The Australian Government last week announced it would support a world class new metallurgical coal mine in Queensland’s Bowen Basin, with its Northern Australia Infrastructure Facility (NAIF) approving a loan of $175 million to Pembroke Resources’ major job-creating Olive Downs Mine.
Situated in the coking coal capital of the world, Olive Downs will create around 700 jobs during construction, with more than 1000 employment opportunities once at peak production.
“The announcement of NAIF funding brings Pembroke Resources a step closer to delivering this nationally significant project at a time when Australia needs it most,” Steve Knott AM, Chief Executive of AREEA, said.
“As the economy pushes through the disruption of COVID-19, it is now more critical than ever for governments to support large private sector investments in any way they can. The Australian Government should be applauded for providing finance to exactly the type of project the NAIF was created to support.
“The Government’s support also sends a positive signal to the investment community that Australia is open for business when it comes to new major resources and energy projects.
“Olive Downs will be a technologically-advanced mine, providing high quality coking coal to the global steel industry. It is a shining example of the high-value projects which underpin our industry’s bright future.
The mine is forecast deliver around $10 billion to the state economy over the life of mine, as well as provide vital stimulus for businesses along the supply chain and in regional communities.”
Construction of the Olive Downs Mine is expected to take 18 months, with Pembroke Resources providing opportunities for workers to live in nearby towns Moranbah, Dysart and Mackay.
The company is also partnering with the Barada Barna Aboriginal Corporation to deliver training and employment initiatives within Traditional Owner communities.
With this latest investment, NAIF has committed more than $3 billion to 26 infrastructure projects across northern Australia.
NAIF CEO Chris Wade said more than $3 billion in investment now committed to job creating projects, supporting economic growth in northern Australia.
Pembroke Resources Chairman and CEO Barry Tudor said the project “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”.
Minister for Resources, Water and Northern Australia Keith Pitt said the loan of $175 million would support the mine’s first stage of development which includes rail, and transmission lines, water pipelines, access roads and a coal handling preparation plant,” Minister Pitt said.
“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.”
