Australia’s Linc confirms talks with Adani

Adani Enterprises is in talks with Linc Energy of Queensland, Australia, to buy its coal mines worth $1.3 billion, Peter Bond, CEO of the company, confirmed to Australian media on Wednesday.

DNA broke the story on Wednesday.

“Linc Energy remains in detailed negotiations with a number of parties in relation to the sale of its non-core Queensland coal tenements,” the company said in a statement.

The coal block is said to have reserves of around 8 billion tonne.
Meanwhile, Adani has also been allowed to conduct a feasibility study to construct a port at Dudgeon Point near Mackay in Queensland.

The state government owned North Queensland Bulk Ports Corporation announced that Adanis have been given the rights to access the viability of the port.

The area is in a close proximity to Dalrymple Bay Coal Terminal (DBCT) and Hay Point, which is jointly operated by BHP Billiton and Mitsubishi.

Adani and DBCT Management, which leases DBCT, will separately draw up plans for export terminals at Dudgeon Point, Mary Steele, a spokeswoman for North Queensland Bulk Ports Corp.

She did not specify the capacity of the port. Dudgeon Point, where Adanis are looking to set up the port, is at about 15 kilometers south of Mackay on the Queensland Coast and lies within the Port of Hay Point.

DBCT has recently expanded its coal production capacity at the site to 85 million tonne per year and BHP Mitsubishi is planning to ramp up the production to 55 million tonne from the current 44 million tonne per year.

It is this area where Adanis have got the permission to study and set up a port, if possible. The port will help Adanis to cut on huge logistic costs of shipping coal to India. Adani Group operates the Mundra port on the west coast of India which has a total coal handling capacity of 30 million tonne. With Bloomberg