SINGAPORE - Oil and gas producer Linc Energy said on Thursday that it is one step closer to earning royalty revenue from the Carmichael Coal Mine and Rail Infrastructure project in Australia.
The A$16.5 billion (S$19.1 billion), 60 million tonne project recently received approval from Australia's Federal Minister for the Environment Greg Hunt, Linc Energy said.
The Singapore-listed company sold the project's underlying coal asset to the Adani Group in August 2012 and now holds an inflation-indexed A$2 per tonne royalty for production from the Carmichael Coal Mine.
Assuming Adani meets its predicted peak production target of 60 million tonnes per year, the royalty payable to Linc Energy would generate approximately A$133 million a year in revenue for Linc Energy.
The Carmichael project is expected to operate for about 90 years and to generate benefits for the Queensland economy of about A$500 million per year during its construction period and about A$3 billion per year at full capacity, according to Linc Energy.
The Carmichael Project will have a yearly resource value of A$5 billion and a lifetime resource value of at least A$300 billion.