Northern Energy managing director Keith Barker said it had received expressions of interest from a "range of internationally based coal industry participants" and was now preparing a shortlist before announcing its partner at the end of next month.

“The level of interest reinforces our belief that the project has not been appreciated by the market as yet," Barker said.

Northern Energy is considering selling up 49% of the project. The joint venture partner would fund the initial mining project and enter into a long-term offtake agreement for the output of the mine.

The partner would also fund ongoing exploration at Maryborough and pay an upfront participation fee.

Northern Energy continues to explore the Maryborough tenement while it makes plans for the development of an opencut mine on the site.

The company is also exploring transport options, including shipping coal from the Bundaberg Port.

It said the Bundaberg operators, Port of Brisbane Authority, and Queensland Sugar had indicated a keen interest in the project using its current infrastructure.

Barker said the port presented an opportunity for coal purchasers to decrease their reliance on the congested coal chains elsewhere on the east coast and add a sweet coal to their current coking coal mix.

Northern Energy is targeting production at Maryborough towards the end of 2009.

“This is an exciting project for Northern Energy as it will move us from our current status of explorer to that of a coal producer," Barker said.

Northern Energy was trading down 5% mid-morning at $A1.32.