Whitehaven Coal says it will formalise a process for possible bidders for the company, with ongoing interest being shown.
The move follows an announcement in August that Whitehaven was in discussions in relation to potential corporate transactions.
"In view of the ongoing interest being shown in the company, the directors of Whitehaven have decided to undertake a formal process to determine whether a proposal is available for the company at a price and on terms that are in the best interests of all shareholders," Whitehaven said in a statement on Friday.
Whitehaven has a market capitalisation of about $3.15 billion.
Whitehaven managing director Tony Haggarty said the company had "significant strategic value" and was one of Australia's few remaining substantial independent coal producers.
The company said the formal process was expected to take a number of months and may or may not result in a formal proposal to the board.
The company also released its first-quarter production results.
Compared to the equivalent period in 2009-10, coal production was up 11 per cent, to 1.11 million tonnes, while total sales were up 39 per cent at 1.59 million tonnes.
Whitehaven said production had been harmed at some mines by wet weather early in the September quarter, but performed well after that.
It said its PCI product achieved a fixed price of $US153 per tonne and a price for the period for October to December has been set at around $142 per tonne, free on board.
AAP