The Queensland Government is backing the state’s resource workers by supporting the sale of the Kestrel Coal Mine — the largest producing underground coal mine in Australia.
As previously reported, Yancoal Australia (ASX:YAL) entered into a binding sale and purchase agreement to acquire an 80% stake in Kestrel Coal Group for US$2.4 billion ($3.36 billion).
The total consideration includes a cash payment of US$1.85 billion, which is payable on completion of the sale, and contingent cash consideration of up to US$550 million.
The deal is expected to secure the long-term future of the underground mine, more than 800 direct jobs, and thousands of in-direct jobs associated with the operation.
It comes off the back of Argo Queensland’s investment into Broadlea, Carborough Downs, and Ironbark mines, as well as the $314.9 million expansion of the Ensham Coal Mine near Emerald, which combined secures the future of a further 1,700 jobs.
Minister for Natural Resources and Mines Dale Last says the Yancoal deal was a vote of confidence in Queensland’s coal assets.
“I have made it clear to the sector and the investment community that we are open for business, we have a stable operating environment, and we will throw our support behind those companies who want to do business here,” Last says.
Queensland’s coal sector
As of May 2025, Queensland’s coal exports totalled $45.8 billion in the last 12 months, employing more than 27,000 workers and contributing $5.5 billion in coal royalties.
The state is home to some of the largest coal reserves in the world, producing more than 224 million tonnes from across 59 active mines as of May 2025. Of this, 61% was metallurgical coal and 39% thermal coal.
Metallurgical coal is essential for steel production. It is a key input in blast furnaces and essential to construction, infrastructure, and manufacturing.
Thermal coal is used to generate electricity and provide heat. It plays a key role in powering homes, businesses, and industry in Australia and internationally.
According to the Minerals Council of Australia, Australia’s economy relies on coal as a source of affordable, reliable electricity.
In 2022–23, coal supplied 62.6% of electricity to the national electricity market. Meanwhile gas supplied 4.5%, hydro supplied 8.3%, and other renewable energy supplied 24.1%.
Global coal demand rose to a new all-time high of 8.8 billion tonnes in 2025, as reported by the International Energy Agency (IEA). This increase comes as consumption rises in countries such as China, India, and Indonesia.
China accounts for 56% of global coal consumption, almost 30% more than the rest of the world combined. One of every three tonnes of coal consumed globally is used in Chinese power plants, making China and its power sector the largest single driver of global coal demand.
Write to Aaliyah Rogan at Mining.com.au
Images: Queensland Government
