Major Aussie coking coal project goes underway: 15 mtpa capacity eyes China, India markets

Steel Insights Bureau

Pembroke’s 15-million tons a year at peak capacity metallurgical coal project has received Australia’s Queensland government approval recently and is largely being seen as an economic stimulus for the economy with potential to create 1,000 jobs once the mining project is complete.

The output would be sent by rail to Dalrymple Bay coal terminal for export to markets in Japan, China, India and also South Korea.

“Pembroke Resources is developing the Olive Downs Coking Coal Project into a world class independent and large-scale producer of metallurgical coal, delivering high quality coking coal and PCI products to key markets including Japan, South Korea, China and India,” the company said.

Mining Leases

The granting of the Olive Downs leases follows approvals from the department of agriculture, water and the environment under the Environment Protection and Biodiversity Conservation (EPBC) Act in early 2020

According to Pembroke Chairman and Chief Executive Officer Barry Tudor, the mining lease approvals were the final approval hurdle to commence the first stage of the project.

The Olive Downs project is being developed to produce up to 15 mtpa of saleable coal over its 79 year mine life.

Pembroke claims it consulted extensively with the local community over the past four years with a focus on creating local jobs and proactively engaged with all stakeholders asscciated with the project including establishing a strong relationship with Barada Barna as the traditional owners of the land, with whom the miner has an Indigenous Land Use Agreement and Cultural Heritage Management Plan in place,” Tudor said.

With some 838 mt of open cut JORC reserves, Olive Downs is strategically positioned in the Bowen Basin and with access to infrastructure.

“The project will supply steelmaking coal to markets globally and continues to attract strong interest within the industry across Asia, including Japan, Korea and China. Olive Downs has already assembled the key elements required to commence construction following the grant of the Mining Leases, including securing access to power, water, rail and port, even as finance and offtake partners are finalised,” the company said in a release.

Local stimulus

The mine is expected to provide much needed local stimulus in the recovery from the impact of the pandemic, with significant economic benefits for Queensland, including the creation of up to 500 jobs during construction.

The project will also provide opportunities for local and regional suppliers, contractors, service providers and the wider business community.

“In addition to employment in, and its contribution to, the local economy of Central Queensland, the steelmaking coal project is also expected to generate around $5.5 billion in royalties for the Queensland Government over the life of the mine,” the release issued by the company said.

The project takes resources investment in Queensland over the past five years to $21 billion, creating 8000 jobs, the government said.

Member for Mackay Julieanne Gilbert said the granting of final approvals meant Pembroke could begin delivering more jobs for the Mackay region.

“Olive Downs can now proceed to deliver up to 500 construction jobs building the mine and its associated infrastructure including rail and transmission lines, water pipelines and access roads,” Ms Gilbert said.

When at its peak production, and over its 79-year life, the mine will go on to employ up to 1000 workers in the local region, including in and around Moranbah and Dysart.

The project is expected to contribute an estimated $8 billion to the local economy and more than $10 billion to Queensland’s economy over its 79-year lifespan.