Australian miner Aquila Resources Limited has announced that it is in advanced talks with International Coal Ventures Private Limited (ICVL), a joint venture set up by Indian companies SAIL, CIL, RINL, NMDC and NTPC with the initiative of India's ministry of steel, regarding the sale of its Washpool coking coal project located in Queensland.
According to Aquila Resources' statement lodged with Australian Securities Exchange, no binding offer eligible for acceptance has been received from the Indian consortium.
Aquila is seeking to sell assets to raise more than A$3 billion ($3.24 billion) to fund its 50 percent share of a new iron ore mine and port project in Western Australia, according to media reports. Aquila expects the Queensland coking coal asset to produce about 38 million mt of coking coal over the 15 to 20-year life of the project.
The sale transaction is still subject to Indian government approval, since large overseas asset investments require approval from the Indian government.