APAC closed its IPO last week after reaching the minimum subscription level, issuing shares at 20c. The company's largest shareholder at almost 55% is Singaporean conglomerate Magnus Energy Group which has interests in oil, gas and coal.

“APAC Coal has entered into an exciting phase of its development and with the capital from the IPO proceeds we will be able to quickly commence production of thermal coal from a new mine which is currently in the pre-production phase,” chairman Paul Piercy said.

APAC holds a resource of 5.1 million tonnes of coal in a 68,000-hectare concession in East Kalimantan. Of the resource, 1.4Mt is inferred and 3.7Mt is indicated.

The company said its project lies close to existing infrastructure which will enable it to keep its costs low.

“The mine in East Kalimantan, Indonesia is currently in the pre-production phase and the coal will be sold principally in the domestic energy market with the intention of very quickly entering the international export market,” Piercy said.

He added APAC had plans to develop a "one-stop centre for coal", encompassing crushing, blending and stockpiling to reduce costs.