Adaro (AADI) Sells Kestrel Coal Mine in Australia for IDR 41 Trillion

PT Adaro Andalan Indonesia Tbk (AADI), through Adaro Capital Limited (ACL), will sell 720,385,220 shares, representing 47.99% of its ownership in the Australia-based metallurgical coal mining company Kestrel coal Group Pty Ltd, to a third party for a total transaction value of USD 2.4 billion, or equivalent to IDR 41.14 trillion (assuming an exchange rate of IDR 17,140 per USD).Not only divesting shares, based on the sale and purchase agreement (SPA) signed on April 14, 2026, ACL, a subsidiary of AADI, is also selling its warrants in the mine located in Queensland, Australia.“The completion of the planned transaction will be carried out after all conditions precedent as agreed by the parties in the SPA have been fulfilled,” explained AADI Corporate Secretary Ray Aryaputra in an official announcement to the Indonesia Stock Exchange (IDX) on Tuesday (14/4/2026).From the massive transaction, USD 1.85 billion, or equivalent to IDR 31.70 trillion, will be paid upfront in cash (upfront cash consideration) at the transaction completion date, subject to adjustments based on the terms and conditions in the SPA.Meanwhile, a maximum of USD 550 million, which constitutes contingent cash consideration, will be paid annually over a five-year period from the transaction completion date.Under the terms, Ray explained that the annual payments will be made if the average published daily price of the Platts Premium Low Vol Hard Coking coal FOB Australia index (PLVHA00) in the relevant assessment year exceeds a certain threshold. Based on this mechanism, the transaction value received by ACL will be calculated according to ACL’s ownership proportion in Kestrel.According to Ray, the divestment of shares in the Kestrel coal mine aims to support AADI’s business and investment strategy. “There is no material adverse impact on the company’s operations, legal standing, financial condition, or business continuity,” he emphasized.For context, the Adaro Group, together with EMR Capital Ltd, completed the acquisition of 80% ownership of Rio Tinto in the Kestrel coal Mine (Kestrel) in 2018, while the remaining 20% is held by Mitsui coal Australia.At the time, President Director and CEO of Adaro Energy, Garibaldi “Boy” Thohir, stated that the acquisition of Kestrel was an important part of Adaro Group’s strategic expansion into the metallurgical coal portfolio, which had begun with Adaro Metcoal.“The presence of these two world-class metallurgical coal assets under the Adaro Mining pillar will strengthen our position in the metallurgical coal market and support Adaro Energy’s long-term growth,” said Boy.Kestrel coal Resources Pty Ltd is a joint venture company formed by Adaro Energy (48%) and EMR Kestrel, representing a high-quality metallurgical coal asset with a long-life resource base, solid infrastructure, and a highly skilled workforce. The mine is located 40 km north of the city of Emerald, within the Bowen Basin coal region in central Queensland.In 2017, Kestrel produced 4.25 Mt of high-quality metallurgical coal and had marketable reserves of 146 Mt and resources of 241 Mt.

Source https://djakarta-miningclub.com