Yari Minerals has completed the acquisition of the Rolleston South Coal Project in Queensland’s Bowen Basin, adding a substantial 78.9 million tonnes inferred coal resource and planning further drilling to expand it.
- Acquisition of Rolleston South Coal Project with 78.9Mt JORC inferred coal resource
- Project located in world-class Bowen Basin near major coal operations
- Consideration includes 19.9% shareholding and performance rights tied to resource growth
- Planned drilling campaign aims to expand resource and improve classification
- Focus on producing semi-soft metallurgical coal product
Strategic Acquisition in a Premier Coal Region
Yari Minerals has officially completed its acquisition of the Rolleston South Coal Project, a significant coal exploration asset located in Queensland’s renowned Bowen Basin. The project boasts a JORC-compliant inferred resource of 78.9 million tonnes of coal, positioning Yari to substantially enhance its resource portfolio in a region known for its rich coal deposits and established mining infrastructure.
The Rolleston South Coal Project covers approximately 272 square kilometres and lies within close proximity, less than 25 kilometres, to major coal operations run by industry heavyweights such as Glencore and Peabody. This adjacency not only underscores the project’s geological potential but also offers logistical advantages, including access to sealed roads and nearby railways, which are critical for future development and export activities.
Resource Potential and Exploration Upside
Historical exploration has identified six coal seams within the project area, with thicknesses ranging from just over one metre to more than six metres. Laboratory analyses confirm the coal’s high calorific value and low ash content, making it suitable for both thermal coal markets and the production of semi-soft metallurgical coal, a product increasingly sought after in steelmaking.
Yari’s immediate plans include a drilling program scheduled for later this year, aimed at expanding the current resource beyond its existing boundaries and upgrading the resource classification through infill drilling. This approach reflects a clear strategy to unlock further value and potentially increase the project’s resource base above the 100 million tonnes threshold, which would trigger the vesting of performance rights issued as part of the acquisition consideration.
Consideration Structure and Shareholder Engagement
The acquisition was structured with a mix of upfront and deferred consideration. Vendors received nearly 120 million shares in Yari, representing a 19.9% stake, alongside over 86 million performance rights contingent on the company achieving a JORC inferred coal resource exceeding 100 million tonnes. Shareholder approval for the deferred shares and performance rights is expected to be sought in a meeting planned for late June 2025.
This structure aligns vendor interests with Yari’s success in advancing the project, while also preserving capital flexibility for the company. It signals confidence in the project’s potential and Yari’s ability to deliver on its exploration and development objectives.
Positioning for the Future
With the Rolleston South Coal Project now under its control, Yari Minerals is well positioned to capitalize on the growing demand for high-quality coal products, particularly semi-soft metallurgical coal. The company’s broader portfolio, including lithium exploration projects in Western Australia’s Pilbara region, suggests a diversified approach to resource development.
However, the success of this acquisition will hinge on the outcomes of the upcoming drilling campaign and the company’s ability to navigate regulatory approvals and market conditions. The Bowen Basin remains a competitive and dynamic coal region, but Yari’s acquisition adds a promising asset to its portfolio that could drive growth in the coming years.
Bottom Line?
Yari’s acquisition marks a pivotal step, but upcoming drilling results will be key to unlocking the project’s full potential.
Questions in the middle?
- Will Yari’s drilling campaign expand the resource beyond the 100Mt threshold to trigger performance rights?
- How will Yari position the Rolleston South coal product in evolving thermal and metallurgical coal markets?
- What are the timelines and risks associated with securing shareholder approvals and advancing project development?