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Linc Energy has received strong interest from a number of international coal investors for Teresa – estimated to be worth $450 million – and is in final negotiations with the top four bidding groups prior to binding offers.
While recent state and federal legislative and regulatory changes have had to be addressed during the Teresa sale process, chief executive Peter Bond said Linc had been encouraged by overseas investors keen on securing access to Australian coal resources.
“From my discussions with potential suitors for the Teresa coal asset, the recent stock market correction does not appear to have affected their long term view or their immediate requirements,” he said.
“The timing of the sale of any coal asset and indeed even who the final buyer will be is often difficult to predict during a sale process.
“The circumstances driving each potential buyer, even though similar in philosophy, have very different timetables and requirements.”
At the completion of the current phase of discussions and negotiations Linc Energy aimed to reach a binding agreement with one of the remaining parties, supported by a cash deposit, the company said.
Separately to the discussions with potential buyers, Linc Energy has continued to develop the Teresa coal mine operation, having lodged a mining lease application and started the environmental impact study while also addressing mine infrastructure, rail transportation and port access requirements.
This ongoing development work continued to add value to the Teresa coal asset, the company said.
There are now more than 50 mining projects being considered for the Bowen Basin worth $25 billion, according to the register of central Queensland coal development projects.
There are 13 coal projects at an advanced stage of construction in the Isaac region alone, with 12 mines currently expanding.
Major projects BHP Billiton’s new $1.6 billion Daunia mine and Rio Tinto’s $1.1 billion Kestrel mine expansion.
In the past 12 months, $4.7 billion worth of projects have started construction in the Bowen Basin.
