[SMM Coal Flash] Yancoal-Glencore’s Hunter Valley Operations Extension Approved to 2045

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.

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.

Coal accounted for the largest share of strategic commodity exports monitored by PT Danantara Sumberdaya Indonesia (DSI), with the overall monitored export value reaching US$25.5 billion. The monitoring forms part of Indonesia’s new strategic commodity trade governance framework, which is designed to improve transparency across export transactions and strengthen oversight of pricing, invoicing and foreign-exchange proceeds. Under the framework, DSI tracks transaction information while producers and exporters retain their commercial role in negotiating prices, specifications and contracts with overseas buyers. Coal is among the initial commodities covered by the system, alongside other strategic Indonesian exports, reflecting its significant contribution to the country’s commodity trade.