This article is a sponsored feature from Mining.com.au partner Yari Minerals Limited. It is not financial advice. Talk to a registered financial expert before making investment decisions.
A data sharing agreement has given Queensland explorer Yari Minerals (ASX:YAR) a significant boost in Australia’s largest coal hub, accelerating its path to expanding its resource base.
In June, Yari increased the inferred resources for its Rolleston South Coal Project by 91%, reaching 151 million tonnes. This milestone was achieved by leveraging data from two coal seam gas (CSG) wells drilled by neighbouring State Gas (ASX:GAS).
Yari finalised the acquisition of the 272km2 Rolleston South Project just weeks earlier in May. The project is strategically located in Queensland’s Bowen Basin, within 25km of major coal operations owned by Glencore (LSE:GLEN) and Sojitz (TYO:2768).
The company has since increased the inferred resource by a further 26% to 190 million tonnes, as reported by Mining.com.au.
Spanning 60,000km2, the Bowen Basin is home to Australia’s largest coal reserves, with Queensland producing over 224 million tonnes of coal from 59 active mines in the past 12 months.
The data sharing agreement with State Gas provides Yari with valuable data for no additional cost, reducing the need for expensive drilling and supporting further resource growth.
Managing Director Anthony Italiano highlights that gas explorers conduct extensive work, such as 2D seismic surveys and drilling lateral wells, which exceeds the requirements for coal mining but provides valuable data.
“Thanks to our proximity to State Gas, an active and cooperative coal seam gas company, we can share and leverage each other’s data to enhance our resource model,” Italiano tells Mining.com.au.
New insights reduce exploration costs
Three new coal seam gas (CSG) wells drilled by State Gas within Yari Minerals’ landholding, near the Rolleston South project, have revealed coal seams up to 3.5m thick in the D seam horizon.
Italiano notes that these seams are thicker than anticipated, signalling strong potential for expanding the project’s existing resource.
The data is being integrated into the geological model for the Rolleston South Project. Yari confirms that this new information aligns closely with the project’s resource model, reinforcing the consistency of coal seams within the Bandanna Formation and supporting the potential to grow the inferred resource.
Yari’s immediate priorities include increasing the confidence and size of the Rolleston South resource and conducting metallurgical test work to incorporate semi-soft coking coal resource.
The company is also pursuing regulatory approvals to launch a maiden drilling campaign before the end of 2025. At last month’s Noosa Mining Investment Conference, Yari met with drillers, strategic investors and stakeholders to advance plans for a mining lease in 2026.
“By 2026 we plan to apply for a mining lease over the permits and conduct Feasibility Studies concurrently, aiming for a fully permitted, shovel-ready project,” Italiano explains.
Historical coal quality data from the Rolleston region indicates a low ash (around 8%) coal product with an 85% yield. Yari describes the saleable coal as “export-quality” thermal coal with high volatiles, low sulphur, and a high calorific value. Historical data also suggests the potential to produce semi-soft metallurgical coal.
Open-access rail and port infrastructure boost export potential
Located in the established coal producing Bowen Basin, Yari Minerals’ Rolleston South project benefits from access to critical infrastructure essential for an emerging mining project.
“The Blackwater rail system is just 15km away from our project,” Italiano tells Mining.com.au.
“The rail market is competitive, with operators like Aurizon and Pacific National providing third-party open access. Unlike the closed iron ore rail systems in the Pilbara, the Bowen Basin’s open system allows independent companies to secure rail and port allocation.”
The region’s well established supply chains support mining operations comprehensively. “You get everything you need out there – it’s the full package,” Italiano adds.
The Blackwater rail system services over 14 coal mines in central Queensland. The Rolleston South project, located approximately 275km west of the Port of Gladstone, is well-positioned to leverage one of the world’s largest commodity ports.
In the 2025 financial year, 670 vessels exported 64.3 million tonnes of coal from Gladstone to markets including Brazil, France, Hong Kong, Indonesia and Korea.
Coal dominates Gladstone exports, accounting for about 70% of total throughput, with three coal terminals handling 42 coal types across 84 stockpile zones. About 70% of coal processed is metallurgical coal, a key component in steelmaking.
In the 12 months to May 2025, coal exports totalled $45.8 billion, according to the Queensland Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development.
Queensland proactive approach to mining approvals
Coal remains a cornerstone of Queensland’s economy, contributing $10.5 billion in royalties in the 2023-2024 financial year. Despite a price decline in the 2024-2025, the sector still delivered $5.5 billion in royalties.
Since the Liberal National Party, led by David Crisafulli, took office in October 2024, the approvals process for mining projects has accelerated. Italiano notes that 30 new mining leases have been granted since the change in government.
“The Queensland Government is highly proactive. There’s no limbo delaying approvals,” Italiano says.
Coal demand is expected to remain robust in the short to medium term.
New smelter construction in Southeast Asia is projected to increase steel production, with blast furnace steelmaking – relying on iron ore and metallurgical coal – accounting for about two thirds of new smelter capacity, according to the Australian Government’s June 2025 Resources and Energy Quarterly.
Coal prices are expected to stabilise, with export volumes rising as demand trends upwards. India, in particular, is driving global demand for metallurgical coal imports.
“India aims to double its steel production to 300 million tonnes from 149 million tonnes in 2024, and it will need to import metallurgical coal to achieve this,” Italiano explains.
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Images: Yari Minerals
