Energy Resources LLC is to consider an initial public offering in Hong Kong or London as it may more than double its coking coal production this year due to an increase in global demand.

According to Masa Igata, chief executive officer of Frontier Securities, Energy Resources “knows the ability to raise money domestically is limited and needs to look abroad to raise funds.”

Thought G. Adilbish, managing director of MCS Holding LLC, declined to comment on how much the company is seeking to raise in the possible share sale, M. Igata said Energy Resources may need “at least several hundred million dollars” as part of a plan to raise annual production to 10 million metric tons in a few years.

MCS owns more than half of the miner. Other shareholders include the European Bank for Reconstruction and Development. The Mongolian company operates one pit at Ukhaa Khudag in the south of the country, which produced about 1.8 million tons of coking coal last year, and its output may reach 4 million tons this year.

Macquarie Bank Ltd. raised its global estimate for 2010 coking coal demand to 244 million tons from 225 million tons in November.