What we own

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 presently entitled is prescribed by the Queensland Mineral Resources Regulations. These regulations currently stipulate that the basis of calculation is a three-tiered fixed percentage of the invoiced value of the coal as follows: 7% of value up to and including A$100; 12.5% of the value over A$100 and up to and including A$150; and 15% thereafter.


For the third year in a row the Group received record royalty
income from Kestrel in 2019. Total revenue in 2019 was £37.0m, a 13.4% increase on the previous record of £32.6m in 2018. We have seen our income grow tenfold over the past five years, primarily due to volume increases, initially as mining moved further within our private royalty land and latterly as overall volumes increased following the change of operator. At the end of 2018, Adaro announced its intention to increase saleable production at the mine by 40% in 2019 compared to 2018, following the implementation of a change programme by new management. Although this seemed to be quite a stretch target at the time, we were delighted to see the progress made during the year resulting in overall sales volumes increasing by 36% for the year as a whole, a fantastic achievement by the new operating team.