Yancoal Australia said on Tuesday it has agreed to acquire an 80% stake in the Kestrel coking coal mine in Queensland for up to $2.4 billion, a move that strengthens its position as one of the country’s largest coal miners.
Yancoal, which has a market capitalization of about $6.77 billion, will purchase the majority stake in the Bowen Basin-based mine from private equity firm EMR Capital and Alamtri Resources Indonesia.
The remaining 20% is held by Japanese trading house Mitsui & Co, which did not immediately respond to a Reuters request for comment.
The transaction comprises an upfront cash payment of $1.85 billion on completion and up to $550 million in additional annual payments over five years, subject to certain conditions.
Yancoal said it intends to fund the acquisition via a combination of available cash and a $1.2 billion five-year syndicated acquisition loan facility, among other options.
The company, controlled by China’s Yankuang Energy, said the acquisition will strengthen its position in the Bowen Basin, with Kestrel located near Yancoal’s existing Middlemount joint venture and Yarrabee operation.
“The acquisition immediately increases Yancoal’s metallurgical coal exposure to 22% on a pro-forma basis, anchoring the portfolio with premium hard coking coal that remains in strong demand from Asian steelmakers,” said Emanuel Ajay Datt, managing director at fund manager Datt Capital.
Kestrel, the largest producing underground coal mine in Australia, recorded saleable production of 5.9 million tons in 2025, Yancoal said.
EMR Capital CEO Jason Chang described the sale as a “transformational deal that hopefully will be good for relations between the two countries.”
The deal is expected to close by the end of the third quarter of 2026.
EMR and Alamtri had bought the 80% stake in the coal mine from mining giant Rio Tinto for $2.25 billion in 2018.
Yancoal has applied to resume trading on the Hong Kong Stock Exchange on Wednesday, after being halted ahead of the acquisition announcement.
Source: Reuters.com