Kestrel, Australia / Steelmaking coal
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Kestrel is an underground coal mine located in the Bowen Basin, Queensland, Australia. It is operated by EMR Capital and PT Adaro Energy (‘EMR’ and ‘Adaro’). The Group owns 50% of certain sub‑stratum lands which, under Queensland law, entitle it to coal royalty receipts from the Kestrel mine.
Producing
Steelmaking coal
Kestrel Coal Pty Ltd
Australia
Royalty rate and type
7–40% GRR
Balance sheet classification
Investment property
Key facts
$17.5m
Royalty contribution.
The royalty rate to which the Group is entitled is prescribed by the Queensland Mineral Resources Regulations. These regulations currently stipulate that the basis of calculation is a six-tiered fixed percentage of the invoiced value of the coal based on the average realised coal price per tonne in the period, as follows: 7% of the value up to and including A$100; 12.5% of the value over A$100 and up to and including A$150; 15% of the value over A$150 and up to and including A$175; 20% of the value over A$175 and up to and including A$225; 30% of the value over A$225 and up to and including A$300; and 40% thereafter.
2025 production from the Group’s private royalty area within the Kestrel steelmaking coal mine totaled 2.2mt (2024: 2.1mt). Due to the average realised price falling to $143/t (2024: $223/t), the portfolio contribution was down 58% to $17.5m (2024: $41.4m). During 2026, Kestrel mining operations within the Group’s royalty area are expected to primarily occur during the second half of the year and produce between 1.0 and 1.2mt of saleable production.