Kestrel / Coking coal

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An underground coal mine located in the Bowen Basin at Crinum, 51km north-east of Emerald in Central Queensland, Australia.




Coking coal


Kestrel Coal Pty Ltd



Royalty rate and type
7–15% GRR

Balance sheet classification
Investment property

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.

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 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.

Kestrel has been the Company’s most important revenue generating asset for many years. There are approximately three more years of mining expected in Ecora’s private royalty area. Cash flows have been directed to fund the Group’s transformation and it will continue to recycle the cash generated by the Kestrel royalty into commodities that will support a sustainable future.

Kestrel is an underground mine that uses longwall mining methods.  

Elevated steelmaking coal prices during the first half of the year, when the price averaged $448 per tonne, drove a record portfolio contribution from Kestrel of $107m. Prices weakened in the second half, albeit to an average price of $328 per tonne, still considerably above the historical long-term price. The impact of the softening of prices in H2 was partially offset by the decision of the Queensland Government to increase royalty rates applicable under higher coal prices effective from 1 July 2022. Given that Ecora owns the land rights within our private royalty area, the Group benefits from the increased royalty rates. However, in Q4, saleable production volumes were impacted by operational constraints that limited mined tonnes and throughput volumes at the handling and reparation plant.

Key facts


Record royalty contribution, with average coal prices of $328/t allowing for the recycling of cash flow into copper and nickel

1 July 2022

New higher bands added to coal royalty rate in Queensland, Australia

250 tonnes

~250 tonnes of steel making coal is required to build a single offshore wind turbine, being used to construct every main component, including the generator, blades, tower and foundation