Linc to sign asset deal with Adani Tuesday -paper

SYDNEY, Aug 2 (Reuters) - Australia's Linc Energy has finalised a deal to sell a key coal asset to India's Adani Enterprises and a deal will be signed on Tuesday, newspapers reported on Monday.

The sale of Linc's Galilee coal tenement in Australia's Queensland state could be worth up to A$1 billion ($904.2 million) and Adani is expected to set a production target of 50 million tonnes in the next four years, the Sydney Morning Herald said citing sources close to the deal.

Shares of Linc have rallied nearly 60 percent since the start of July after the firm said it had received a written offer for three coal assets put up for sale last year.

The stock was also boosted when Adani, one of the reported bidders, raised $850 million to fund expansion, particularly the purchase of coal-related assets.

Linc has repeatedly said it was in talks with parties interested in its coal assets but said talks were confidential.

(Reporting by Balazs Koranyi; Editing by Ed Davies) (If you have a query or comment on this story, send an email to [e-mail]) ($1=1.106 Australian Dollar) Keywords: LINC ADANI/ ([e-mail]; [phone]; [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.