The negotiations between the Government and the group including BHP Billiton Ltd. regarding the privatization of the coal freight business of Queensland Rail are still going on, as expressed by Premier Anna Bligh. But, she declined to disclose anything more.

As stated by an Australian’s newspaper, the association of coal Companies is now demanding the deal to be realized at $5.2 billion from an earlier amount of $4.8 billion.

Andrew Fraser, Treasurer of Queensland told that there would be no further disclosure on the offer and the negotiations, which is going to get listed in the fourth-quarter. An IPO amounting to $3 billion would be raised by QR.

Fraser said, “The Government is determined to secure the best deal for taxpayers and the long term interests of the Queensland economy”.

The mining group that comprises of Xstrata Plc and the 11 other producers want to get hold of the QR, on account of increasing demand of rail tracks from Asian steelmakers. Before making any decision, the Queensland’s Government will review the books of accounts of the rail units.

Last month, the state owned rail provider QR Ltd. was divided into Queensland Rail, which would run passenger trains and services; and QR National that would take care of country’s transport and logistics business. The Company was valued at $12 billion, prior to the split.

The association of miners would use $2.05 billion for the railroad and to subscribe to the offer, they had already taken a loan of $1.35 billion.