Yari Minerals Secures 78.9Mt Coal Resource in Bowen Basin Acquisition

Strategic Acquisition in a Tier 1 Coal Jurisdiction

Yari Minerals Limited (ASX: YAR) has entered into a binding agreement to acquire Resource Chain Pty Ltd, the owner of the Rolleston South Coal Project in Queensland’s Bowen Basin. This acquisition brings a JORC 2012 compliant inferred coal resource of 78.9 million tonnes into Yari’s portfolio, marking a significant step for the company in the coal exploration sector.

The Rolleston South Coal Project is situated in one of Australia’s premier coal regions, the Bowen Basin, known for its high-quality coal deposits and robust mining infrastructure. The project area covers approximately 272 square kilometres and is strategically located near existing coal operations owned by multinational giants Glencore and Peabody, which lie within 25 kilometres. This proximity offers Yari access to established infrastructure including sealed roads and nearby railways, facilitating potential future development.

Resource Details and Exploration Upside

The project’s coal resource comprises six delineated seams within the Bandanna Formation, with average thicknesses ranging from 1.02 to 2.80 metres and a maximum thickness of 6.06 metres. Laboratory analyses confirm the coal’s suitability for producing a high-grade, low-ash, high-energy product. Notably, the coal’s washed calorific value ranges between 24.33 and 27.98 MJ/kg, supporting both export thermal coal and semi-soft metallurgical coal products.

Yari plans to initiate a drilling program within the current year aimed at expanding the mineral resource beyond the existing envelope and upgrading the resource classification through infill drilling. This program will also support metallurgical testing to confirm the coal’s suitability for semi-soft coking coal production, a product with strong market demand.

Transaction Structure and Conditions

The acquisition consideration includes the issuance of 119.6 million shares in Yari, representing a 19.9% stake, alongside 86 million performance rights. These performance rights vest upon the declaration of a JORC inferred coal resource exceeding 100 million tonnes at Rolleston South, incentivizing resource growth. Completion of the transaction is contingent upon satisfactory due diligence and shareholder approval, with a meeting expected in late June 2025 to ratify the share issuance and approve the deferred shares and performance rights.

Yari’s Managing Director, Anthony Italiano, emphasised the strategic fit of the acquisition, highlighting the project’s compliance with Yari’s investment criteria and its potential for rapid advancement. The company intends to leverage the existing geological data, including 131 boreholes and seismic surveys, to refine the resource model and plan targeted exploration.

Looking Ahead: Development and Market Positioning

The Rolleston South Coal Project acquisition complements Yari’s existing portfolio, which includes lithium exploration assets in Western Australia’s Pilbara region. The addition of a substantial coal resource diversifies Yari’s asset base and positions the company to capitalize on both metallurgical and thermal coal markets.

While the resource is currently classified as inferred, the planned drilling and resource upgrade efforts could enhance its classification and economic viability. The project’s location near established mines and infrastructure reduces development risk, although environmental and regulatory approvals will be critical steps moving forward.