Brisbane-based Linc Energy is in talks to buy a mothballed coal mine in Queensland from owners BHP Billiton and Mitsubishi, according to The Wall Street Journal.
BHP is trying to sell the Gregory Crinum coking coal complex as part of a cost-cutting push to sell smaller and less profitable assets.
The BHP Billiton Mitsubishi Alliance shut the unprofitable open-cut Gregory mine last year, before pairing it with the nearby Crinum underground mine and putting it on the market, the newspaper said.
Gregory Crinum has 8.3 million tonnes of coal and mining is forecast to continue for four more years.
Linc has has a portfolio of undeveloped coal assets in Australia that includes the Teresa deposit in Queensland.