Yancoal Australia has signed an agreement with EMR Capital Advisors, Kestrel Coal, Adaro Capital and EMR Capital Management to acquire an 80% interest in the Kestrel Coal Mine, with the transaction valued at up to $2.4bn (A$3.36bn).
Kestrel is a major underground metallurgical coal asset in Queensland’s Bowen Basin.
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This transaction involves an initial payment of $1.85bn, with potential additional payments of up to $550m over five years, contingent on coal price benchmarks.
Yancoal plans to utilise existing cash reserves and a $1.2bn loan facility to finance the deal, with provisions for its liquidity needs covered by a separate $200m facility.
The acquisition is expected to enhance the company’s production capacity and diversify its portfolio, expanding its share in the metallurgical coal sector to 22%.
In 2025, Kestrel’s output reached 5.9 million tonnes (mt) of coal and it also has substantial reserves and resources.
Positioned near Yancoal’s existing operations, Kestrel offers strategic benefits.
The completion of this acquisition is contingent upon regulatory approvals, with a target date towards the end of the third quarter of 2026.
Yancoal’s management considers the deal favourable for the company’s shareholders.
Yancoal CEO Sharif Burra said: “The proposed acquisition of 80% of the Kestrel Coal Mine represents a strong strategic fit for Yancoal and adds another high-quality, long-life mine to our portfolio.
“Kestrel delivers increased scale and diversification to Yancoal’s portfolio and is expected to contribute premium metallurgical coal into our product mix. The acquisition positions us to deliver greater value to our shareholders and consolidates Yancoal’s position as a leading Australian coal miner.
“We look forward to working closely with Mitsui, the joint venture partner and owner of 20% of Kestrel, in the future as co-owners of Kestrel to continue to add value to the mine, local communities and stakeholders.”
