As one of the largest export coal terminals in the world, and a crucial part of the supply chain from the Bowen Basin, any sale of the asset is likely to go to players in the state’s coal sector.

Reported by the Australian Financial Review, the fund has apparently issued confidentiality agreements to interested parties after an approach from a consortium of miners.

“While we know there is strong interest, it’s appropriate that we test out appetite and pricing for co-investing, as that means we make decisions on which options to pursue with the best information at hand,” BBI managing director Jeff Kendrew told the newspaper.

The AFR also mentioned that sources close to the fund had said a deal would be struck only for a good price and the newspaper said the 30-49% stake could be worth up to $500 million after debt, according to its own estimate.

Babcock & Brown Infrastructure has suffered considerable share price carnage and is trying to resolve its difficult debt position.

The publicly listed company recently stopped paying dividends and also sold half of its New Zealand-based energy utility company, Powerco, to the Queensland Investment Corporation for $NZ400 million ($US219.71 million).

A planned upgrade to the terminal will lift its capacity from 65 million tonnes per annum to 85Mtpa.

The fund owns the asset outright under a 49-year lease from the Queensland government – which built it in 1983 – along with an option on another 50-year lease.