The final Queensland government approvals for the transaction came in late last week, providing solid proof that Indian companies are prepared to open the purse strings and invest in Australian resource plays.
“This is one of the best managed sales transactions in recent memory,” Linc Energy chief executive Peter Bond said.
“We have gone from announcement of a deal to completion and receipt of funds in less than a week.
“This is an extraordinary result, and one directly related to the incredible hard work and diligence of both the Linc Energy and Adani teams.
“We would also like to take this opportunity to thank the various levels of the Queensland government for their assistance on this deal.
“Given that this was the biggest investment into Australia by an Indian company, it was great to see that Queensland put its best foot forward.”
Under the deal Adani also agreed to a generous royalties regime that Linc expects to provide a total cash stream of $3 billion.
Subsidiary Adani Mining agreed to pay a $2 per tonne royalty on future coal from the tenement for the first 20 years of production.
This rate is also linked to Australia’s consumer price index to make sure it keeps pace with inflation.
Linc also gained the exclusive right to negotiate with Adani over joint development of any future underground coal gasification opportunities in the Galilee tenement.
Consequently, the UCG player will keep the market updated on Adani’s development progress with the project.
Adani is a leading Indian coal importer and is keen to expand into Australia.
Recently the state-owned North Queensland Bulk Ports Corporation selected Adani and Dalrymple Bay Coal Terminal Management as the preferred proponents to develop new coal export terminal facilities at Dudgeon Point near Hay Point.
Linc is also planning to sell two other coal tenements, with the Emerald tenement likely to be the next sale.
A conceptual mine development study has been completed by MineCraft Consulting on the Theresa project on the Emerald tenement in the Bowen Basin.
The study identified a 3.8 million tonne per annum underground longwall mine development with a mine life of 30 years.
Of the annual output, 2.5Mtpa would be semi-soft coking coal and 1.3Mtpa thermal coal.
MineCraft Consulting valued the project at $529 million.
Linc shares closed down 13c to 186.5c yesterday.