Linc Energy has sold a non-core coal tenement in the Galilee Basin in northwest Queensland to Indian company Adani Mining, a subsidiary of Adani Enterprises.
The sale involves an Aus$500 million cash payment and a $2/tonne royalty for the first 20 years of coal production. It is the largest single investment by an Indian company into Australia.
The Galilee tenement has a resource statement of 7.8 billion JORC-compliant tonnes of coal and the tenement is capable of annually producing up to 60 million tonnes of coal once fully operational.
Adani Enterprises, which is part of the Adani group, is expanding its coal mining business to meet India's huge demand for coal in power generation operations.
Adani has obtained approval from Australia’s Foreign Investment Review Board for the Galilee acquisition, and indicative approval for the transfer of the coal tenement from the Queensland State Government.
Linc Energy’s CEO Peter Bond says, “Linc has also secured the exclusive right to negotiate with Adani on the joint development of any proposed future underground coal gasification operations within the Galilee tenement.