Yancoal successfully completes the acquisition of an 80% interest in the Kestrel Coal Mine

Yancoal Australia Ltd has announced that it has successfully completed the transaction with EMR Capital Advisors Pty Ltd, Kestrel Coal
(EMR) Limited, Adaro Capital Limited, and EMR Capital Management Limited.

As announced on 14 April 2026, Yancoal will acquire the entire share
capital of Kestrel Coal Group Pty Ltd, which holds an 80% interest in the Kestrel Coal
Mine, a large-scale, long-life metallurgical coal asset located in Queensland’s
Bowen Basin.

The upfront cash consideration paid on completion was US$1.85 billion subject to customary
completion adjustments. The consideration was funded through a combination of available
cash and an initial utilisation of the five-year syndicated US$1.2 billion acquisition loan
facility.

A US$200 million, five year committed working capital facility to support Yancoal’s
liquidity requirements remains undrawn at this time.
Payment of the contingent cash consideration up to a maximum total of US$550 million
remains dependent upon the relevant benchmark coal price exceeding US$225/t
(nominal) in any of the first five years following completion.

Yancoal will recognise its interest in the attributable Kestrel production, revenue and earnings
from 1 October 2026.

As disclosed in the announcement on 14 April 2026, Yancoal expects to dispatch to
shareholders for their information a circular containing, including further details of the
Acquisition and accountants’ reports, competent person’s report and valuation report on KCG
by 23 November 2026.

Mr Sharif Burra, CEO of Yancoal, said:
“The acquisition of an 80% interest in the Kestrel Coal Mine represents a strong strategic fit
for Yancoal and adds a high-quality, long-life metallurgical coal asset to our portfolio. Kestrel
delivers increased scale and diversification to Yancoal’s portfolio; it adds a premium
metallurgical coal to our product mix. The acquisition positions us to deliver greater value to
our shareholders and consolidates Yancoal’s position as a leading Australian coal miner.

“We
have worked closely with EMR, Adaro and KCG management over the past months to facilitate
integration of Kestrel into the Yancoal portfolio. We look forward to working closely with the
committed Kestrel employees, and Mitsui, our joint venture partner and owner of 20% of
Kestrel, to continue to add value to the mine, local communities, and stakeholders”.

Read the article online at: https://www.worldcoal.com/coal/05102026/yancoal-successfully-completes-the-acquisition-of-an-80-interest-in-the-kestrel-coal-mine/