The trio, who formed the nucleus of the Felix group that was sold to Chinese Yanzhou Coal Mining for $3.5 billion earlier this year, chipped in $25 million each for White Energy shares in the August capital raising.

Since the raising, their White Energy shares – purchased for $2.50 – have risen in value to yesterday’s closing price of $4.05, delivering a handsome paper profit.

SA Coal directors have also done well out of the merger, with director Hans Mende making a paper profit of $19.3 million from the $57.30 subscription rights issued to former shareholders of SA Coal.

The new board aims to transform White, known for its patented coal upgrading technology, into a mid-tier coal producer.

“The calibre of these new appointments, combined with our unique coal upgrading technology, substantial cash reserves and stand-alone coal assets, provides an outstanding position for future growth,” Duncan said.

SA Coal’s Lake Phillipson coal deposit in South Australia holds 515 million tonnes of sub-bituminous coal resources.

Coal from the resource in EL3386 could be transported to the Adelaide-Darwin rail line and exported through ports at Darwin, Adelaide and Whyalla.

Flannery is also the managing director of Yanzhou subsidiary Yancoal Australia, and pocketed more than $500 million from the takeover of Felix.