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.


The Group received record royalty income from Kestrel in 2018, for the second year in a row. Total revenue in 2018 was £32.6m, a 13.5% increase on the previous record of £28.8m in 2017.

The significant increase in royalty income in 2018 was as a result of higher coking coal prices.

The outlook for 2019 remains positive, both in terms of volume and price.