On October 7 Essar signed a preliminary, non-binding and conditional proposal to buy Rocklands at 50c cash per share.

Essar said on Tuesday it did not wish to proceed with the proposal.

Rocklands is pursuing reasons for the withdrawal and expects an answer from Essar next week.

Another preliminary, non-binding and conditional proposal from India’s Jindal Steel and Power made two weeks before the Essar bid remains in place.

Jindal is continuing due diligence on its offer of 42c per share via a scheme of arrangement or a friendly takeover.

Rocklands has three coal projects in Queensland’s Bowen Basin and has funded exploration through the earnings of China Coke and Chemicals, which it acquired via a reverse takeover in 2007. China Coke has a 480,000 tonnes per annum coking plant in eastern China.

Rocklands’ Hillalong project 100km west of Mackay has JORC-compliant coal resources of 61.3 million tonnes while its namesake project 40km south of Blackwater has resources of 880Mt.

On Tuesday, shares in Rocklands dropped 15.29% to 36c on the news.