Yancoal Australia has successfully acquired an 80 per cent interest in the Kestrel coal mine in Queensland’s Bowen Basin.
The coal miner is acquiring the entire share capital of Kestrel Coal Group (KCG), with an upfront cash consideration of US$1.85 billion paid on completion, subject to customary completion adjustments.
Chief executive officer of Yancoal Sharif Burra said that the development represents a “strong strategic fit” for Yancoal, adding a high-quality, long-life metallurgical coal asset to its portfolio.
“Kestrel delivers increased scale and diversification to Yancoal’s portfolio; it adds a premium metallurgical coal to our product mix,” Burra said.
“The acquisition positions us to deliver greater value to our shareholders and consolidates Yancoal’s position as a leading Australian coal miner.”
The transaction was completed with EMR Capital Advisors, Kestrel Coal (EMR), Adaro Capital (ACL) and EMR Capital Management, following Yancoal’s announcement of its acquisition intention on April 14, 2026.
Yancoal delivered strong performance in the period since this announcement, building off the fact that in the same month, the Kestral coal mine delivered 5.9 million tonnes of saleable production on a 100 per cent basis in 2025; likewise, it currently boasts a long operational future with a 25-year mine life supported by 164 million tonnes of marketable coal reserves and an additional 406 million tonnes in resources.
Just a week later, Yancoal reported that it maintained a steady March quarter, with 15.0 million tonnes (Mt) of run-of-mine (ROM) coal production on a 100 per cent basis, alongside 11.9Mt of saleable coal production.
Then in August, Yancoal also announced record first-half production of attributable saleable coal at 19.8Mt, a five per cent increase on the 18.9Mt produced during the same period in 2025.
At present, the US$1.85 billion cash consideration was funded through a combination of available cash and an initial utilisation of the five-year syndicated US$1.2 billion acquisition loan facility, Yancoal said.
A US$200 million, five-year committed working capital facility to support Yancoal’s liquidity requirements remains undrawn at this time.
“We have worked closely with EMR, Adaro and KCG management over the past months to facilitate integration of Kestrel into the Yancoal portfolio,” Burra said.
Payment of the contingent cash consideration up to a maximum of US$500 million remains dependent upon the relevant benchmark coal price exceeding US$225 per tonne (nominal) in any of the first five years following completion.
Yancoal said that it will recognise its interest in the attributable Kestrel production, revenue and earnings from October 1.
“We look forward to working closely with the committed Kestrel employees, and Mitsui, our joint venture partner and owner of 20 per cent of Kestrel, to continue to add value to the mine, local communities and stakeholders,” Burra said.
