This is the second Australian company to move into the US coal market this month, after Australian coal stalwart Ken Talbot took a 19.9% stake in Pennsylvania coal miner PBS Coals.

The deal would see the Western Australia-based explorer get its hands on two operating coal mines in Kentucky, which are currently producing 26,000 tonnes of coal a month.

Bathurst said in a statement to the Australian Securities Exchange the current resource position of C&R was “modest” but was a reflection of a current operational module which is to only prove up sufficient resources for six to 12 months of production at a time.

The company said it plans to build a “substantial” coal resource inventory in the Appalachian Basin through expansion of current projects as well as further acquisitions.

C&R has leases covering coal fields over four project areas in Eastern Kentucky – Morgan, Feds Creek, Mill Creek and Gibraltar.

Mining permits have been secured on the Morgan, Feds Creek and Mill Creek projects and a permit is expected to be granted on Gibraltar in the coming weeks.

The Morgan project has a proven resource of 265,000t of thermal coal with more tonnes existing within the project area and an application has been placed to extend the life of the mine.

Feds Creek is a coking coal project with 121,000t of proven reserves and a further three years of a mineral resource at 370,000t.

No ore reserves have been estimated at the Mill Creek or Gibraltar projects.

The US is the world’s second largest producer of coal after China, producing 990 million tonnes in 2006, followed by India and Australia, according to the World Coal Institute.