The Olive Downs coking coal project, which is situated in the Bowen Basin in Queensland, is set to become on the largest steelmaking coal mines in Australia, creating up to 1,000 jobs ongoing (and a minimum of 700 more in the construction phase).
Pembroke Resources has received a $175 million loan from the Northern Australia Infrastructure Facility (NAIF) to develop the project. The initial production of coal is expected to be around 4 million tonnes per year and once it reaches peak production it is expected to produce 15 million tonnes of coal per year.
The Australian Mining Review has reported that Barry Tudor, the Pembroke chairman and chief executive officer stated that Pembroke is dedicated to managing its emissions with the Olive Downs project.
“Olive Downs will truly be a 21st Century mine built to 21st Century standards which is designed to meet and exceed the most stringent environmental obligations whilst creating local jobs,” Tudor said.
“As a new mine, without legacy issues, Pembroke’s Olive Downs Mine can be the vanguard for others in the industry.
We will proactively manage our greenhouse gas emissions and reduce our Scope 1 and 2 emissions using technology and innovation. Olive Downs sits in the lowest quartile of emissions intensity for global steelmaking coal mines.”
This includes rail and transmission lines, water pipelines, access roads and a coal handling preparation plant.
The Australian Mining Review went on to say that the NAIF chief executive officer Chris Wade said the project will greatly strengthen the local economy.
“We are delighted to support a major job creating project in one of central Queensland’s key industries,” he said.
“With more than $3 billion in investment now committed to job creating projects, NAIF is supporting economic growth in northern Australia.
“Helping the Olive Downs project deliver many hundreds of locally-based jobs to the region is something we are delighted to do.”
Mine construction will take 18 months and will contribute $10 billion to Queensland’s economy across its lifespan.
The funding was passed by Minister for Resources, Water and Northern Australia Keith Pitt.
According to Pitt, metallurgical coal is an important commodity for Australia’s export market.
“Pembroke Resources’ Olive Downs project will create jobs and opportunities for central Queensland and the nearby town of Moranbah, and will generate royalties and export income for Queensland and Australia for many years to come,” he said.
“Metallurgical coal is crucial for steelmaking, and is an important commodity for Australia’s trading partners to help support their economic development.
“The NAIF investment will be an important contribution to a project which is expected to return more than $10 billion to the Australian economy over the mine’s lifetime, and provide jobs for people in Moranbah, Dysart and Mackay.”
Coal mined from Olive Downs will be transported by rail to Dalrymple Bay’s coal terminal to be exported to Asian markets.