Yancoal Australia, the Australian-listed subsidiary of Yanzhou Energy, announced its plan to acquire an 80% interest in the Kestrel coking coal mine in Queensland for up to $2.4 billion, further expanding its high-quality coking coal assets outside China.
According to the announcement submitted by Yancoal Australia to the Australian Securities Exchange,the transaction would involve acquiring 100% of the equity in the Kestrel Group to indirectly hold an 80% interest in the Kestrel mine.The consideration comprised a $1.55 billion upfront payment and contingent payments of up to $550 million, with a total consideration cap of $2.4 billion.
The transaction was expected to be completed by the end of the September quarter this year, subject to approval from relevant regulatory authorities. This acquisition represented an important step in Yanzhou Energy's continued deepening of its resource portfolio outside China, helping to further consolidate high-quality coking coal assets.
Expanding Presence in Premium Global Coking Coal Regions
The Kestrel mine is located in the Bowen Basin, Queensland.The basin is one of the world's major coking (metallurgical) coal producing regions,with its coking coal sold to major steel enterprises worldwide. The mine was previously held by a joint venture comprising EMR Capital and Adaro Capital. In 2018, the joint venture acquired the 80% interest in the Kestrel mine from Rio Tinto for $2.25 billion, with the remaining 20% held by Mitsui.
Yancoal Australia is the Australian-listed platform under Yanzhou Energy Group, currently operating multiple thermal and coking coal mines in New South Wales and Queensland.
This acquisition continued the Yanzhou Energy group's ongoing expansion of coal assets in Australia. Upon completion, Yancoal Australia will secure a significant strategic foothold in the Bowen Basin, one of the world's premier coking coal producing regions, further strengthening its position in the global coking coal supply chain.
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