APAC has exploration and mining rights to almost 70,000 hectares of land in the coal-rich East Kalimantan region of Indonesia, through subsidiary PT Batubara.

While APAC has so far explored less than 10% of the 68,360ha concession, it has confirmed a JORC compliant resource of 5.1 million tonnes of thermal coal: 1.4Mt inferred and 3.7Mt indicated.

The concession is well located in terms of infrastructure, with an access road, stockpile area and loading jetty all in close proximity. APAC said this would significantly reduce the cost of coal production.

“APAC Coal has entered into an exciting phase of its development, and with the capital from the IPO proceeds we will be able to produce thermal coal from the new mine which is currently in pre-production phase," APAC chairman Paul Piercy said.

Piercy said coal produced from the mine will be sold principally on the domestic energy market, with the intent to enter the international export market quickly.

“The company also plans to develop a one-stop centre for coal, encompassing crushing, blending and stockpiling which will reduce costs substantially," he said.