Australia’s Linc Energy has agreed to sell its Galilee coal tenement to Adani Enterprises in a deal worth AUS $3 billion (US$ 2730 million), Linc’s chief executive told news agency.
Under the deal, Linc, whose primary business is underground coal gasification, will receive AUS $500 million in cash and AUS $2 per tonne in royalty for the first 20 years of coal production, Linc’s chief executive officer Peter Bond told Reuters.
Linc has been trying to sell its Teresa and Emerald coal tenements in Queensland for more than two years, after a deal with China’s Xinwen Mining Group for AUS $1.5 billion in 2008 and subsequent talks with Yanzhou Coal fell through. It later expanded sale process to include its Galilee and Pentland coal tenements, which Linc has said have excellent coal mining potential.
It is a bit of juggling game this process of extracting thermal and metallurgical coal from underground mines to ensure enough electricity and steel capacity worldwide while making sure the impact on the environment and people is minimal. Cherry of www.coalportal.com
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