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Acquisition · Australia · Coal Mining · Metallurgical Coal
Yancoal Australia agreed to acquire an 80% interest in Queensland’s Kestrel Coal Mine for up to US$2.4 billion, funded by existing cash, a new US$1.2 billion syndicated loan, and future mine cash flows, with completion targeted by late Q3 2026.
This strategic acquisition adds a large, long-life premium metallurgical coal asset, increasing Yancoal’s metallurgical coal sales share to approximately 22% on a pro forma basis. The deal strengthens Yancoal's presence in the Bowen Basin, complementing its Middlemount joint venture and Yarrabee operations.
Kestrel, Australia's largest producing underground coal mine, is projected to have a 2025 saleable output of 5.9 million tonnes and boasts a 25-year mine life underpinned by substantial reserves. The board states this acquisition enhances Yancoal’s production scale, operating cash flow, and strategic standing in premium metallurgical coal markets, serving shareholders’ interests.
The transaction remains subject to regulatory approvals.
