The company, to be called Australian Premium Resources, controls estimated coking coal resources of about 1 billion tonnes. The centrepiece of the APR asset portfolio is the 2 million tonnes per annum $60 million open cut Coppabella mine in central Queensland.

Talbot said he has timed the float to coincide with a number of market indicators predicted to unfold in the coking coal industry, including improved demand in the Japanese steel industry on the back of the Asian recovery, although he acknowledges that 2000 will be a tough year in relative terms.

“The other key influence on the supply side is Germany, which is now accelerating the phasing out of their subsidised mines. I think those things add up to good news. We want to be seen as ahead of these changes,” Talbot said.

Presentations have been made to several broking firms including Morgans Stockbroking, Wilson HTM, JB Were & Son, ABN Amro, Ord Minnett and HSBC regarding underwriting and managing the float. Talbot said the brokers were enthusiastic about what amounts to Australia’s first pure coal mining float for several years because of the company’s broad strategy.

“Our strategy is not to buy mature assets, rather we are buying quality undeveloped assets and developing those into operating mines with a very low capital base at a very low capital cost,” Talbot said.

About half of the shares were expected to be offered to retail investors, while the remainder would be shared among the owners of the Coppabella joint venture — Talbot’s company Macarthur Coal Pty Ltd (35%), American Metals and Coal International (35%), Chinese International Trust and Investment Corp (CITIC) (10%), Marubeni Corp (7.5%), Nissho Iwai Corp (7.5%) and Kawasaki Steel Corp (3%).
Talbot said what the company brings to the market was a balanced portfolio of operating assets and assets yet to be developed. Coppabella hosts a resource base of around 500 million tonnes, and annual throughput capacity is planned to be increased from current levels of 2Mtpa to 3Mtpa by around the same time APR hopes to list on the Australian Stock Exchange. Ultimate capacity is probably going to be expanded to 4Mtpa.

One of APR’s prime undeveloped assets is the Moorvale lease, 20km south-west of Coppabella, which the company said will be the subject of a feasibility study beginning some time later next year.

“Between Coppabella and Moorvale we will have a combined capacity of 7Mtpa, which is not inconsequential. In addition, we have a third project called Olive Downs that is still at an exploration stage and we’ll continue to explore that,” Talbot said.

Talbot said Moorvale and Olive Downs, 30km to the south-west, are an extension of the Bowen Basin.