Yancoal Australia (ASX:YAL, HKG:3668) completed its acquisition of Kestrel Coal Group, which holds an 80% stake in the Kestrel coal mine in Queensland, for upfront cash consideration of $1.85 billion, according to a Thursday filing with the Australian bourse.

Yancoal funded the consideration through a combination of available cash and an initial draw on its $1.2 billion five-year syndicated loan facility, per the filing.

The payment of contingent cash consideration of up to $550 million remains subject to the relevant benchmark coal price surpassing $225 per tonne in any of the first five years following completion, the company said.

Yancoal's joint venture partner, Mitsui, owns the remaining 20% interest in the Kestrel mine.

Shares of Yancoal fell 3% in recent Thursday trade in Australia.