Kestrel / Steelmaking 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.




Steelmaking coal


EMR Capital and Adaro



Royalty rate and type
7–40% 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.  

2023 saw mining operations move into an area that is only partially covered by Ecora’s royalty area and therefore saleable production volumes due to Ecora were principally received in Q1 and Q4. Production volume within Ecora’s royalty area totalled 1.6Mt (2022: 4.1Mt) at an average realised price of $225 per tonne (2022: $325 per tonne) which generated royalty income of $36.0m (2022:$107.0m).

Saleable production volumes within Ecora’s private royalty area are expected to be 15-25% higher in 2024 compared to 2023. Mining activity within the Ecora private royalty area is expected to be weighted towards H1. Saleable production volumes in the Group’s royalty area in 2025 are expected to be higher than 2024 levels and it is anticipated that volumes in the private royalty area by the end of 2026 will equate to 10% or less of Kestrel’s annual saleable production.

Key facts


Royalty contribution, with average coal prices of $225/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