Aquila Resources says it is in advanced negotiations with an Indian consortium regarding the sale of its Washpool coal project in Queensland but is yet to receive an acceptable offer.
An Indian group of five state-owned metals and mining companies (International Coal Ventures Limited-ICVL) has agreed to a $301 million deal, but delays in getting Indian government approval were holding up the process, according to news reports.
The Queensland coking coal asset would produce about 38 million tonnes of coal over the 15- to 20-year life of the project, according to Aquila.
"The company confirms that it is in advanced discussions with ICVL, however, at this time, no binding offer capable of acceptance has been received from ICVL," Aquila executive chairman Tony Poli said in a statement.
Indian cabinet approval is required for large overseas asset investments.
Indian giant the Adani Group plans to develop Queensland's largest coal mine along with a new town, port facilities, airport and railway line in the Galilee Basin.
Aquila, which is in the ASX100, said this week it expects to complete the sales of Washpool and its South African Avontuur manganese project during the current half-year.
Aquila this week announced a $29.9 million loss for the first half, with exploration and development costs outweighing the $30.8 million in gross profit it earned from its 50 per cent in the Isaac Plains coal mine.
The cash from the sale of Washpool would go only a small way to funding about $3 billion for Aquila's 50 per cent share of its $6 billion West Pilbara iron ore project and associated infrastructure.
Aquila shares were five cents, or 0.97 per cent, weaker, at $5.08 at 1405 AEDT, in line with broader market falls.
