Yancoal Australia Ltd (“Yancoal”) confirmed on 1 October 2026 that it has closed the acquisition of 100% of Kestrel Coal Group Pty Ltd, securing an 80% interest in the Kestrel Coal Mine, a large-scale, long-life metallurgical coal operation in Queensland’s Bowen Basin.

The transaction, first announced on 14 April 2026, carries an upfront cash consideration of US$1.85 billion, subject to customary completion adjustments, including deduction of a US$40.00 million signing deposit. The purchase was financed through a mix of existing cash reserves and an initial drawdown from a five-year syndicated US$1.20 billion acquisition loan facility. An additional US$0.20 billion five-year committed working-capital facility remains undrawn, preserving liquidity.

A contingent cash payment of up to US$0.55 billion may be triggered should the relevant benchmark coal price exceed US$225 per tonne (nominal) in any of the first five years post-completion. Yancoal will begin recognising its attributable production, revenue and earnings from Kestrel as of 1 October 2026.

The sellers include EMR Capital Advisors Pty Ltd, Kestrel Coal (EMR) Ltd and Adaro Capital Ltd, with EMR Capital Management Ltd and Adaro Capital Ltd also divesting warrants in KCG. Mitsui retains its existing 20% interest in the mine.

A shareholder circular providing detailed information on the acquisition, together with accountants’ and competent person’s reports, is scheduled for dispatch by 23 November 2026.

Chief Executive Officer Sharif Burra described the deal as a strategic expansion that enhances both the scale and product mix of Yancoal’s portfolio, adding premium metallurgical coal exposure and reinforcing the company’s position as a leading Australian coal producer.