The first shipment was made on March 25 and delivered via the existence of an onsite rail delivery system connected to the mine.

VHGI said this aspect enabled the supply of the coal to be delivered to its customers in a more cost efficient and timely manner.

It said the rail delivery system gave it an advantage over many competitors by allowing the Landree mine to expand its sale base far beyond the Midwest Coal Basin, with the potential to even tap into overseas markets.

The deal allows IPL to purchase 1 million tons of coal from Landree as well as an option to obtain an additional 180,000 tons in 2013 and 2014.

The mine was previously owned by the Lily Group prior to VHGI acquiring the company in mid-January this year.

Newly appointed Landree mine executive vice president Ron Hutchcraft said the first shipment was a major milestone for VHGI Holdings.

“This first shipment proves that our delivery system is now up and running, we can deliver our coal to IPL and other customers as promised in our agreements,” he said.

“Furthermore, it's a big day for our employees who have worked extremely hard and our vendors who have stayed with us in some very trying times over the past couple of months.”