Carmichael Royalty

9 May 2014
ADANI GALILEE COAL MINE APPROVAL PROFITS LINC ENERGY
Linc Energy (SGX: T16) is pleased to note that the Adani Group has obtained State Government approval for the US$15.5 billion Carmichael coal and rail project in the Galilee Basin in Queensland, Australia.
The mine is planned to produce up to 60 million tonnes per annum of thermal coal to be used in power stations. The project also includes a 189-kilometre rail line north-west of Clermont and has a potential 90 years of mine life.
Linc Energy holds a A$2.00 per tonne royalty for every tonne of coal mined and transported off site, which is tied to CPI (inflation) index. Subsequently, at face value, Adani's 60 million tonne per annum coal mine could generate approximately A$120million per annum in profits for Linc Energy. Linc Energy’s royalty entitlement is tradeable, making it potentially very valuable especially once the mine goes into production. ( Sold for $155 M LOL)
Queensland Deputy Premier and Minister for State Development, Infrastructure and Planning, Jeff Seeney, said, "This project has the potential to be the largest coal mine in Australia and one of the largest in the world."
Adani welcomed the approval and said