Hancock Coal has announced the $1.2 billion sale of large quantities of its holdings in the Central Queensland Galilee Basin area to Indian group GVK Coal.


For $1.2 billion, Indian company GVK Coal is buying 79 per cent of the basin’s interests, 100 per cent of Kevin’s Corner’s interests and rail and port infrastructure from Hancock Coal.


The announcement by Hancock ensures that almost all of the area’s coal is held by Indian and Chinese interests a full three years before mining is scheduled to start.


Of the 20.5 billion tonnes of resources expected to be produced by the Galilee Basin, 19.3 billion tonnes are already allocated to Indian or Chinese companies.


There are several Australian companies who will retain their small holdings in the Galilee Basin but the 1.2 billion tonnes left in the basin will go to Australian Bandanna Energy who is in partnership with US company AMCI.