Aug 3 (Reuters) – Australia’s Linc Energy (LNC.AX) has agreed to sell its Galilee coal tenement to India’s Adani Enterprises (ADEL.BO) in a deal worth A$3 billion, Linc’s chief executive told Reuters on Tuesday.
Under the deal, Linc, whose primary business is underground coal gasification, will receive A$500 million in cash and A$2 per tonne in royalty for the first 20 years of coal production, Linc’s Chief Executive Officer Peter Bond told Reuters.
Linc has been trying to sell its Teresa and Emerald coal tenements in Queensland for more than two years, after a deal with China’s Xinwen Mining Group for A$1.5 billion in 2008 and subsequent talks with Yanzhou Coal (1088.HK) fell through.
It later expanded sale process to include its Galilee and Pentland coal tenements, which Linc has said have excellent coal mining potential. (Reporting by Fayen Wong; editing by Balazs Koranyi)
