Austral Company secretary Stephen Peterson told International Longwall News the company had been in talks with several parties interested in acquiring shares in its Tahmoor longwall mine in New South Wales, but would not confirm suitor identities.

The Economic Times reported yesterday SAIL had pitched for a 25% stake in Tahmoor North in a move to ensure coking coal supplies.

The report said Coal India (CIL) had also shown interest in the Australian mine, but may pull out of the bid in favour of SAIL.

It is also thought Japanese steel mills would be the likely suitors for Tahmoor.

During December Austral directors appointed the ANZ Investment Bank to conduct a strategic review for the company, including consideration of these approaches.

Last month the company downgraded its profit expectations to a loss of A$9.5 million for the current fiscal year as problems associated with the commissioning of Tahmoor North continued.

Last week Austral issued a A$14.5 million share placement to raise working capital. During the December quarter the mine produced 480,000 tonnes, bringing year to date tonnage to 1.7Mt.