INR chief executive Gary Rogliano told the Australian Financial Review the company planned to use $US75 million of the float proceeds to expand its West Virginian operations, which produce about 2.72 million tonnes per annum but can be lifted to 5Mtpa.
A possible listing in New York, London or Toronto was not considered as an Aussie float would provide a scrip-based currency to help buy into local projects, while investors were keen for more coal offerings on the ASX.
INR is reportedly keen on development projects in iron ore, manganese and other steelmaking commodities, as well as coal.
The company is selling its high-volatile coking coal for about $US180 a tonne on the spot market at production cash costs of $55/t and royalty and rail costs of $44/t, AFR reported.
The company made its maiden shipment of 72,000 tonnes of central Appalachian hard coking coal to China in February and is seeking to kick off production of its 1Mtpa Lower War Eagle mid-volatile coking coal project in Wyoming County around mid-2011.
INR’s Powellton underground and Dingess Branch Chilton metallurgical coal mines in West Virginia are expected to hit full output this year.
The Toney’s Fork surface thermal coal mine is benefiting from a new Saunders preparation plant and a 110-car train load-out facility.
INR boasts reserves and resources exceeding 300Mt of coal.
Production is about two-thirds coking coal and one-third thermal coal.
The ASX listing is reportedly expected by mid-2010.
INR changed its name from Imagin Natural Resources in September.