Published by Global Banking & Finance Review®
Posted on April 14, 2026
3 min readLast updated: April 14, 2026
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Yancoal Australia is acquiring an 80% stake in the Kestrel coal mine in Queensland for up to $2.4 billion, bolstering its footprint in the Bowen Basin alongside existing operations. Kestrel, the country’s largest underground coal producer, yielded 5.9 mt of saleable coal in 2025.
By Kumar Tanishk, Melanie Burton and Sneha Kumar
April 14 (Reuters) - 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.
(Reporting by Kumar Tanishk, Sneha Kumar in Bengaluru and Melanie Burton in Melbourne; Editing by Rashmi Aich, Sonia Cheema and Jonathan Ananda)
Yancoal Australia is acquiring the 80% stake in the Kestrel coal mine.
Yancoal will pay up to $2.4 billion for the 80% stake in Kestrel.
The stake is being acquired from EMR Capital and Alamtri Resources Indonesia.
Japanese trading house Mitsui & Co owns the remaining 20% stake.
The Kestrel coal mine is located in the Bowen Basin, Queensland, Australia.
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