The two mines – Alpha Coal and Kevin’s Corner – have combined reserves of 7.6 billion tonnes and can produce 30 million tonnes of coal per year over a life of 30 years, the Economic Times reported.
GVK will pay approximately $2.2bn for the acquisition of these mines which are owned by Hancock Prospecting.
The company will pay $1.3bn for the Alpha Coal and Kevin’s Corner mines and $900m to develop infrastructure for carrying the coal to the port.
ICICI Bank, Standard Chartered Bank and Axis Bank will fund this transaction.
