[SMM Coal Flash] White Energy to Acquire South Galilee Coal Project

Yancoal Australia has completed the acquisition of Kestrel Coal Group, which holds an 80% interest in the Kestrel metallurgical coal mine in Queensland’s Bowen Basin, for US$1.85 billion. The transaction was completed on October 1, 2026, after all conditions under the April 14, 2026 sale and purchase agreement were met. The upfront cash consideration was US$1.85 billion, with up to a further US$550 million payable depending on benchmark coal prices. Kestrel is approved to operate until 2033, with some reserves potentially mined until 2050. All production is exported through Gladstone Port, with India as the largest destination.

The New South Wales Independent Planning Commission has approved the mine-life extension of Hunter Valley Operations (HVO), jointly owned by Yancoal and Glencore, allowing the operation to continue until 2045, subject to federal environmental approval expected by December 2026. The revised plan allows around 429 million tonnes of additional coal extraction. HVO produces mainly thermal coal and semi-soft metallurgical coal. HVO North was previously due to cease operations in 2026, while HVO South was approved to operate until 2030.

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has approved 95% of coal mining companies’ 2026 RKAB applications, according to ESDM Director General of Mineral and Coal Tri Winarno.The ministry expects Indonesia’s coal production to reach around 720 million tonnes in 2026, with the forecast unchanged despite the ongoing RKAB approval process.