While India’s Economic Times enthusiastically reported the transaction was for a coal mine, Adani is a leading coal importer in the country and is keen to expand into Australia.
On Monday, state-owned North Queensland Bulk Ports Corporation selected Adani along with Dalrymple Bay Coal Terminal Management as the preferred proponents to develop new coal export terminal facilities at Dudgeon Point near Hay Point.
Linc distanced itself from the speculation by saying it was in detailed negotiations with a number of parties.
“Linc Energy confirms that at this stage it has not concluded any binding contract or finalised any material terms with any party,” the company announced.
Even during the recent uncertainty caused by the resources super-profits tax proposal, Linc was attracting strong interest for its Emerald, Pentland and Galilee tenements as interested parties were concerned with securing coal supply.
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, which carried out the study, valued the project at $529 million.
After rising by up to 25% during trading yesterday, Linc shares finished up 22% to $1.38.
They have since shed 4.5c this morning.