Hancock Mining coal and infrastructure managing director Paul Mulder told delegates at the 5th annual Mines and Money conference in Hong Kong that the company’s massive Alpha Coal, Alpha West and Kevin’s Corner coal projects in the Galilee Basin and 100% of the infrastructure projects would rank as one of the largest thermal coal operations in the world.

Indian conglomerate GVK acquired a 79% interest in each of the Alpha and Alpha West projects and 100% interest in Kevin’s Corner and the Queensland infrastructure projects in 2011.

“World thermal demand will more than triple in volume, mainly fuelled by the insatiable demand of China and India,” Mulder said.

“Seaborne coal demand is expected to grow at 5.5 per cent [compound annual growth rate] over the next 20 years, reaching 2.1 billion tonnes by 2030.

“This represents an increase of 1.4 billion tonnes over 2011’s expected 728 million tonnes – or effectively two Alpha projects per annum.

“Growth is primarily concentrated in the Pacific Basin, with seaborne coal import demand in the Asia-Pacific region expected to grow at 6.3 per cent CAGR while the Atlantic basin will grow at 1.8 per cent CAGR.”

India is currently the third-largest consumer of thermal coal globally, consuming an estimated 560Mt of thermal coal in 2010.

However, thermal imports are expected to grow significantly over the next 20 years, from 90Mt in 2011 to 266Mt in 2030, a CAGR of 5.5% to become the second-largest thermal coal importer in the world.

Mulder said the Queensland projects were targeted to become the first thermal coal mines to start production in the Galilee Basin and would rank as one of the largest thermal coal operations in the world.

“It represents the next generation of independent thermal coal supply producing up to 32 million tonnes per annum export grade thermal coal and operating the first fully integrated Pilbara-style standard gauge, heavy haul railway in Queensland,” he said.

“It will be designed to replicate the efficiencies of the Western Australian iron ore industry with a 495 kilometre standard gauge, stand-alone rail link from Galilee Basin to Abbot Point able to transport 25,000 tonnes per haul.”

Mulder told delegates the company would have the ability to store up to 70Mtpa subject to more efficient use of stockpile area and berth configuration at the port.

“We have 1.82 billion tonnes resource, 1.1 billion tonnes reserves, 60 million tonnes per annum capacity with an open cut mine life of 30 years, first coal by 2015 and ramp-up from 2015 to 2019,” he said.

“We have open cut and underground mining with a 30-year plus mine life for underground mining.”

Mulder said GVK had chosen Australia for coal investment because it was a low sovereign risk jurisdiction, known for reliable and high-grade thermal coal.

The company plans to spend $A10 billion to develop the company’s Queensland assets.

The GVK Group includes GVK Power and Infrastructure and is a listed entity with assets in energy, airports and transportation, employing more than 8000 people.

Mulder said GVK was seeking to expand its resource and infrastructure portfolio to include Australia, particularly Queensland with its Galilee Basin investment being its seed assets.

“India’s growing economy is driving increased demand and consumption of resources, in particular energy,” he said.

“India’s energy mix relies on 55 per cent being supplied by coal with CAGR forecast to be 5.5 per cent which needs to be met in part by imports – India imported 90 million tonnes in 2011 and the forecast is for an increase to 266 million tonnes by 2030.

“We have a fully subscribed order book from 17 different companies in eight countries.”