Australian mining company Linc Energy is engaged in early talks with BHP Billiton and Mitsubishi to acquire Gregory Crinum coking coal complex in Queensland.

The ongoing developments are said to be in line with BHP’s plans to narrow down costs by offloading minor or unprofitable assets amidst faltering coal prices.

On the backdrop of market conditions, the joint venture endeavor between the two companies, BHP Billiton Mitsubishi Alliance (BMA) has suspended operations at the mine and has employed UBS to seek acquirer along with Crinum underground mine.

Earlier in February 2013, BHP claimed that the company would not likely to make a concrete decision on the sale of the mine until latter half of 2013, reported The Wall Street Journal.

Linc Energy, meanwhile, has stated to the stock exchange that it has planned to restructure its coal division in a bid to enhance its oil and gases unit.

The company has confirmed that it has not forged any binding offer with any entity in relation to the matters subject to current media speculation, reported Reuters citing a statement from the company.

Industry sources, however, claim that BHP could gross proceeds of $20bn from the sale of 10 proposed assets including Mount Nimba iron ore project in Southern Guinea and its Nickel West operations.