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AAP
AAP
Derek Rose

China-linked firm takes majority stake in Qld coal mine

Yancoal Australia will pay $2.6 billion for an 80 per cent stake in the Kestrel coking coal mine. (Kelly Barnes/AAP PHOTOS)

A China-linked group is buying a majority stake in Australia's largest underground coal mine in a deal worth $US2.4 billion ($3.4 billion) to boost its portfolio.

The stock exchange-listed Yancoal Australia, majority owned by China's Yankuang Energy Group, will pay $US1.85 billion ($2.6 billion) upfront for an 80 per cent stake in the Kestrel coking coal mine northeast of Emerald in central Queensland.

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