Yancoal Australia has completed its acquisition of an 80% interest in the Kestrel Coal Mine, a major metallurgical coal asset in Queensland’s Bowen Basin. The deal included an upfront cash payment of US$1.85 billion.
Yancoal funded the transaction with available cash and a five-year syndicated loan facility of US$1.2 billion. The agreement also provides for potential future payments of up to US$550 million, depending on benchmark coal prices over the next five years.
Kestrel is a large-scale, long-life underground mine that produces premium hard coking coal. The acquisition increases Yancoal’s scale in Australia and diversifies its portfolio with a greater share of metallurgical coal.
Yancoal will begin recognizing its share of Kestrel’s production and earnings from October 1, 2026.