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Linc opts out of the coal business

26th June 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Diversified energy producer Linc Energy on Wednesday denied speculation that it was looking to acquire a hard coking coal mine in Queensland, instead saying that it intended to divest or demerge its noncore coal division from the corporate group, in the near term.

Linc currently holds some 30 tenements under exploration permits in Queensland, and a further three tenements under application. The company also has two granted mineral development licences, with a further 15 under application, and three mining lease applications and two petroleum lease applications, in Queensland.

Linc has previously reported that its wholly owned subsidiary, New Emerald Coal, would be used as a divestment vehicle for the coal tenements, with new Emerald being transitioned into a separately operating vehicle, within the Linc group.

The divestment of the coal division would likely be completed during the second half of this year.

Linc said on Wednesday that to facilitate the divestment or demerger of its coal division, the company was continuing to evaluate a number of options, including possibly working with joint venture partners.

“Linc Energy is focused on developing its core business of oil production and the commercialisation of underground coal gasification on a global scale,” said CEO Peter Bond.

“As such, Linc Energy is committed to divesting its coal division, and is actively pursuing a course to achieve this,” he said.

Edited by Creamer Media Reporter

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