The float offers a share in the Newpac bord and pillar operation, formerly the Nardell mine, which was bought by Resource Pacific in December last year and re-opened in April 2004.

The Nardell Coal Corporation collapsed in February 2003 and was bought out of receivership by a consortium led by former Nardell managing director Paul Jury for $6 million plus $1.3 million to replace bank guarantees.

The semi-coking coal mine located at Ravensworth in the Hunter Valley has resources of 255Mt and currently produces 50,000 tonnes a month from its north western block.

If all goes to plan, Jury said the company would look at investing a further $173-$192 million to introduce a longwall. Jury said longwall mining would act as a safety net should the coal market start to slow.

A longwall mine would enable Newpac to produce four million tonnes a year by 2008, and five million tonnes in 2009.

By mid next year Resource Pacific will have completed a bankable feasibility study to assess longwall mining of the southern block – a study it believes will support the development of longwall mining.

The two longwall plans floated include a 2Mtpa longwall and a 4Mtpa longwall mine.

Longwall panels of 250m wide and 1.2 to 2.4km long have been proposed. Panels will be aligned northeast to southwest and accessed off a set of main headings driven along the eastern lease boundary after penetrating the Hunter Valley dyke and the block fault zone.

Development would use two continuous miners and a specialised jumbo drill rig.

If Resource Pacific opts for its most ambitious plan, the coal preparation plant and stockpiles will have to be upgraded and a larger underground conveyor and new longwall equipment will need to be installed.

Under the 2Mtpa plan Resource Pacific would lease second-hand longwall equipment.

The IPO is due to close on November 22.