The company, whose shares were thinly traded, will focus on supplying thermal coal into the power generation markets of Asia with the $A7 million it raised in its initial public offering.

Indus’ MukoMuko project, which is situated in the Bengkulu province of Western Sumatra, covers 2,337ha of which approximately 1485ha (63%) of the concession encompasses the coal bearing Lemau formation and approximately 413ha (19%) of the secondary prospective Bitunan coal bearing formation.

There are multiple operating mines spanning the Lemau formation with a similar geological profile to the MukoMuko project, according to Indus.

The Lemau formation typically contains a coal rank (calorific value) of between 6000 – 7000 kcal/kg and a sulphur content varying between 0.59% and 3.64%. This formation is known to have multiple seams varying in width from 1.5 to 3.5m.

Coal recovered from the MukoMuko Project has been assayed at 5700 to 5800 kcal/kg with low moisture, ash and sulphur content.

This product is one of the higher quality coals and can be categorised as sub-bituminous and is well within export standards for steam coal, the company said.

The executive chairman of Indus is Scott Douglas, who was, until recently, executive chairman of Resource Generation Limited, responsible for the acquisition and subsequent delineation of a six billion tonne coal resource in South Africa.

He will be join on the board by John Kenny as an executive director. Kenny has been a director of a number of ASX listed public companies and is currently on the board of resource company Gippsland Ltd.

Shares in Indus Coal were last traded at A27c.