March 18 (Bloomberg) -- Linc Energy Ltd., which converts coal into liquid fuels, extended share gains as negotiations for the sale of coking coal permits in Australia’s Queensland state reach an advanced stage.
Brisbane-based Linc Energy gained as much as 6.4 percent to A$1.82, the highest intra-day price since Sept. 24, and traded at A$1.80 at 12:55 p.m. Sydney time. The company has climbed 13.4 percent this week.
Linc Energy has been seeking to complete the A$1.5 billion ($1.4 billion) sale of the Teresa coal tenements, or permits, in Queensland announced in 2008. Negotiations are at an advanced stage with at least one party, the company said March 16. It’s not possible to say when it may be completed, Linc said. Chief Executive Peter Bond wasn’t immediately available for comment.
“Given the strong increase in reported metallurgical coal prices, it is fair to assume interest would be strong and the prices received for the tenements will be higher than perhaps some pundits had expected six months ago,” Tim Schroeders, who helps manage about $1.1 billion at Pengana Capital Ltd. in Melbourne, said by e-mail.
JFE Holdings Inc. and Sumitomo Metal Industries Ltd., Japan’s second- and third-largest steelmakers, agreed to a 55 percent increase in steelmaking coal prices with Rio Tinto Group and Teck Resources Ltd. The mills will pay about $200 a metric ton for a three-month contract starting April 1, the Tokyo-based companies said yesterday.
To contact the reporter on this story: Ben Sharples in Melbourne at email@example.com
To contact the editor responsible for this story: Clyde Russell at firstname.lastname@example.org