Gilbert + Tobin is advising Yancoal Australia Limited (Yancoal) on its proposed acquisition of an 80% interest in the Kestrel coal mine (Kestrel), a tier-one underground metallurgical coal mine in Queensland, for up to USD2.4 billion, comprising upfront consideration of USD1.85 billion and contingent consideration of up to USD550 million based on coal price performance.
Yancoal is a leading coal producer with a diversified portfolio of assets across Australia. The proposed acquisition of the 80% interest in Kestrel is from a consortium including private equity firm EMR Capital and Adaro Capital Limited.
Kestrel is one of Australia’s largest and highest-quality underground metallurgical coal mines, producing premium steelmaking coal for global export markets. The asset has a long mine life and significant reserves and is widely regarded as a tier-one operation within Australia’s resources sector.
The acquisition represents a significant strategic investment by Yancoal, expanding its portfolio of high-quality metallurgical coal assets and strengthening its position as a leading global coal producer.
G+T is advising Yancoal on the proposed acquisition, including regulatory and foreign investment approvals.
The G+T team advising Yancoal was led by partners Costas Condoleon, Mark McAleer and Kevin Ko, who were supported by a core transactional team of lawyers, including James Fisher, Michael Van Der Ende, Angus Wong, Jin Yoo and Dan Shlager.
The team commented:
We are thrilled to have supported Yancoal on this significant and strategic acquisition. High-quality metallurgical coal assets of this scale rarely come to market. This transaction positions Yancoal to capture sustained demand for premium steelmaking coal and reflects continued strategic investment in long-life, globally competitive resources.
