Yancoal Australia agreed on 14 April to acquire an 80% interest in the Kestrel Coal Mine in Queensland's Bowen Basin for up to US$2.4bn, buying Kestrel Coal Group from funds managed by EMR Capital and from Adaro Capital.
Why Yancoal Australia Ltd is buying Kestrel Coal Group (80% of Kestrel Coal Mine)
Yancoal said Kestrel produces premium hard coking coal in high demand from steelmakers and lies near its Middlemount and Yarrabee operations. The deal would lift metallurgical coal to 22% of its pro forma sales volumes.
“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.”
Deal terms and financing
Yancoal agreed to pay US$1.85bn in cash at completion and up to US$550m more, paid annually over five years, in any year the average published price for Platts Premium Low Vol hard coking coal exceeds a set threshold. Funding comes from cash on hand, a US$1.2bn five-year syndicated acquisition loan and, for the contingent payments, future cash flow, with a separate US$200m working capital facility.
Regulatory approvals and timing
Completion required regulatory approvals and was targeted for the end of the third quarter of 2026. Yancoal told the ASX on 1 October 2026 that the acquisition had completed and that it would recognise Kestrel's earnings from that date.
Market context
Kestrel recorded saleable production of 5.9Mt in 2025 on a 100% basis and has about 164Mt of marketable coal reserves, supporting a 25-year mine life. Mitsui holds the remaining 20% of the joint venture.
