Yancoal to Acquire Majority Stake in Queensland's Kestrel Coal Mine

Yancoal Australia Ltd has announced an agreement to acquire an 80% interest in the Kestrel Coal Mine in central Queensland for up to US$2.4 billion (A$3.36 billion). The transaction, pending regulatory approvals, is expected to be completed toward the end of the third quarter of this year.

The mine, which employs more than 800 people and produces metallurgical coal for steelmaking, will see its remaining 20% stake retained by Mitsui Coal.

Transaction Details

• Acquirer: Yancoal Australia Ltd.
• Asset: An 80% interest in the Kestrel Coal Mine.
• Location: Approximately 40 kilometers north of Emerald, Queensland.
• Price: Up to US$2.4 billion (A$3.36 billion).
• Timeline: Completion targeted for late Q3 2024, subject to regulatory approvals.
• Ownership Post-Sale: Yancoal (80%); Mitsui Coal (20%).

About the Kestrel Mine

The Kestrel Coal Mine is described as one of Australia's largest producing underground coal operations.

• Production: The mine produced almost 6 million tonnes of coal in 2025.
• Product & Market: It produces metallurgical coal, used in steelmaking, which is primarily exported to Asia via the port of Gladstone.
• Reserve Life: The mine has a projected operational lifespan of 25 years.
• Ownership History: The mine is currently held in a joint venture between EMR Capital and Adaro Energy. This consortium acquired the asset from Rio Tinto in 2018 for US$2.25 billion.

Perspectives on the Deal

Chief Executive Sharif Burra described the purchase as a "strong strategic fit" for the company. The company cited a promising long-term outlook for metallurgical coal, driven by sustained steel demand growth in Asia and constrained global supply.

A Yancoal spokesperson stated the company is working with the sellers and site management on communications to minimize disruption for the workforce during the ownership transition.

Chief Executive Jason Chang said the company was pleased to see the mine go to a "very capable" operator. Chang noted that production at the mine has increased by 20% since 2018.

He also expressed hope that the Queensland government would review its coal royalty scheme, stating, "We did lose quite substantial value as a result of the imposition of the royalties."

Queensland Mines Minister Dale Last stated the sale represents a "vote of confidence" in the state's coal industry and that "Queensland is open for business."

Queensland Conservation Council acting director Anthony Gough said, "Any amount of coal that comes out of the ground pushes us further and further away from a safe climate."

Gough expressed disappointment that resources companies were not planning for a transition to future-proof industries. The Council referenced federal treasury modeling from last year that predicted the value of Australian coal and gas exports would fall by about 50% by 2035.

Additional Context

• Yancoal's Profile: Yancoal is majority-owned by Yankuang Energy Group, a subsidiary of the Chinese state-owned Shandong Energy Group. Its portfolio includes interests in at least 10 mines in Australia.
• Resource Quality: According to the Queensland government, the Bowen Basin, where Kestrel is located, contains some of the world's highest-grade metallurgical coal.