Researched by Industrial Info Resources (Perth, Australia)--The...

Researched by Industrial Info Resources (Perth, Australia)--The private jet of Russian billionaire Roman Abramovich recently visited both Perth and Brisbane, fuelling speculation that the 50th richest person in the world is again considering business with Australian resource companies.

Abramovich, who made his fortune in the Russian oil industry during the 1990s, but is now most famously known as the owner of English Premier League team Chelsea F.C., has been linked with both Linc Energy (Brisbane, Australia) and BHP Billiton Limited (NYSE:BHP) (Melbourne, Australia) in recent months.

In June, it was reported that Abramovich was in talks with BHP Billiton to set up a joint venture to develop gold mines in Russia's far-eastern region of Baimskaya. The reserves the two were considering have been estimated at about 27 million tons of copper and 1,600 tons of gold (57 million ounces).

Under what is considered to be the most likely arrangement, BHP would hold a 75% share of the joint venture, with the other 25% being held by Abramovich's Millhouse Capital (London, England). It is still possible that the deal won't go through, but so far, both parties have refused to confirm or deny any plans.

Abramovich's November visit to Australia saw him meeting with Linc Energy Chief Executive Officer Peter Bond. The Australian Financial Review reports that the pair met Brisbane before touring Linc Energy's coal gasification demonstration facilities at Chinchilla, about 300 kilometres (185 miles) west of Brisbane.

According to records available through the Australian Stock Exchange (ASX), Linc Energy is currently operating in the red, with negative cash flows in the September quarter of AU$32.7 million (US$34 million), and more than AU$200 million (US$208 million) owed to U.S. bank Wells Fargo (NYSE:WFC) (San Francisco, California). The company reported a loss of AU$61.9 million (US$64.5 million) for the financial year ended June 30, 2012.

Linc Energy has been in talks with potential investors for some time, with plans to exploit its energy holdings in Australia and grow the business internationally. The confidential meetings between Bond and Abramovich have raised speculations that a potential investor may have been found.

Another option that news sources in Russia claim as a genuine possibility is that Abramovich is not interested in Linc Energy in order to access Australian resources, but in order to bring Linc technology home to Russia. The technology for turning underground coal into natural gas in use at Linc is reportedly derived from Soviet designs and well tests of the 1950s. However, the technology was never fully developed due to the discovery of Russia's extensive natural gas resources in the late 1960s.

The process is highly volatile, using high-pressure combustion at temperatures ranging from 700C (1300F) to 1,500C (2700F). Critics of the process claim that the risk of subsidence and contamination of ground water are unacceptably high.

Abramovich already has a small interest in Australian mining, having bought a 16% stake in Cape Lambert Resources Limited (Perth, Australia) through another of his companies, EVRAZ Group Pty Limited (London, England) in 2008.

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