“Linc Energy has become aware of further media and market speculation this morning as a consequence of articles published in today’s Australian, The Age and Sydney Morning Herald newspapers regarding an impending sale of one of Linc Energy’s non-core assets in Queensland to Adani Enterprises,” the company announced this morning.
“As previously announced, Linc Energy remains in detailed negotiations with a number of parties in relation to the sale of its non-core Queensland coal tenements. We confirm that Adani Enterprises is one of those parties.
“These negotiations remain commercial in confidence and, whilst very well advanced, no concluded contract terms have been agreed with any party as at the time of this announcement.
“Linc Energy will immediately advise the market should this position change.”
Adani is a leading coal importer in the country and is keen to expand into Australia.
State-owned North Queensland Bulk Ports Corporation recently 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.
Even during the 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.
Linc shares are up 9.4% to 174.5c this morning.