* Wesfarmers looks at coal sale options
* Comes as coal prices soar (Adds quotes, details)
By James Regan
SYDNEY, Nov 16 (Reuters) - Australia's Wesfarmers Ltd WES.AX on Wednesday said it was evaluating options for its coal mining division following an unexpected price surge that is turning coal into one of this year's hottest commodities.
"Wesfarmers is continuing to consider a broad range of options, from operational to divestment initiatives, including recently seeking expressions of interest from external parties who may want to acquire the coal assets," it said in a statement.
Wesfarmers hasn't put a price tag on the mines, but the division, producing steel-making grade coking coal and thermal coal for power generation, could fetch upwards of A$2 billion ($1.5 billion), according to sources in the sector.
"Coal mines are very much in demand again," a private equity fund manager specialising in Australian coal assets said. "If ever there was a time to sell a coal mine, now is it."
Wesfarmers runs one of Australia's largest independent coal mines, producing around 8.5 million tonnes of coking coal and 3 million tonnes of thermal coal annually.
Driven by a sharp cut in Chinese coal mining and strong demand across Asia, Australian coal prices have more than doubled, making coal one of the top-3 bull-runs ever and 2016's hottest commodity.
Wesfarmers, more known for its supermarket, hardware and retailing businesses, has long expressed an interest in exiting the mining business.
($1 = 1.3261 Australian dollars)