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01-08-2014, 06:39 AM
http://www.businesstimes.com.sg/premium/...c-20140801
PUBLISHED AUGUST 01, 2014
Aussie project go-ahead a revenue boost for Linc
Value of royalty contract will also surge, it says
BYANDREA SOH
sandrea@sph.com.sg @AndreaSohBT
THE Australian government's approval for the development of the Carmichael coal mine in Queensland would generate about A$133 million (S$154.1 million) a year in revenue for mainboard-listed Linc Energy, as it owns royalty over the coal that is mined and transported.
Not only that, the value of the royalty contract - which can be traded - will also "increase considerably", said its CEO Peter Bond in a news release yesterday.
Linc Energy sold the underlying coal asset to Indian conglomerate Adani Group 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.
The proposed development of what is expected to be the largest coal mine in Australia, has got environmentalists up in arms as they say it would threaten the Great Barrier Reef.
PUBLISHED AUGUST 01, 2014
Aussie project go-ahead a revenue boost for Linc
Value of royalty contract will also surge, it says
BYANDREA SOH
sandrea@sph.com.sg @AndreaSohBT
THE Australian government's approval for the development of the Carmichael coal mine in Queensland would generate about A$133 million (S$154.1 million) a year in revenue for mainboard-listed Linc Energy, as it owns royalty over the coal that is mined and transported.
Not only that, the value of the royalty contract - which can be traded - will also "increase considerably", said its CEO Peter Bond in a news release yesterday.
Linc Energy sold the underlying coal asset to Indian conglomerate Adani Group 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.
The proposed development of what is expected to be the largest coal mine in Australia, has got environmentalists up in arms as they say it would threaten the Great Barrier Reef.