V.K Reddy, GVK’s chairman and managing director, said:

“We remain committed to developing our world class projects in a timely and responsible manner and ultimately bring widespread benefits to this great state.”

Vice chairman G. V. Sanjay Reddy, who is spear-heading the project, said:

“GVK’s vision is to be the premier coal supplier to the world. The environmental impact study is another milestone towards this goal and the October 2010 declaration of the rail corridor and signing the port framework agreement for T3 at Abbot Point all adds to the advanced nature of the project.”