By Angela Macdonald-Smith
March 9 (Bloomberg) -- Linc Energy Ltd. gained the most in six months in Sydney trading after increasing the estimate of a coal resource in Queensland and saying a state policy provided “certainty of tenure” for the project.
Brisbane-based Linc, the Australian producer of cleaner- burning transport fuels, advanced as much as 56.5 cents, or 46 percent, to A$1.79 on the Australian stock exchange and was at A$1.71 at 11:52 a.m. local time. The move outpaced a gain of as much as 2.4 percent in the exchange’s benchmark energy index.
The Australian company said after the market closed March 6 that the Chinchilla deposit may hold 775 million metric tons of coal, 29 percent more than estimated in August. The resource is enough to supply a 20,000 barrels-a-day coal-to-liquids project for more than 60 years, Chief Executive Officer Peter Bond said.
Linc also said in the statement sent to the exchange that a new policy announced by the Queensland government to address overlapping licenses held by underground coal gasification and coal-seam gas companies allows production trials to continue as planned at the Chinchilla project. Litigation initiated by BG Group Plc involving Linc has been dismissed, it said.
To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net
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