Coal miner Adaro Energy (ADRO) and EMR Capital Ltd completed acquisition process in Kestrel Coal Mine on Wednesday (Aug 1), a follow-up of an agreement to acquire 80% of Rio Tinto‘s coal asset Kestrel in Australia.
Kestrel Coal Resource Pty Ltd holds 80% in said company Mitsui Coal Australia owns 20%. Kestrel Coal Resources is a joint venture company between ADRO and EMR with ownership of 48% and 52%, respectively. Adaro and EMR reportedly spend US$2.25 billion for this acquisition. EMR Capital Ltd is a private equity company specializing in the mining sector.
ADRO’s President Director and CEO Garibaldi Thohir said ADRO starts its expansion in the metallurgical coal, started with Adaro MetCoal. Kestrel produced 4.25 million tonnes of metallurgical coal in 2017 and has a marketable reserve of 146 million ton and resource of 241 million ton.
ADRO aims to double Kestrel Mine’s production, to 10 million metric tons of coking coal per year from current 5.5 million tons.