Yancoal Australia has reached an agreement to purchase an 80% interest in Queensland’s Kestrel Coal Mine from a group including EMR Capital and Adaro Capital.

This US$2.4 billion deal involves an upfront payment of US$1.85 billion, plus future payments totaling up to US$550 million based on coal price benchmarks. Yancoal will fund the acquisition through cash reserves and a US$1.2 billion loan facility.

This transaction increases Yancoal’s share in the metallurgical coal sector to 22% and adds a high-capacity asset that produced 5.9 million tons in 2025.

Subject to regulatory approvals, the company expects to close the deal by the third quarter of this year, subsequently partnering with Mitsui, which has the remaining 20% stake.