Australia's Linc Energy has agreed to sell its Galilee coal tenement to Adani Enterprises in a cash and royalty deal worth $2.7 billion, Linc's chief executive told Reuters on Tuesday.Under the deal, Linc, whose primary business is underground coal gasification, will receive A$500 million in cash and A$2 per tonne in royalty for the first 20 years of coal production from the mine, Linc's Chief Executive Officer Peter Bond told Reuters."It's a fantastic deal for us. We also have the flexibility to sell the royalty agreement to monetise it into cash now, or hold it and receive the full benefit of 20 years of cash flow," Bond said in a telephone interview from Brisbane.Linc's shares, which have been suspended pending announcement on a sale of its non-core coal tenement in Queensland state, last traded down 1.6 percent at A$1.86, while shares in Adani Enterprises were up 2.37 percent in early Tuesday trade.The deal with Adani, the largest single mine investment by an Indian firm into Australia, could herald more Indian investments amid forecasts of an acute coal shortage in the developing nation.For a graphic on India's coal imports, click http://graphics.thomsonreuters.com/10/IN_CLIMP0610.gifBond said Adani has already obtained approval from both the Australia's Foreign Investment Review Board (FIRB) for the Galilee acquisition, and indicative approval for the transfer of the coal tenement from the Queensland State Government.Linc said it will now move quickly to complete the sale of its Theresa coking coal asset, for which the firm has already received strong interest.Linc has been trying to sell its Theresa coal tenements in Queensland for more than two years, after a deal with China's Xinwen Mining Group for A$1.5 billion in 2008 and subsequent talks with Yanzhou Coal fell through.It later expanded its sale process to include its Galilee and Pentland coal tenements, which Linc has said have excellent coal mining potential.(US$1=A$1.0992)(Reporting by Fayen Wong and Ketan Bondre; Editing by Valerie Lee)(For more business news on Reuters India click http://in.reuters.com)News posted by www.newsinfoline.com
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