Jakarta. Australian coal producer Yancoal Australia Ltd has completed its acquisition of Kestrel Coal Group Pty Ltd, which owns an 80% stake in the Kestrel coal mine in Queensland’s Bowen Basin, following the sale of the stake by Adaro Andalan Indonesia (IDX: AADI) through its subsidiary Adaro Capital Limited (ACL).

The transaction involved EMR Capital Advisors Pty Ltd, Kestrel Coal (EMR) Limited, ACL and EMR Capital Management Limited. ACL is a subsidiary of AADI.

Yancoal announced the acquisition agreement on April 14, 2026. It paid $1.85 billion in cash at completion, subject to customary closing adjustments.

The acquisition was funded through a combination of Yancoal’s cash reserves and an initial drawdown from a $1.2 billion five-year syndicated acquisition facility.

Yancoal also has access to a committed $200 million five-year working capital facility, which remains undrawn.

In addition to the upfront payment, Yancoal could pay up to US$550 million in contingent consideration. The payment will depend on the relevant benchmark coal price exceeding US$225 per metric ton on a nominal basis in any of the first five years following completion.

Yancoal will begin recognizing its share of Kestrel’s production, revenue, and earnings from Oct. 1, 2026.

Yancoal CEO Sharif Burra said the acquisition was strategically aligned with the company’s existing business and would add a high-quality, long-life metallurgical coal asset to its portfolio.

“Kestrel positions us to deliver greater value to our shareholders and strengthens Yancoal’s position as one of Australia’s leading coal mining companies,” Burra said in a statement Thursday.

He said Kestrel would increase the scale and diversification of Yancoal’s portfolio while raising the proportion of premium metallurgical coal in its product mix.

Yancoal will now integrate Kestrel with the mine’s management and workforce. It will also work with Mitsui, its joint-venture partner, which will retain a 20% stake in Kestrel.

Yancoal plans to send a shareholder document by Nov. 23, 2026, at the latest. The document will provide further details of the acquisition, including an accountant’s report, a competent person’s report and a valuation of Kestrel Coal Group.

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