Australian coal producer Caledon Resources Plc said on Tuesday it will not pursue sale of the company, following an extended strategic review, sending its shares down 15.5 percent in early trade on the London Stock Exchange.
Caledon said despite the high level of interest in the company and recognition of its assets, no party made a final and binding offer. This resulted in the management discontinuing the sale process.
The company said it would focus on growing production at its Cook mine and developing the nearby Minyango project, in Australia.
Given the positive outlook for coal and the opportunities at hand, Caledon will remain one of the few independent coal producers in the Bowen Basin, the company said in a statement.
It expects 2009 saleable production from its Cook mine to be about 485,000 tonnes, Caledon said.
The company is also planning on a base production of 700,000 tonnes of saleable coal for 2010 and investigating options for further expansion, it said.
The company, in February, had appointed RBC Capital Markets to conduct a strategic review after it received an indicative offer approach.
Caledon shares were down 9 pence at 49 pence at 0900 GMT. (Reporting by Tresa Sherin Morera in Bangalore; Editing by Aradhana Aravindan)