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Adaro, EMR Capital buying Kestrel coking coal mine for $2.25B

JAKARTA (RambuEnergy) – PT Adaro Energy Tbk, together with EMR Capital (EMR), a specialist mining private equity manager, have entered into a binding agreement to acquire Rio Tinto’s 80% interest in the Kestrel coking coal mine for US$2.25 billion, Adaro said in a statement.

The Kestrel mine is located in the Bowen Basin, the world’s premier metallurgical coal region. Kestrel produced 4.25 Mt of hard coking coal (on a 100% basis) in 2017 and had market reserves of 146Mt and resources of 241Mt as at Dec. 31, 2017

Adaro said the company and EMR will jointly manage and operate Kestrel, leveraging EMR’s experience in acquiring and operating mining operations as well as company’s wealth of sector expertise as an experienced coal producer.

Kestrel Mine is an underground operation located 40 kilometers north-east of Emerald in central Queensland, supplying world markets coking and thermal coal.

Rio Tinto Coal Australia manages the operation on behalf of the joint venture partners, Queensland Coal Pty Limited (80 per cent) and Mitsui Kestrel Coal Investment (20 per cent).

Mining and production
Kestrel Mine is an underground mine which uses the longwall and continuous miner method to mine high-quality coking and thermal coal for export.

The coal deposit is part of the Bowen Basin, a significant Permian coal basin stretching 600 kilometers long and 250 kilometers wide.

In 2016 the mine produced just under 5 million tonnes1 of coking and thermal coal.. After being washed and prepared for sale, the coal is loaded onto trains for transportation 300 kilometers to the Port of Gladstone where it is shipped to international customers.

Kestrel Mine had JORC run-of-mine coal reserves totaling 132 million tonnes (37 million tonnes, proved and 95 million tonnes, probable) as at 31 December 2014. (*)

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