China-Backed Yancoal Australia to Buy Kestrel Coal Mine Stake For Up to $2.4 Billion — Update

By Rhiannon Hoyle

Yancoal Australia said it has agreed to buy an 80% stake in the Kestrel steelmaking coal mine in Australia's Queensland state for up to $2.4 billion, bolstering its position as one of the country's top coal miners.

Yancoal, which is majority owned by China's Yankuang Energy Group, will acquire the stake from private equity firm EMR Capital and Adaro Capital, a unit of Indonesia's PT Adaro Andalan Indonesia, the coal miner said in a statement to Australia's stock exchange.

The deal includes an upfront cash payment of $1.85 billion upon completion, targeted for toward the end of the third quarter of 2026, Yancoal said. It also includes payments valued at up to $550 million in total over five years, linked to average benchmark prices.

The Kestrel mine, located in Queensland's Bowen Basin, is one of the largest underground metallurgical-coal operations in production in Australia. Coal from the mine is sold mostly into Asian steelmaking markets.

The acquisition is "a strong strategic fit" for Yancoal, said Chief Executive Sharif Burra. It will give Yancoal greater scale and a more diversified business, by adding more steelmaking coal to its business, which relies mostly on thermal coal used in power generation for its profits.

"The acquisition positions us to deliver greater value to our shareholders and consolidates Yancoal's position as a leading Australian coal miner," said Burra.

Yancoal said it intends to fund the acquisition with its own cash, a $1.2 billion loan facility and cash flow generated by the enlarged business.

EMR and Adaro bought the stake in 2018 from giant miner Rio Tinto for $2.25 billion. Japan's Mitsui owns the remaining 20% stake in the operation.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

April 14, 2026 19:36 ET (23:36 GMT)