Yancoal Completes US$1.85b Kestrel Coal Acquisition

Yancoal (ASX:YAL) Australia completed the acquisition of an 80% interest in the Kestrel Coal Mine, a large-scale metallurgical coal asset in Queensland's Bowen Basin.

As announced on 14 April 2026, Yancoal acquired the entire share capital of Kestrel Coal Group Pty Ltd from EMR Capital Advisors Pty Ltd, Kestrel Coal (EMR) Limited, Adaro Capital Limited and related warrant sellers. Upfront cash consideration paid on completion was US$1.85 billion subject to customary completion adjustments, funded through available cash and initial utilisation of a five-year syndicated US$1.2 billion acquisition loan facility. A US$200 million five-year committed working capital facility remains undrawn. Contingent cash consideration of up to US$550 million remains payable if the relevant benchmark coal price exceeds US$225 per tonne (nominal) in any of the first five years after completion. Yancoal will recognise attributable Kestrel production, revenue and earnings from 1 October 2026. Mitsui remains the 20% joint venture partner. A shareholder circular with further details and reports is expected to be dispatched by 23 November 2026.

Contingent consideration remains dependent on future coal prices, and completion adjustments and post-completion facility use to retire KCG debt are still being worked through in the ordinary course.