TABJ - June 16 - GVK Power and Infrastructure is set to purchase two of Australian thermal coal mines from Hancock Prospecting in a deal worth more than A$ 2.25billion, which would represent one of India's largest overseas coal mine acquisitions.

According to sources close to the deal, an initial agreement was signed earlier this month by GVK vice chairman Sanjay Reddy and Hancock chairman Gina Rinehart.

A senior GVK executive who wished to remain anonymous said: “The individuals have signed, but the companies haven't.”

A formal announcement is expected in four weeks’ time after the paperwork surrounding the deal has been completed.

Dipesh Dipu of DeloitteTouche Tohmatsu India said: “It fits well strategically for Indian power generation companies that have ambitious growth plans, as this promises a longer term supply security of good quality coal, and coal mining operations can be scaled up with time.

“The stable regulatory framework and developed financial markets for resources in Australia also make it possible to operationalise mines on schedule.”

Both coal mines — Tad's Corner and Kevin's Corner — are located in Queensland and each have a capacity of 30 million tons per annum.