Market rumours point at South32 as the most likely buyer, since the miner decided last month to ditch its $200 million acquisition of Peabody Energy’s coal mine in New South Wales.
Investors in a small-cap junior focused on the mining of a lesser-known element - scandium - were rewarded on Friday after a favourable decision from the New South Wales government in Australia.
They fear the buyer, Malabar Coal, may revive mining at Drayton, which they claim would have have severe impacts on the area’s profitable stud farms and wineries.
The miner faces another shareholder revolt as Australia’s Tribeca has joined calls by US activist investor Elliott Management for an exit from shale to free up capital.