“Whitehaven has now received a number of non-binding indicative proposals and a selected short-list of parties have been invited to complete detailed due diligence and submit binding proposals,” the company said.

“The formal process is expected to continue for a number of months and may or may not result in a final proposal being made and recommended by the board.”

China Shenhua Energy and Felix Resources-acquirer Yanzhou Coal Mining are tipped to be in the running.

MetroCoal joint venture partner China Coal was also discussed as a potential bidder by the Australian Financial Review, which reported that Peabody Energy had “walked away”

Whitehaven’s mines are in the Gunnedah Basin of New South Wales, which also hosts Shenhua’s giant Watermark project – the first outside of China for the major thermal coal producer.

Yanzhou is the biggest Chinese coal player in Australia, officially completing its $A3.5 billion takeover of Felix and its portfolio of mines and projects early last year.

Yanzhou acquired the Austar longwall mine for a mere $US24 million the year after the Christmas Day fire in 2003, and first introduced the mining method of longwall top coal caving to Australia at this mine.

Whitehaven’s key Narrabri North mine is expected to produce first longwall coal in December, and the company has long flagged the potential to start top coal caving to extract the full 8-9 metre thick Hoskissons seam.

China National Coal Group Corporation, better known as China Coal, kicked off a JV with Queensland explorer MetroCoal in October for the Columboola underground project in the Surat Basin.

After spending $30 million on exploration, China Coal will earn a 51% stake.

But this deal was executed about six months after it was first announced.

As with other Chinese investments into Australian coal projects and companies, it required various Chinese government approvals along with a nod from the Foreign Investment Review Board.

In the case of three potential Chinese bidders for Whitehaven, Chinese authorities will have further considerations to make.

Some Korean and Indian companies are also reportedly interested in the Whitehaven sale.

Shenhua purchased the five-year Watermark exploration licence off the NSW government for $A299.9 million in 2008.

Whitehaven shares are unchanged at $7.14 this morning.