Xstrata considers partner for Wandoan coal project

LONDON Feb 14 (Reuters) - Xstrata, one of the world's largest thermal coal exporters, is considering bringing an additional partner into its giant Wandoan coal project in Queensland, Australia, already part-owned by Japan's Itochu and Sumitomo.

Xstrata, which last week agreed to be taken over by commodities trader Glencore, owns 75 percent of the project. Wandoan is expected to produce a thermal coal output of 22 million tonnes per year initially, expanding to 63 million tonnes.

Itochu and Sumitomo each own 12.5 percent.

"As part of the ongoing feasibility process for the project, Xstrata Coal and our partners Itochu and Sumitomo are investigating options for the project's development, including the potential to introduce an additional partner," a spokeswoman for the miner said.

Earlier on Tuesday the Wall Street Journal reported Xstrata had appointed Macquarie to advise on the sale of a 20 percent interest in the project.

A coal industry source told Reuters there was a lot of interest from Indian and Chinese buyers in coal mining assets in the region and a deal would allow Xstrata to secure a buyer for the hard coal output from Wandoan, which could become Australia's largest coal mine. (Reporting by Clara Ferreira-Marques and Jacqueline Cowhig; Editing by Greg Mahlich)