Yancoal Australia (ASX:YAL) has completed its acquisition of an 80% interest in the Kestrel Coal Mine for US$1.85 billion ($2.6 billion).
The company acquired the entire share capital of Kestrel Coal Group. Kestrel holds the 80% stake in the metallurgical coal asset located in Queensland’s Bowen Basin.
The transaction was with EMR Capital Advisors, Kestrel Coal (EMR), Adaro Capital, and EMR Capital Management.
Yancoal funded the upfront cash consideration through available cash and an initial utilisation of its five-year syndicated US$1.2 billion acquisition loan facility. The company also has access to a US$200 million, five-year committed working capital facility, which remains undrawn.
The deal includes contingent cash consideration of up to US$550 million. The contingent is payable should benchmark coal prices exceed US$225 per tonne in the first five years following completion.
Yancoal will recognise its interest in attributable Kestrel production, revenue, and earnings from 1 October 2026.
CEO Sharif Burra says the acquisition represents a strong strategic fit for the company.
“The acquisition of an 80% interest in the Kestrel Coal Mine represents a strong strategic fit for Yancoal and adds a high-quality, long-life metallurgical coal asset to our portfolio,” Burra remarks.
“Kestrel delivers increased scale and diversification to Yancoal’s portfolio — it adds a premium metallurgical coal to 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.”
The company will work alongside Mitsui (TYO:8031), which owns the remaining 20% interest in Kestrel as joint venture partner.
Burra notes the company has worked closely with the vendors and Kestrel management over recent months to facilitate integration.
Yancoal expects to dispatch a circular to shareholders containing further details of the acquisition, including accountants’ reports, competent person’s report, and valuation report on Kestrel Coal Group by 23 November 2026.
The Kestrel acquisition adds a premium metallurgical coal product to Yancoal’s existing portfolio and provides increased scale and diversification for the Australian coal miner.
Yancoal Australia is an Australian coal producer advancing a portfolio of thermal and metallurgical coal assets across New South Wales, Queensland, and Western Australia.
Write to JC Villarba at Mining.com.au
Images: Yancoal Australia
