Hancock Coal – a joint venture between Hancock Prospecting and GVK Industries – has entered voluntary liquidation, almost a decade after Queensland courts approved its unbuilt Alpha coal mine.
Investors appointed liquidators to wind up the company on 27 October, according to the Australian Securities and Investments Commission (ASIC).
“[Hancock Coal] holds resource [approvals linked] to the Alpha Project in the Galilee Basin,” a Department of Natural Resources and Mines, Manufacturing, and Regional and Rural Development (DNRMMRR) spokesperson told Lithos on 29 October.
“[DNRMMRR] is engaging with [the company’s] appointed liquidators to clarify their intentions regarding [its] Queensland [resource approvals], and to determine the appropriate next steps,” the spokesperson said.
GVK Industries, an Indian conglomerate, has controlled and managed Hancock Coal for more than a decade, a Hancock Prospecting spokesperson told Lithos. It owns a majority stake in Hancock Coal. Lithos could not contact GVK Industries on 29 October.
Hancock Coal had planned to annually produce 30 million tonnes of thermal coal at Alpha between 2014 until 2034, according to an Environmental Impact Statement (EIS). But it never opened the mine.
The Queensland Government approved Alpha in 2013. But environmental groups appealed the Government’s decision until 2017 because of emissions concerns, according to Environmental Law Australia.
Hancock Coal’s liquidation comes just over a year after the Queensland Government allowed Indian producer Adani to defer coal royalty payments in exchange for a A$50 million Galilee Basin investment commitment.
“Queensland has the world’s best coal reserves, and [Adani’s] expansion is proof that by giving industry certainty, we can attract the right investment to create long-term jobs for mining families,” Natural Resources Minister Dale Last said on 19 August.
By Avinash Govind