Yancoal Australia Completes US$1.85 Billion Acquisition of 80% Interest in Kestrel Coal Mine

en.Wedoany.com Reported - On October 5, Yancoal Australia announced the completion of its acquisition of 100% equity in Kestrel Coal Group, thereby obtaining an 80% interest in the Kestrel Coal Mine in Queensland, Australia. The cash consideration paid at completion was US$1.85 billion, subject to customary completion adjustments. Yancoal Australia has recognized its corresponding share of Kestrel Coal Mine's production, revenue, and earnings from October 1.

The initial payment was funded by Yancoal Australia's existing cash and a US$1.2 billion, 5-year syndicated acquisition loan. The company has also secured a US$200 million, 5-year committed working capital facility, which has not yet been drawn. The transaction also includes a contingent cash consideration of up to US$550 million, payable under agreed conditions if the annual average price of the Platts Premium Low Vol Hard Coking Coal Australia FOB index exceeds US$225 per tonne in any of the first 5 years following completion.

The Kestrel Coal Mine is located in the Bowen Basin, Queensland, with the remaining 20% interest held by Mitsui's Mitsui Kestrel Coal Investment. The mine is primarily a metallurgical coal operation, with saleable coal production of 5.9 million tonnes in 2025; on a 100% interest basis, it has approximately 164 million tonnes of saleable coal reserves, approximately 406 million tonnes of coal resources, and an estimated mine life of approximately 25 years.

On April 14, Yancoal Australia signed binding transaction documents with sellers including EMR Capital, Kestrel Coal (EMR), and Adaro Capital to acquire all equity in Kestrel Coal Group. At signing, the total consideration was capped at US$2.4 billion, comprising a US$1.85 billion initial payment and up to US$550 million in contingent consideration, with completion subject to conditions precedent including relevant regulatory approvals in Australia and China.

As of July, Yancoal Australia had obtained approval for the transaction from the Australian Foreign Investment Review Board and continued to advance the remaining conditions to completion. Following completion in October, the Kestrel Coal Mine has been formally incorporated into Yancoal Australia's asset portfolio, and the company will release its third-quarter production report on October 20, 2026.