The conditions include a separate issue of 15% of Rocklands’ share capital to Jindal at the lower price of 42c per share.

If Jindal’s stake of Rocklands hits 19.9%, the Indian steelmaker wants to be the operator and manager of Rocklands’ metallurgical coke operations in China.

Another condition will require Jindal to fund drilling on Rocklands’ Queensland coal tenements within set periods.

Jindal owns 13.5% of Rocklands and seeks a nominee to the Queensland company’s board for this stakeholding.

Rocklands said its board would meet shortly to discuss Jindal’s proposal, along with the rival 56c per share bid from Chinese metallurgical coal producer Meijin Energy Group and other options to “maximise shareholder value”

Meijin’s offer is also informal and neither bid is ready for submission to Rocklands shareholders.

Just over three weeks ago Jindal sold off almost 3% of Rocklands shares in a single day of trading.

The steelmaker defended the move by saying it was close to the 15% approval limit of the Foreign Investment Review Board.

Rocklands shares are down 9% this morning to 30.5c.