Yankuang Energy goes overseas again: its subsidiary Yancoal Australia plans to acquire 80% equity of the Red Falcon coal mine for $2.4 billion, expanding its global coking coal portfolio.

Yancoal Australia, a listed subsidiary of Yancoal Energy, announced plans to acquire up to 80% ownership of the Red Falcon coking coal mine in Queensland for a maximum of USD 2.4 billion, further expanding its portfolio of high-quality overseas coking coal assets.

According to a statement submitted by Yancoal Australia to the Australian Securities Exchange, the transaction will indirectly hold 80% ownership in the Red Falcon coal mine through the acquisition of 100% equity in Red Falcon Group. The transaction includes a USD 1.55 billion upfront payment and up to USD 550 million in contingent payments, with a total price cap of USD 2.4 billion.

The deal is expected to close by the end of Q3 this year pending approval from relevant regulatory authorities. This acquisition marks an important step in Yancoal Energy’s continued deepening of its overseas resource strategy and helps further integrate high-quality coking coal assets.

Increasing investment in global premium coking coal regions

The Red Falcon coal mine is located in the Bowen Basin of Queensland, which is one of the world’s major coking (metallurgical) coal production regions, with coal supplies sent to steel companies across the globe. The mine was previously owned by a joint venture between EMR Capital and Adaro Capital. In 2018, this joint venture acquired 80% interest in the Red Falcon mine from Rio Tinto for USD 2.25 billion, with the remaining 20% held by Mitsui & Co.

Yancoal Australia serves as Yancoal Energy Group’s listed platform in Australia, currently operating several thermal and coking coal mines in New South Wales and Queensland.

This acquisition continues Yancoal’s sustained investment in Australian coal assets. After the transaction, Yancoal Australia will gain a strategic foothold in the Bowen Basin, a world-class coking coal hub, further strengthening its position in the global coking coal supply chain.

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