Pembroke Resources has secured up to $131.3m (A$175m) in government support for the development of the Olive Downs metallurgical coal mine in the Bowen Basin in Central Queensland, Australia.

The loan from the Northern Australia Infrastructure Facility (NAIF) has a tenor of ten years.

Entailing an investment worth $643m (A$1bn), the project is expected create between 500 to 700 jobs during the construction phase, as well as more than one thousand jobs at peak production.

Pembroke Resources chairman and CEO Barry Tudor said: “The benefit to the Queensland economy and the Central Queensland region is significant, with the project contributing more than $10bn over the life of mine.”

With an anticipated mine life of 80 years, the Olive Downs project has Joint Ore Reserves Committee (JORC) Reserve of 514Mt of high-quality steelmaking coal.

The project is expected to initially operate at 4.5 million tonnes per annum (Mtpa). The capacity will eventually increase to 15Mtpa.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Pembroke has already received an environmental authority and mining lease from the Queensland government and the Commonwealth Government’s Environmental Protection and Biodiversity Conservation approval for the project.

However, environmental groups have criticised the latest funding by NAIF, calling it ‘deeply irresponsible’.

Tudor added: “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.

“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.”