Indian firm to buy two mines in Australia for US $1.5B

GVK Power & Infrastructure is reportedly in talks to buy two coal mines of an Australian company, Hancock Prospecting Pty.

The GV Krishna Reddy-controlled Indian company will pay about US $1.5 billion for Hancock’s Alpha Coal and Kevin’s Corner mines, with the balance to be paid in the next few years.

GVK is seeking overseas coal supplies to help fuel power plants at home after its shares fell 45 per cent in Mumbai over the past year.

The company is in talks with investors, including 3i Group Plc and Actis LLP, to help finance the acquisition.