Increasing its international stock, Talbot Group has become a substantial investor in American east coast coal company PBS Coals, which operates a number of coking coal mines in Pennsylvania.

PBS produced about 2 million tonnes of coal last year.

PBS plans to list on the Toronto Stock Exchange by way of reverse takeover in August this year.

The move will allow Talbot to capitalise on record export coal prices and avoid Australia’s congested supply chain.

He said PBS mines were serviced by two rail networks and two export ports which have underutilised capacity.

“I am delighted to be part of an exciting coking coal opportunity on the east coast of North America, where PBS’ mines are located, with access to rail and ports,” Talbot said.

“The markets for the coal will be Brazil and Europe, which are viewed as strong growth regions for steel production and hence PBS coals.”

In the newly listed company Talbot will be director and Talbot Group resources director Denis Wood will become an executive.

The Talbot Group also has investments in Africa and Asia.