Kestrel Coal Resources acknowledges and pays respect to the Western Kangoulu people, the registered native title claimants for the land on which we operate. We pay our respects to Elders past, present and emerging.
We proudly work in collaboration with the Western Kangoulu people under a voluntary Cultural Heritage Investigations and Management Agreement to achieve effective management that actively maintains, protects, and preserves heritage.
Working together, our shared goal is to create meaningful, sustainable opportunities for Indigenous peoples through employment and business development.
FRONT COVER: Artwork produced by Hedley Henningsen, Western Kangoulu artist and reproduced by agreement and consent from artist.
IMPORTANT NOTICES AND DISCLAIMER
This document has been prepared by Kestrel Coal Resources (ABN 98 624 245 325) (Kestrel) for informational purposes only. Kestrel has prepared this document based on information available to it at the time of preparation. The information contained in this document is general in nature & does not purport to be complete. The document does not contain an offer, solicitation, invitation to apply, recommendation or advice to buy, sell or hold any securities of Kestrel. This report has been prepared in accordance with the International Council on Mining and Metals (ICMM) Mining Principles. Metrics describing health, safety, environment, people and community related performance in a joint venture operation, from 1 January 2024 – 31 December 2024. This document may contain forward looking statements, including statements about plans, strategies and objectives of management; and anticipated productive lives of projects, mines and facilities; and climate change, other environmental and energy transition scenarios (which are potential scenarios and not forecasts). These forward looking
are
or
of future performance.
Introduction from the CEO
I am pleased to present Kestrel’s 2024 Sustainability Report, which reflects our continued commitment to Environmental, Social, and Governance (ESG) priorities. This year’s report highlights the meaningful progress we have made across key sustainability metrics and reaffirms our focus on delivering longterm value through responsible and transparent practices.
At Kestrel, our commitment to sustainability is embedded in the way we operate every day. We remain focused on continuous improvement and longterm value creation, working closely with our people, communities and partners to ensure our operations are safe, responsible and resilient in the face of evolving expectations and challenges.
As a coal producer in Central Queensland, we recognise the unique responsibility we carry. We remain focused on operating safely, ethically, and in partnership with our workforce, communities and stakeholders –helping shape a more responsible and sustainable future for our industry.
Our Highlights
Throughout 2024, we took important steps to strengthen our culture and our operations. We placed renewed emphasis on mental health and
wellbeing, partnering with respected voices in the field to encourage open, honest conversations and helpseeking behaviours. This initiative has helped foster a culture of support and contributed to a more resilient and inclusive workplace, strengthening our overall approach to health, wellbeing and team connection.
We also progressed our transformation toward becoming a Highly Reliable Organisation (HRO), embedding a mindset of reliability and continuous improvement across the business. This shift has enabled us to simplify processes, reduce risk, and strengthen our foundations for longterm performance.
Importantly, we secured government support for key emissions-reduction projects, reflecting our long-term commitment to lower-emissions operations. These initiatives form part of a broader effort to ensure Kestrel aligns with evolving environmental expectations while continuing to responsibly support the steel value chain.
Kestrel secured Queensland Government funding support for our Coal Mine Waste Gas (CMWG) power station project – an initiative aimed at reducing Kestrel’s scope 2 emissions and our reliance and capacity demand on the electricity grid.
Additionally, Kestrel secured a Federal Government grant for the development of our Ventilated Air Methane (VAM) Regenerative Thermal Oxidation (RTO) project, which targets the safe destruction of low-concentration methane. Both projects are scheduled to progress to their next phases in 2025 and represent key components of our long-term commitment to sustainable, lower-emission operations.
Our Challenges
While 2024 brought meaningful achievements, it also presented challenges. A frictional ignition event late in the year reminded us of the ever-present risks in our industry and
reinforced our unwavering commitment to safety and learning.
We also navigated heightened market volatility, underscoring the importance of maintaining operational discipline and financial resilience.
Positioning for the Future
Looking ahead, the metallurgical coal industry will continue to remain a critical component of global steel production, particularly as developing economies continue to urbanise and invest in infrastructure. At the same time, we must adapt to shifting market dynamics, decarbonisation policies, and the future of steelmaking. At Kestrel, we are committed to being part of this transition – balancing today’s needs with tomorrow’s responsibilities.
As part of this long-term strategy, we will continue to progress the Kestrel West Mine Extension Project. This project builds on our existing operations to support continued operations beyond 2033 while minimising environmental impact. It will help sustain our workforce and deliver ongoing economic benefits to Queensland and Australia. We look forward to engaging with our communities and stakeholders as the Environmental Impact Statement is released in 2025.
In summary, 2024 has been a year of significant progress, reflection and growth for Kestrel. I am proud of what we have achieved and confident in the direction we are heading.
Thank you for your continued support as we work toward a more sustainable future.
Phil Nobes Chief Executive Officer Kestrel Coal Resources
A Legacy Worth Leaving
We believe that building a business with purpose not only ensures resilience, but also leaves a legacy we can stand behind. Our ESG Strategy reflects our broader business philosophy: to grow responsibly while delivering long-term value for our stakeholders. It guides how we integrate sustainability into our decision-making and daily operations, helping us manage risks, meet regulatory expectations, and maintain our social licence to operate.
Who is Kestrel?
Kestrel Coal is a leading producer of premium metallurgical coal, operating in Queensland’s Bowen Basin, approximately 40 kilometres north of Emerald. Strategically positioned near key infrastructure, Kestrel benefits from a stable, regionally based workforce, with most employees residing in Emerald and nearby communities.
Our corporate team based in Brisbane, supports finance, marketing, planning, and leadership functions.
Kestrel’s operations are located within the Bowen Basin – one of the world’s most significant sources of high-quality metallurgical coal. Renowned for its low impurity levels and superior coke characteristics, Bowen Basin coal is highly sought after by steel producers across the globe.
At Kestrel, we extract metallurgical coal from the German Creek coal seam using underground longwall mining. Run-of-Mine (ROM) coal is transported via an 8 kilometre overland conveyor to our onsite Coal Handling and Preparation Plant (CHPP) for processing. From there, the washed product is loaded at our dedicated train loadout facility and delivered by rail to the Port of Gladstone, ready for export to our international customers.
Our Sustainability Approach
Sustainably Supplying Steelmakers
Tracking Progress and Building Accountability
The Kestrel 2024 Sustainability Report provides a transparent account of our ESG performance, aligning with leading frameworks such as the International Council on Mining and Metals (ICMM) –Mining with Principles. It enables us to measure our progress against material topics identified through stakeholder engagement and operational analysis. These topics guide how we evaluate our ESG maturity, benchmark our performance, and remain accountable to our commitments. The report is both a reflection of what we've achieved and a forward-looking roadmap for continual improvement, ensuring Kestrel operates as a responsible and resilient business.
Commitment to
Sustainable Operations
Kestrel’s approach to sustainability is underpinned by our commitment to
Material Topics
respect the legacy of our operations, act responsibly today, and plan for a resilient, future-focused business. We operate a low-impact underground mine with a strong emphasis on risk management, minimal surface disturbance, and continuous improvement.
Our sustainability efforts are focused on five key areas:
Fostering an inclusive workforce
Decarbonisation and emissions management
Cultural heritage protection
Biodiversity and land conservation
Water stewardship
Delivering Critical Resources Responsibly
Kestrel produces high-quality coking coal, recognised globally for its low impurities and superior performance in steelmaking. As the world transitions to
a low-carbon economy, steel remains a foundational material - especially in renewable infrastructure and green technologies. Our role is to deliver this resource responsibly, with ESG considerations embedded in every stage of the value chain.
ESG Strategy Embedded in Our Business
In 2024, we continued to implement our comprehensive Environment, Social, and Governance (ESG) Strategy. Developed through a rigorous assessment of our operational impacts and stakeholder expectations, the strategy identifies Kestrel’s most material ESG topics and aligns them to four key strategic themes:
Ethical Business Practice
Valuing Our People
Connected Communities
Responsible Environmental Stewardship
Valuing Our People
Ensure
Continuously
Ten (10) principles common across the global mining community as an industry benchmark and sustainability framework. The ICMM 10 Mining Principles are built to incorporate UN Sustainable Development Goals (SDG’s), Paris Agreement climate targets and responsible production as good practice.
Ethics and Risk
Corporate Structure
Kestrel Coal Resources is an Australian company, jointly owned by EMR Capital (52%) and Adaro Capital Limited (48%). EMR Capital is a specialist private equity firm focused on mining investments, while Adaro Capital is a diversified energy company with operations across coal, power, utilities, and infrastructure. Kestrel Coal Resources holds an 80% interest in, and manages, the Kestrel Coal Joint Venture. The remaining 20% is owned by Mitsui.
Kestrel’s corporate structure
Governance, Ethics and Risk Management
Ethical business practices and sound systems of corporate governance are key to maintaining our social licence to operate.
Our Approach to Governance, Ethics and Risk Management
At Kestrel, strong governance frameworks underpin our ability to operate responsibly and deliver sustainable value. We are committed to ethical conduct, transparent decisionmaking, and proactive risk management – all of which are critical to ensuring long-term resilience, maintaining stakeholder trust and meeting our sustainability objectives.
Corporate Governance Framework
Kestrel Coal Resources is governed by a Board of Directors composed of 10 members, with equal representation from Adaro Capital Limited and EMR
Capital. The Board provides oversight of the company’s strategic direction, risk management and overall performance. It is supported by an Operating SubCommittee (OpCo), which provides guidance on business performance, material risks, ESG matters, and operational milestones.
The executive leadership team, led by the CEO, is responsible for the day-today implementation of the company’s strategy. The CEO is accountable to the Board and is responsible for the delivery of sustainable business outcomes. The CEO and executive leadership team leads the implementation of Kestrel’s Policies including Safety Health and Wellness, Risk and Opportunity, Sustainability and Climate Change and Environment and Land.
For decarbonisation, climate risk management and climate related financial disclosure, Kestrel has a senior specialist role (Principal Carbon Transition) to provide strategic oversight and technical leadership.
Business Ethics and Conduct
We maintain a strong ethical culture, anchored by our Code of Conduct, which outlines the expected behaviours of all employees, contractors, and partners.
Key focus areas include:
Anti-bribery and anti-corruption
Human rights and modern slavery
Data privacy and responsible data use
Protection against theft, fraud, and conflicts of interest
Prevention of discrimination, bullying, and harassment
Kestrel’s values promote a respectful, inclusive and safe workplace. We encourage open communication and integrity at all levels. Our independent “Your Voice Matters” whistleblower hotline provides a confidential and anonymous channel for reporting concerns.
We are committed to respecting human rights, in line with the UN Guiding Principles on Business and Human Rights, and we comply with Australia’s Modern Slavery Act 2018. Our suppliers are required to uphold equivalent standards.
Risk and Climate Governance
Effective risk management is integral to Kestrel’s operational and strategic resilience. Our Risk Management Framework addresses material risks across operational, safety, environmental, financial, reputational, and climate-related domains.
The Board plays a central role in risk governance, including:
Reviewing the company’s risk profile and tolerance
Overseeing climate-related risks and opportunities
Approving risk management frameworks and mitigation strategies
Receiving updates via the OpCo
Approving decarbonisation strategies
Climate Scenario Analysis and Strategic Planning
A key element of substantively understanding the climate-related risk for Kestrel is to determine the potential current and future impacts of climate change that may materially impact our business. Kestrel considers that there are two major categories of potential climate change impact for our operations:
1. The physical risks of climate change
2. The impact of climate policy on the demand of metallurgical coal
Climate Risk Management
To mitigate, manage and avoid climate related risks, Kestrel has embedded climate risk considerations into our risk assessment and management processes. This includes:
Updating the risk management processes to include climate related risk considerations
Including climate impact assessment in our Broad Brush Risk Assessment
Setting an internal cost of carbon
How we progressed in 2024
In 2024, we advanced several initiatives to strengthen our governance, ethics, and risk management practices, reflecting our commitment to responsible and resilient business operations.
Continued leadership development to strengthen ethical decision-making and accountability at all levels
Submitted our 2024 Modern Slavery Statement, detailing our efforts to identify and mitigate risks in our operations and supply chain
Conducted risk reviews of key suppliers, particularly those in higherrisk categories, to ensure alignment with modern slavery and labour rights expectations
Released our first Decarbonisation Strategy. This important milestone set out how we plan to reduce our material emissions sources across our Scope 1 and 2 emissions.
Strengthened internal capacity by establishing an internal cost of carbon
In readiness for climate-related financial disclosures reporting, Kestrel undertook a gap analysis to the amended Corporations Act 2001 (Commonwealth), identifying, designing actions to address gaps and assigning responsibilities to improve the climate risk related processes within Kestrel. These actions are well progressed and Kestrel is well prepared ahead of our first reporting period.
The Year Ahead
We will continue to strengthen governance practices to meet evolving expectations from regulators, investors, and communities. This includes:
Continue to strengthen our governance through training and risk reviews of policies and processes.
Continue to prepare for our first Climate-Related Disclosure Report.
Continuing transparent reporting of ethical performance and human rights due diligence.
Determining the scenarios for climate-related disclosure planning and perform scenario analysis.
Innovation and Technology
To remain industry leaders and create an enduring business we must constantly adapt to change and look for new and improved ways of work.
Our Approach to Innovation and Technology
Kestrel recognises that innovation and technology are key drivers of sustained growth and long-term success. We are committed to continuously improving our operations through strategic innovation, allowing us to enhance safety, increase production efficiency, and advance our ESG performance. By embracing new technologies and evolving industry trends, we ensure that Kestrel stays at the forefront of the mining sector, positioning us to capitalize on emerging opportunities while effectively managing risk and adapting to changing market dynamics.
How we progressed in 2024
The life of mine communications tower project commenced in 2024, with engineering and procurement progressing to plan. Construction is scheduled for completion in 2025, delivering a whole-of-site communication hub to support digital radio, gas drainage systems, point-to-point radio links and private LTE connectivity.
A key component of the project is the rollout of a site-wide surface digital radio
system. A dedicated working group has been established to oversee its delivery. The system will be integrated into the new tower and is designed to provide reliable digital radio coverage across the entire Kestrel Mine, including the Kestrel West Project area.
Underground network capabilities were enhanced in 2024 through the upgrade of Wi-Fi access points. The installation of next-generation access units has significantly improved connectivity, enabling greater utilisation of automation systems and smart devices underground. Kestrel continued to advance its digital transformation strategy, with the introduction of mobile devices and electronic data capture tools designed to enhance operational efficiency. Initial trials of digital forms are underway, with ongoing feedback helping to refine and optimise the user experience. Workforce training will commence in early 2025, followed by a staged rollout across site. These tools will support more informed decision-making, improve data accuracy and contribute to safer, more efficient task execution.
The remote operation of the longwall shearer progressed well in 2024, with
surface-based control being deployed when conditions permit. Further automation of the longwall roof supports is planned for 2025. These developments will continue to reduce workforce exposure to underground hazards, enhancing the overall safety of our mining operations.
The Year Ahead
Advance to construction of life-of-mine communications tower.
Complete installation and commissioning of the surface digital radio system.
Advance remote operation capabilities of the longwall, with a focus on reducing workforce exposure and improving safety.
Deliver underground workforce training and commence staged rollout of mobile digital forms and data capture systems.
COAR Awards
Kestrel’s values recognition program
Kestrel’s COAR Awards are more than just a recognition program; they’re a celebration of the incredible people who bring our values to life every day. Through this program, employees have the opportunity to nominate colleagues who truly embody these principles in their work. Every nomination highlights the commitment, teamwork, adaptability, and respect that drives our success, making the COAR Awards a powerful way to acknowledge and appreciate the people who make a difference.
But the impact doesn’t stop there. For every nomination received, we contribute $20 to support local community groups, turning recognition into real change. Throughout 2024, we received 174 nominations, celebrated 36 outstanding winners, and raised an incredible $3.4k, which was donated to local community groups.
Our COAR Awards aren’t just about recognition; they’re about building a culture of appreciation while giving back to the community we’re proud to be part of.
Valuing Our People
ENSURE
Fostering Growth and Empowering our People
Throughout our organisation, we understand that a strong, engaged workforce is essential to delivering consistent performance and long-term value. Our People and Culture Experience Strategy is a key enabler of operational excellence and business growth. This strategy is guided by three core principles:
Embedding safety into every aspect of our operations
Ensuring our values drive decision-making and culture
Aligning all people initiatives with our broader business strategy
Workplace Health, Safety and Wellbeing
We will only reach our highest potential by instilling and supporting a safety mindset in everything we do and within all our people.
Our Approach to Workplace Health, Safety and Wellbeing
At Kestrel, we take a practical and accountable approach to health, safety and wellbeing, recognising it as a critical foundation for operational success and workforce sustainability. In 2024, we built on our strong foundations by implementing targeted programs that supported both physical and mental wellbeing, strengthened our leadership capability, and reinforced a proactive approach to risk management.
We are committed to creating an environment where safety is not just a set of procedures but a shared mindset. While systems and standards are important, it is the culture of safety – adopted by every individual – that truly drives strong performance. A safety mindset goes beyond physical wellbeing; it includes mental and emotional wellbeing and supports our people in feeling confident, capable, and supported in their roles.
By embedding safety into our culture and daily operations, we aim to make the safe way the easy way. This results in fewer injuries, reduced downtime, stronger team engagement and a more productive and positive workplace. Ultimately, our safety-first approach enables high performance and long-term success for our people and our business.
How we progressed in 2024
Mental health and wellbeing continued to be a priority, particularly in recognising the unique challenges faced by our remote and regional workforce. This year,
we hosted a series of impactful mental health sessions with the Founder of Are You Bogged Mate?, which sparked open and honest conversations around mental wellbeing and helped break down the stigma associated with seeking support. These sessions were well-received and formed a key part of our broader strategy to normalise mental health dialogue on site and in the community.
We also enhanced our physical health programs, conducting taskspecific ergonomic assessments aimed at reducing the risk of strain and musculoskeletal injuries. These assessments allowed us to tailor interventions at a task level, ensuring practical, fit-for-purpose controls were in place to support the long-term physical health of our workforce.
On the safety leadership and systems front, we undertook a significant uplift in our Supervisor pre-requisite training. This ensured frontline leaders had the tools, knowledge and confidence to lead safe and efficient teams. We also refined our Contractor Field Verification processes, fostering a stronger culture of shared accountability and reinforcing expectations for safe work behaviours across our contractor workforce.
Our ongoing commitment to continuous improvement was demonstrated through the successful achievement of work area inspection targets, reinforcing our compliance with internal standards and regulatory obligations.
Toward the end of the year, we initiated a full review and refresh of our Golden
Rules. These rules play a vital role in shaping frontline behaviours and decision-making. The review focused on relevance, alignment with critical risk controls, and how to better embed the rules into everyday work practices.
The Year Ahead
Launching our refreshed Golden Rules across the workforce, supported by a comprehensive communications and engagement campaign to ensure strong understanding and adoption at all levels.
Reviewing and enhancing our Investigation Tools to better align with High Reliability Organisation (HRO) principles. This will include streamlining processes, reducing duplication between departments, and driving more meaningful learnings from events.
Exploring new approaches to proactive health monitoring, including digital tools that support early identification of health risks and enable tailored intervention.
Through these initiatives, we aim to strengthen our culture of care, empower our people to make safe choices, and continue building a resilient and healthy workforce.
Healthy Lifestyle Challenge 2024
The 2024 Healthy Lifestyle Challenge was once again a standout initiative for supporting workforce health and wellness. This year saw strong engagement across the site, with 258 employees and contractors participating, maintaining the high levels of involvement seen in 2023 (255 participants).
A key enhancement in 2024 was the introduction of team entries, with 13 teams competing and encouraging a sense of camaraderie, accountability, and fun. The challenge also benefited from generous support across our site community, with multiple contractor groups donating prizes for the popular “Healthy Lifestyle Bingo,” boosting participation and motivation.
Collectively, improvements were seen in both Body Fat Mass (BFM) loss and Skeletal Muscle Mass (SMM) gain, both positive indicators of the challenge’s success. Maintaining high participation year-on-year highlights the program’s value in fostering a culture of wellbeing, teamwork, and healthy competition.
Attracting, Developing and Retaining our People
Our achievements are supported by the recruitment, retention and development of team members who possess the necessary skills, relevant experience, behaviours and values that align with our culture.
Our Approach
The growth and long-term success of Kestrel relies on the capability, engagement and wellbeing of our people. We are committed to building a high-performing, future-ready workforce by investing in learning, development, and leadership at all levels.
Our People, Culture, and Safety Strategy is designed to position Kestrel as an employer of choice within the industry. This is underpinned by a sustainable workforce plan, a strong focus on safety, and leadership that prioritises development, inclusion and performance.
How we progressed in 2024
In 2024, we made meaningful progress in creating a more engaged and capable workforce. Key achievements include:
Embedding Performance Conversations: Our continuous performance conversations process was firmly established across the business. Leaders and team members are now engaging in regular, two-way discussions that support performance, align behaviours and encourage open feedback. These quarterly conversations include individual goal-setting, helping to create clear focus and accountability.
Strengthening Entry-Level Pathways: We continued to build our talent pipeline through the successful recruitment and onboarding of six new Apprentices and three Graduates. Both programs attracted a strong pool of applicants, reflecting the effectiveness of our recruitment processes and the growing reputation of Kestrel as a place to start a meaningful career.
Enhancing Career Development Tools: The rollout of key development training modules marked a significant step forward in how we support employee growth. The launch of the Talent and Career Profiles provides greater visibility into succession planning, performance, and employee aspirations, enabling more tailored and proactive development planning.
Fostering a Culture of Ongoing Feedback: To further embed a strong feedback culture, we introduced the Continuous Feedback module, encouraging real-time recognition, coaching, and more meaningful performance conversations throughout the year.
These initiatives reflect our ongoing commitment to developing our people and building a resilient, high-performing workforce that supports Kestrel’s longterm success.
The Year Ahead
Continue to roll-out our refreshed entry-level options, which will include Immersion Programs for Year 10 and Year 12 students.
Update the careers pages of the Kestrel website to create a more engaging experience for potential job applicants.
Develop a Diversity, Equity and Inclusion strategy.
Develop a frontline leadership program, backed by the success of our UNLEASHED program.
Kestrel's Graduate Program
Uncovering Tomorrow's Leaders
At Kestrel, we are dedicated to nurturing the potential of our future leaders through our exceptional Graduate Program. This two-year journey offers graduates unparalleled development opportunities, immersing them in hands-on operations from the very first day. Our program is designed to foster growth and leadership, providing a structured and immersive experience that is second to none.
A Pathway to Leadership
Kestrel's Graduate Program is committed to enhancing leadership and management skills while equipping participants with practical industry knowledge. Graduates benefit from rotating through multidisciplined teams, gaining extensive exposure to various facets of our business. These rotations are based at our site, offering diverse and enriching experiences that provide invaluable insights into our operations.
Building Connections and Communities
Understanding the importance of community in the workplace, we create ample opportunities for graduates to build their internal networks through engaging social activities. These interactions are designed to foster a sense of belonging and camaraderie, ensuring that our graduates feel supported and connected throughout their journey with us.
Supportive Transition and Mentorship
Transitioning into the professional world can be challenging. Mentoring is a cornerstone of our program; within the first weeks, graduates are paired with experienced mentors who provide coaching and guidance, helping them navigate through rotations and transition seamlessly into post-program roles.
Annual Intake of Graduates
Kestrel conducts an annual intake of graduates, welcoming successful candidates to embark on their journey with us each January.
In 2024 we had eight Graduates in our Program.
At Kestrel, we are not just shaping careers; we are shaping the future leaders of our industry.
TESTIMONIAL
Cooper Arnaboldi
Mechanical Engineering Graduate
“Working for Kestrel has been an incredible journey of learning and professional growth. The mentorship provided here is exceptional, offering me the opportunity to apply my engineering skills in real-world scenarios while constantly learning from experienced professionals. Kestrel's commitment to innovation, safety and sustainable mining practices resonated deeply with me and were compelling reasons for me to choose Kestrel as the launchpad for my career. The best thing about Kestrel is undoubtedly its people. From day one, I've been surrounded by supportive colleagues who are not only experts in their fields but also genuinely invested in my professional development.”
Connected Communities
COLLABORATE WITH OUR STAKEHOLDERS TO BUILD ENDURING RELATIONSHIPS AND LONG-TERM SUCCESSFUL OUTCOMES
Building Relationships, Opportunities and Growth
Investing in our community is not just part of what we do – it is central to our long-term success. We believe that strong, connected communities create the foundation for a resilient and sustainable business. Kestrel adopts the view that we play a pivotal role in attracting skilled workers to the region while also helping to build the capabilities of the next generation of mining professionals.
As a predominantly residential operation, we are deeply integrated into the local areas where we live and work. Our commitment goes beyond employment opportunities – we actively support local businesses, schools, not-for-profit organisations and community groups through meaningful partnerships and investment.
This close connection fosters trust, enhances social and economic outcomes and ensures we continue to grow alongside our communities. By investing in our people and our region, we strengthen both our operations and the communities that support them.
Neighbours
Cultural Heritage and Indigenous Development
The Western Kangoulu people have a deep and enduring connection to the land, established over thousands of years. We recognise the importance of working in partnership with them to protect their cultural heritage and support the development of sustainable economic opportunities.
Our Approach to Cultural Heritage and Indigenous Development
Kestrel recognises the deep cultural significance of the land on which we operate and acknowledges Indigenous peoples as the First Australians. We honour their enduring connection to Country and are committed to respecting and protecting their cultural heritage.
We acknowledge the Western Kangoulu people as the registered native title claimants for the land in and around our operations. Our relationship with the Western Kangoulu is built on shared values of respect, equality, responsibility and honesty. We are committed to working together to protect their cultural heritage and to support broader social and economic development opportunities.
In partnership with the Western Kangoulu, we have developed and implemented cultural awareness training for our workforce. This includes a Welcome to Country video
by Western Kangoulu Elders in the Kestrel induction program which highlights the importance of cultural heritage protection and every worker's responsibility in preserving it.
Kestrel and the Western Kangoulu are joint parties to a Cultural Heritage Investigation and Management Agreement (CHIMA), formally recognised as a Cultural Heritage Management Plan. This agreement ensures culturally appropriate and legally compliant heritage protection practices across our operations.
Beyond heritage protection, Kestrel is focused on delivering long-term, meaningful outcomes through Indigenous employment, training and business development. We actively seek to grow procurement opportunities with Indigenous businesses and support skills development that aligns with our operational goals and community needs. Through ongoing collaboration, we aim to create shared value, preserve cultural heritage and
foster sustainable opportunities for Indigenous communities connected to our operations.
The Year Ahead
Further integrate cultural heritage considerations into site activities, workforce practices and procurement processes, ensuring that respect for Indigenous culture is embedded in dayto-day decision making and project planning.
Formalise cultural heritage activities into a Cultural Heritage Management System, integrating agreed protocols, responsibilities and processes to ensure consistent, respectful, and legally compliant practices across the stages of planning, development and operations.
Development of Local and Regional Communities
Local and regional communities are an integral part of Kestrel with over 60% of our workforce from these areas. Healthy local economies are critical for our ongoing success.
Our Approach to Development of Local and Regional Communities
As a longstanding and active member of the Central Highlands community, Kestrel is committed to supporting the region’s long-term development and resilience. Through meaningful partnerships with local organisations and stakeholders, we work to deliver shared value and contribute to sustainable, economic growth.
Our ongoing presence reflects a deep commitment to being a trusted and positive influence in the community –now and into the future.
Kestrel Community Grants
Our Community Grants Program continued to support local initiatives that drive long-term benefits in the areas where our people live and work. In 2024, there was an increased focus on improving the quality and access to health and recreation activities, as well as education opportunities, within the Central Highlands.
We were especially proud to provide financial support to Emerald State High School’s newly established Drones Club. As an extension of the school’s existing STEM program, the club integrates geography through the use of spatial technology – mapping locations and assessing impacts on people and places.
Kestrel’s participation in CHDC’s Workforce and Accommodation Program
In 2024, Kestrel took a significant step in addressing the housing market growth challenges in the Central Highlands by actively participating in the Central Highlands’ Development Corporation (CHDC) Workforce and Accommodation Collective.
Recognising the urgent need for innovative and sustainable housing
solutions, Kestrel supported the initiative by providing one of its centrally located properties for the display of a modular home. This display aimed to showcase alternative housing styles that are both affordable and adaptable to the region's evolving needs.
The initiative was met with positive feedback from residents and stakeholders.
As a direct result of this display home, the Regional Council approved the application of a private developer to proceed with a multi-unit development. This marks the first multi-unit development in Emerald since 2018/19, a milestone that underscores the impact of Kestrel's efforts in fostering sustainable growth and development in the region.
The Year Ahead
We remain committed to improving housing availability and choice across the Central Highlands. By working collaboratively with Council, Government, and other industry leaders, we aim to support a coordinated approach to enhancing liveability – helping ensure the region continues to be a place where people choose to live, work, and thrive.
Responsible Environment Stewardship
CONTINUOUSLY FIND WAYS TO IMPROVE PRODUCTION EFFICIENCY, SUSTAINABLY MANAGE OUR NATURAL RESOURCES AND TAKE STRONG ACTION ON CLIMATE CHANGE 06 ENVIRONMENTAL PERFORMANCE 07 CONSERVATION OF BIODIVERSITY 08 RESPONSIBLE PRODUCTION
Balancing Priorities for a Sustainable Future
Sustainable resource development is about striking the right balance between operational performance and environmental responsibility. At Kestrel, we understand the importance of protecting the natural systems we depend on – including land, water, air and biodiversity.
Our vision of a Legacy Worth Leaving is grounded in integrating day-to-day mining activities with long-term, positive land management outcomes. For us, ‘beneficial’ means delivering enduring value – environmental, social and economic – that supports resilience well beyond the life of mine.
To achieve this balance, we are focused on:
Improving operational efficiency to reduce waste and lower our environmental footprint
Minimising impacts to water resources through careful use, monitoring and protection of water systems
Rehabilitating land progressively to ensure long-term landscape stability and habitat connectivity
Supporting climate resilience through practical, site-based initiatives that reduce emissions and improve resource efficiency
Through this approach, we aim to supply critical resources responsibly while contributing to a more sustainable future for our people, communities, and the environment.
Water
As a scarce and often variable resource, we must provide for strong and transparent water governance as well as effective and efficient management of water at our operations.
Land Stewardship
As responsible land managers, Kestrel acknowledges the importance of conscientiously managing the land today to ensure we are not reducing or inhibiting the land’s future use and productivity.
Waste
We must design, construct, operate and decommission facilities using riskbased management practices to ensure no unacceptable impacts to the environment.
Climate
Recognising the challenge of climate change, Kestrel is committed to reducing our greenhouse gas emissions.
Climate Change
Recognising the challenge of climate change, Kestrel is committed to reducing our greenhouse gas emissions.
Our Approach to Emissions Reduction
At Kestrel, we recognise the challenges that climate change presents. We are committed to playing a practical and constructive role in the transition to a lower-emissions future. The metallurgical coal supplied by Kestrel to the global market is essential for producing steel – a critical material used in renewable energy infrastructure such as wind turbines, electric vehicles and transmission networks. In addition to enabling the energy transition, steel also remains one of the fundamental building blocks of modern society allowing the world to develop and prosper. Our role is to produce this resource as responsibly and efficiently as possible, driving economic development while safeguarding the environment.
Our approach to emissions reduction aligns with national and global frameworks, including Australia’s Climate Change Act 2022, the Paris Agreement targets and the ICMM Climate Change Position Statement. We measure and report our Scope 1 and 2 greenhouse gas emissions in line with the National Greenhouse and Energy Reporting Act 2007 (NGERs).
Our Emissions Profile
Consistent with our FY22/23 NGERs reporting, Ventilation Air Methane (VAM) remain Kestrel’s largest source of greenhouse gas emissions, followed by the emissions from the pre and postdrainage coal mine waste gas (CMWG) activities.
A major milestone in 2024 was the release of our first decarbonisation strategy, which outlines our short- and medium-term ambitions and is available on our website. The strategy supports our longer-term emissions reduction projects and is aligned with our regulatory commitments.
Kestrel is covered by the safeguard mechanism and reported a carbon liability for the first time in FY23/24. As
anticipated in our 2022 and 2023 reports this liability will continue in the short term due to high gas content in our current mining area, while we develop key abatement projects – including the Ventilation Air Methane Regenerative Thermal Oxidation (VAM RTO) system and a CMWG Power Station.
How we progressed in 2024
In 2024 we focused on strengthening our emissions reporting capability while advancing long-term reduction projects. Key achievement included:
Emissions Reporting Systems: We established comprehensive Scope 1 and 2 emissions tracking through our PI system and supported internal visibility via a custom-built Power BI dashboard.
Scope 3 Emissions Inventory: We completed our first Scope 3 emissions inventory, identifying the following material categories:
Category 9: Downstream transport;
Category 10: Processing of sold products
Category 11: Use of sold products
CMWG Venting Reductions: Our gas drainage team successfully reduced venting emissions by 60% compared to 2023. This was enabled by the installation of a blower plant, which collects drainage gas via a pipeline network and flares it at a centralised location.
Power and VAM Projects: Internal and environmental approvals were obtained for the 30MW Power Station and early engineering design began on the VAM RTO project. We also secured Commonwealth funding under the Powering the Regions Fund and entered into a Queensland Government partnership under the Low Emissions Investment Partnership.
Emissions Reduction Fund (ERF)
Options: An options paper was developed to explore potential ERF projects, including future carbon offset initiatives under the ACCU scheme.
While we did not progress our diesel reduction initiatives in 2024 vendor engagement has begun and we plan to revisit these opportunities in 2025.
The Year Ahead
In 2025, Kestrel will continue implementing the Decarbonisation Strategy, with a focus on the following activities:
Progress the 30MW CMWG Power Station to the next stage of development.
Advance the VAM RTO project, including completion of front-end engineering design and continued engagement with our workforce.
Flare more than 75% of total CMWG emissions.
Continue calculating and publicly reporting Scope 1, 2 and 3 emissions.
Identify commercially viable projects under the Emissions Reduction Fund (ERF).
Explore emissions reduction opportunities through diesel use reduction and potential offset projects.
Maintain rigorous monthly emissions reporting across the business.
Implement key actions outlined in the Decarbonisation Strategy.
Kestrel's FY23/24 Scope 1 and 2 Emissions Breakdown
Ventilation Air Methane Regenerative Thermal Oxidiser
The material emissions source of ventilation air emissions represents a significant challenge for the coal mining industry worldwide. The emissions in this category represent the very low concentrations of methane and carbon dioxide which are contained in the high volume flowrates of ventilation air, circulated throughout the underground workings to ensure the safe operation of the mine. With concentrations of methane ranging from 0.2% through to 0.6% the ventilation air is well under both the lower explosive limit of methane and the concentration at which the gas would ignite to combust the methane to carbon dioxide.
Kestrel’s priority is to minimise methane available to become part of the ventilation air flow through a significant, targeted and comprehensive gas drainage program. As part of this comprehensive drainage program, Kestrel pre-drains not only the extracted coal seam (German Creek seam), but also the overlying Corvus coal seam. Drainage of this overlying seam prior to mining minimises the gas available to migrate post mining through the goaf to the ventilation system. Even with this extensive drainage program, our Ventilation Air Methane (VAM) is the single largest emissions contributor.
In 2024 Kestrel continued to work with technology providers to progress the options for the safe destruction of the methane in the ventilation air emissions. This technology is untested in Queensland and Kestrel is committed to working with the relevant Regulators to ensure that progress is achieved only to the strictest of safety standards and controls.
Kestrel was delighted to be announced as the recipients of $37.2M in funding under the Australian Government’s Powering the Region Fund (The Hon Chris Bowen MP and The Hon Ed Husic MP, 2024).
In awarding the grant, the Minister for Climate Change and Energy Chris Bowen stated, “The grants unlock technologies that have not been deployed at scale in Australia, including cutting methane from the ventilation air shafts of underground coal mines […] By demonstrating these technologies, they can more quickly be rolled out across Australian industry.” Minister for Industry and Science Ed Husic noted, “Through these investments we're continuing to back Australian industry and help them transition to net-zero, because a country that makes things creates strong businesses and more highpaid jobs."
Coal Mine Waste Gas Power Station Project
In 2024 Kestrel took significant steps towards the installation of a 30MW CMWG power station. In maximising the beneficial use of the CMWG at Kestrel, the project will reduce Queensland’s greenhouse gas emissions from mining by more than one million tonnes of carbon dioxide equivalent. In doing so Kestrel has designed an emissions reduction project which maximises the beneficial use of the CMWG and delivers maximum methane destruction efficiency.
The 30 MW CMWG power station will generate enough energy to power the equivalent of more than 40,000 homes each year. The electricity generated will predominantly supply the network reliant Kestrel Coal mine operations, but excess power will be returned to the grid in lower demand periods.
Building on the momentum of successfully registering the CWMG Power station as an Australian Carbon Credit Unit (ACCU) Scheme Project, Kestrel obtained environmental approval to proceed with the power station in 2024. We also selected our delivery partner, Enernet Australia Pty Ltd.
Most significantly, the project is proudly supported by the Queensland Government’s Low Emissions Investment Partnerships (LEIP) program run by Queensland Treasury (The Queensland Cabinet and Ministerial Directory, 2024). The $520 million LEIP program is bringing forward investment in projects that will drive down emissions in Queensland’s highest emitting facilities (Queensland Treasury, 2024). The program’s focus is on reducing emissions from Safeguard Mechanism facilities in the metallurgical coal sector, which has a critical role in producing the steel needed for renewable technologies (Queensland Treasury, 2024). This funding is a key enabler of our decarbonisation strategy and we welcome the partnership with the Queensland Government and the LEIP program.
Water Stewardship
Kestrel understands the importance of responsible water stewardship in the Central Highlands and is focussed on efficient use and management of water at our operations.
Our Approach to Water Stewardship
Kestrel operates within the Fitzroy River Basin, situated in the mid-reaches of the Crinum Creek catchment, which drains into the Nogoa River near Emerald. Like much of Queensland’s Central Highlands, the region’s waterways – including Crinum, Junction, and Woolshed Creeks – are ephemeral, flowing only after significant rainfall and holding water temporarily in isolated pools during dry periods.
We recognise that responsible water management is essential to protecting these fragile ecosystems. Minimising the use of clean water and safeguarding the quality of water in receiving environments are key principles of
our approach. To support this, we’ve invested in robust water management systems and infrastructure designed to proactively manage water risks, maintain operational efficiency and minimise environmental impact.
How we progressed in 2024
Water management at Kestrel requires constant oversight, particularly as the operation must respond to both seasonal weather patterns and changing operational demands. Our site-wide water balance model supports this work, helping to guide our response during both periods of high rainfall and extended dry conditions.
A strong focus remains on ensuring that any water released to the environment
meets the strict quality standards set out in our Environmental Authority. We also continue to invest in infrastructure and processes that maximise water reuse and reduce overall reliance on raw water sources.
2024 Key Water Performance Metrics
Raw water consumed: 633 ML
Raw water consumed per tonne of product: 151 litres / tonne
Raw water consumed per tonne of product reduced by 20% between 2023 and 2024, largely due to water use efficiency improvements at the longwall
Water returned to natural environment under licence: 36 ML
2024 Water Stewardship Improvements
Increased the reverse osmosis plant capacity to reduce raw water usage and manage site water balance.
Upgrades implemented to water release infrastructure at the Kestrel North Rejects Dam to optimise release capability.
Detailed review of the site water balance commenced.
Upgrades to the surface water telemetry network were completed.
Improved delineation of mine affected and clean water catchments to assist in separating flows.
Commence feasibility study to examine excess water irrigation options.
Adjustments initiated to improve water evaporator operating efficiency
Opportunities to reduce raw water consumption will continue to be investigated in 2025, including examining the establishment of water use efficiency targets.
The Year Ahead
Planned Water Stewardship Activities in 2025 include;
Installation of flowmeter in upstream location of Woolshed creek.
Engineering Design to replace sewage treatment plants on site.
Install a pipe leakage detection system to identify and manage any potential uncontrolled release in high-risk areas.
Construction of instream erosion and sediment control within Junction Creek to manage risk.
Further enhancement to evaporation efficiency improvements.
Evaluate options to improve chiller condensate reuse.
Waste and Recycling
Our operations generate a range of residues and wastes which are a key focus of ongoing environmental risk management.
Our Approach to Waste
At Kestrel, we are committed to managing waste in a way that safeguards people, protects the environment and supports the circular economy. Our approach is guided by the Queensland Government’s waste hierarchy, which prioritises actions in the following order: avoid, reduce, reuse, recycle, recover (including energy), treat, and only as a last resort, dispose.
We generate both mineral and nonmineral waste and we actively track, report and investigate opportunities to manage waste consistent with the waste hierarchy.
Non-Mineral Waste
Kestrel’s operations produce a variety of non-mineral waste streams. These include:
Regulated waste, such as oils, solvents, used batteries, sewage, tyres and other chemical waste.
Non-regulated waste, including general office and crib room waste,
construction debris, packaging materials, scrap steel and consumables from underground and surface activities.
Where possible, we apply the waste hierarchy to reduce the volume of non-mineral waste and extend the life of materials:
Avoid & Reduce: Bulk diesel tanks have been installed across site, reducing the need for disposable containers, transport frequency and spill risk.
Reuse & Recycle: Equipment such as mine hoses and timber supports are refurbished for reuse. Steel, waste oil, paper and cardboard are recovered and sent off-site for recycling. A reuse cage has also been introduced to capture tooling and consumables for second-life applications.
Treatment: A portion of mine-affected water is treated for reuse, supporting site-wide water efficiency.
Waste handling across the site is supported by licensed waste contractors
who manage the safe collection, storage, tracking and disposal of all regulated waste.
Mineral Waste
The largest waste stream produced at Kestrel comes from coal processing activities. Once mined, raw coal is transported to the Coal Handling and Preparation Plant (CHPP), where impurities – primarily rocky, non-coal material – are removed. The resulting coarse and fine reject materials are classified as mineral waste.
These rejects are stored in the purposebuilt Co-disposal Storage Facility (CDSF). This facility is managed in accordance with a detailed Operational Management Plan that includes:
Independent oversight by an Engineer of Record, who verifies operational compliance with safety and design specifications.
Routine inspections and monitoring to ensure the facility continues to operate within approved environmental standards.
How We Progressed in 2024
In 2024, we delivered a range of upgrades and initiatives aimed at improving the performance and efficiency of our waste management systems:
Upgraded the waste management area to reduce litter, improve sorting capabilities and enhance storage standards. This included installation of dust barriers, new signage and scheduled grading to minimise equipment vibration.
Installed bulk diesel tanks at four locations, helping reduce packaging waste and the risk of spills.
Added regulated waste bins at drill rigs to improve segregation and reduce contamination of general waste.
Refurbished and reused mine hoses, significantly reducing the need for new materials.
Continued the scrap steel sales program to promote reuse.
Improved workforce awareness of waste practices through targeted education campaigns.
Trialled a gumboot refurbishment program, exploring options for reuse of a high-volume store item.
Key CDSF developments in 2024 included:
Completion of a spillway capacity assessment at the RRWD dam.
Revision of the final landform design for the CDSF in support of the proposed Kestrel West Extension.
Improve waste storage and recycling through better waste segregation.
Construction of a sub-surface seepage interception trench at RRWD to create a closed loop system.
Upgrade spillway at RRWD.
Upgrade CDSF piezometer telemetry hardware.
Continue waste management area upgrades.
Continue investigation of bulk storage options for high use fuels.
Land Use and Biodiversity
Kestrel proactively manages the land to support biodiversity conservation and enhance land productivity.
Our Approach
At Kestrel, we recognise the vital role biodiversity plays in supporting healthy ecosystems and resilient landscapes. We also understand our responsibility to manage biodiversity throughout the full life cycle of our operations – from exploration through to closure and rehabilitation.
As custodians of approximately 19,000 hectares in Queensland’s Central Highlands, we manage land in a way that reflects its ecological value, its role in supporting productive agricultural and grazing use and our underground mining operation. Much of our land remains undisturbed and is leased for commercial grazing and cropping, creating shared value with local agricultural producers. Where operational disturbance occurs, we undertake progressive rehabilitation and aim to return land to a safe, stable, and productive condition. Rehabilitated areas are monitored for vegetation establishment, erosion control and suitability for future agricultural or grazing use.
A key focus of our biodiversity management is maintaining and enhancing riparian ecosystems. These sensitive areas, which often align with ephemeral creeks and watercourses, support a diversity of flora and fauna and play a critical role in maintaining regional landscape health.
Across our landholdings, we actively manage threats to biodiversity, including weed invasion and feral animals, while supporting the conservation of native species and communities, such as the endangered native bluegrass. We work collaboratively with lessees and other stakeholders to uphold shared land management responsibilities and to ensure positive outcomes for both biodiversity and land use productivity.
Land Use
Kestrel supports a diverse local economy by ensuring land not involved in mining remains in productive use. The majority of our landholdings are leased for agricultural and grazing purposes, contributing to regional economic resilience while aligning with our sustainable land management approach.
Total land holdings: 19,283hectares
Leased to agriculture: approximately 17,500 hectares
Currently involved in mining activities: approximately 1,619 hectares
Ratio of land rehabilitated to land disturbed for mining: approximately 2:1
How we progressed in 2024
In 2024, we made meaningful progress in managing both land use and biodiversity across our operations.
Key activities undertaken by Kestrel and its lessees in 2024 included:
Terrestrial and aquatic ecology surveys to monitor biodiversity and guide future management
Targeted weed spraying across priority areas to reduce invasive species pressure
Control of pest animals such as pigs and foxes which threaten native species and pasture condition
Fencing maintenance to protect rehabilitated areas and grazing areas
Ongoing work to support the conservation of native bluegrass species
The Year Ahead
In 2025 we intend to build on our commitments to biodiversity, identifying opportunities to protect and enhance the existing environment for our endemic fauna and flora.
Kestrel West Mine Extension
Supporting Jobs, Regional Growth and Responsible Development
In 2024, Kestrel took an important step toward securing the longterm future of our operations
administration facilities, workshops, processing plants and transport systems – the project
at $2.27 billion nationally and over $1 billion for Queensland. These benefits reinforce Kestrel’s
