Whitehaven Coal says it is better placed now to develop the highly regarded Maules Creek coal project in NSW after it sold a stake in the development.

The statement comes after Whitehaven sold a 10 per cent stake in the development to Japan’s biggest electricity company for $370 million.

The transaction would provide a substantial portion of the funding required to develop Maules Creek, Whitehaven Coal managing director Tony Haggarty said.

Billionaire Nathan Tinkler’s Aston Resources struck a deal to sell the interest before Whitehaven Coal swallowed up Aston in a friendly takeover late last year.

Whitehaven shares rose on the news and were seven cents higher at $3.95 by 1554 AEST.

The buyer of the interest is J-Power Australia. Its parent company is Electrical Power Development, Japan’s largest electricity utility.

The sale will reduce Whitehaven’s stake to 75 per cent from a current 85 per cent, with the remaining 15 per cent held by ICRA MC, which is associated with Japanese giant Itochu.

Developing the Gunnedah Basin project is estimated to cost about $553 million.

It will produce metallurgical coal, used in steelmaking, which is higher priced than Whitehaven’s power generating thermal coal mines.

Aston paid about $500 million for Maules Creek in 2009 from mining giant Rio Tinto, which was offloading assets to reduce debt.