Yancoal has taken a major step in strengthening its position in the metallurgical coal market with the acquisition of an 80 per cent stake in the Kestrel coal mine in Queensland’s Bowen Basin.
The company confirmed it will acquire a 100 per cent interest in Kestrel Coal Group, which holds the 80 per cent stake in the Kestrel joint venture, for up to $US2.4 billion ($A3.36b).
The deal includes an upfront payment of $US1.85 billion, with a further contingent consideration of up to $US550 million linked to future coal prices over a five-year period.
The Kestrel operation is a key asset in Australia’s coal sector, recognised as the country’s largest producing underground coal mine. In 2025, it delivered 5.9 million tonnes of saleable production on a 100 per cent basis.
Strategically, the acquisition also consolidates Yancoal’s footprint in the Bowen Basin, with Kestrel located near the company’s existing Middlemount joint venture and Yarrabee operation. The company said this proximity offers potential operational synergies and efficiencies.
Yancoal’s board said it believes the transaction terms are fair and in the best interests of shareholders, positioning the company for stronger production and cash flow growth in the years ahead.
“The acquisition positions us to deliver greater value to our shareholders and consolidates Yancoal’s position as a leading Australian coal miner,” Yancoal chief executive officer Sharif Burra said in a statement.
“We look forward to working closely with Mitsui, the joint venture partner and owner of 20 per cent of Kestrel, in the future as co-owners of Kestrel to continue to add value to the mine, local communities and stakeholders”.