Already listed on London's AIM, Caledon says an Australian listing would "meet potential demand from Australian based investors".

"Since the acquisition of the Cook Mine in 2006, the increasing proportion of revenues from Australia has raised our profile in the country," said Caledon executive chairman Robert Alford.

"We have been delighted by the positive feedback we have received from Australian based institutional investors, who clearly understand the importance of coal to their domestic and the global economy."

If its shareholders approve the plan during a general meeting on March 10, Caledon will aim to raise £10-15 million ($A21.6-32.4 million).

Caledon will seek secondary listing of its ordinary shares through the quotation of CHESS Depository Interests (CDIs), each of which will represent a beneficial interest in one of the company's ordinary shares. ABN Amro Morgans has been appointed lead manager and underwriter.

Part of the proceeds of the float will be used to meet final payment for the Minyango deposit.

Minyango, located next door to Caledon's producing Cook mine in Queensland's Bowen Basin, holds 240 million tonnes of resources.

Caledon has commenced a second drilling program to further define the deposit but was held up by restricted drill rig availability and heavy rains. The company now expects to announce the results of the program in the second quarter of 2008.

Caledon still owes $A15.4 million to the Minyango vendors, but has arranged staggered payments with $A5 million paid at the end of November and a further $A10 million due in March and $A5.4 million to be paid by May 31.

Caledon hopes Minyango will increase the company's production in the "near term" to accompany its already producing Cook mine.

Last year Cook produced 255,300t. Since the end of January, Cook has had its Magatar Continuous Mining System up and running and is ramping up to achieve 100,000t per month.

The Magatar continuous haulage system is the only one of its kind in Australia.