Linc Energy sells Aussie coal royalty rights

ENERGY exploration and production firm Linc Energy has agreed to sell its royalty deed for the Carmichael coal mine to Adani Group for A$155 million (S$180 million) in cash.

The group had earlier said that the royalty contract would generate about A$133 million a year in revenue.

Linc Energy sold the underlying coal asset to the Indian conglomerate in August 2010, and holds an inflation-indexed royalty contract that provides for A$2 for each tonne of coal produced from the Carmichael coal mine for the first 20 years of production.