In a statement released to the market today, NHC said it had “received a number of preliminary and incomplete proposals from third parties in relation to potential change of control transactions.”

The board believed it was appropriate to undertake a formal process so it could decide if a proposal for NHC was available at a price and on terms that were in the best interests of the company’s shareholders.

The formal process, which is expected to take several months, will allow selected parties to submit proposals to the board.

NHC chairman Robert Millner said the company had a unique range of assets, making it a target for a takeover.

“New Hope has a very large reserve and resource base, it has a significant development pipeline and it is a low cost producer with access to infrastructure,” Millner said.

“However, it is the duty of the board to consider legitimate opportunities for the company which may be in the best interests of all shareholders.

“A formal process will allow the board to assess these opportunities in a considered manner, with minimal disruption to New Hope’s day-to-day business activities.”

Millner said the formal process might not result in a proposal being made by the board.

If this was the case, NHC would continue with its strategy to grow as a company and create shareholder value.

NHC has appointed Pitt Capital Partners as financial advisers and Baker & McKenzie as legal advisers for the duration of the formal process.

NHC recently boosted its net profit after tax 174% year-on-year to $A503.1 million.

Looking to 2012, NHC said it was targeting 6 million tonnes per annum of coal production for 2012 but would also aim to double production in the coming years due to its boosted exploration portfolio.

NHC’s flagship project is the Acland open cut mine in Queensland, which holds 855Mt of resources including 410Mt measured and 435Mt indicated.