The Northern Australia Infrastructure Facility (NAIF) will provide a $175 million loan to Pembroke Resources’ Olive Downs Coking Coal Project.
Olive Downs, situated in the Bowen Basin, 40 kilometres south east of Moranbah, is forecast to create up to 700 jobs during construction and more than 1,000 new jobs in the region once at peak production.
Ramping up from an initial production of 4.5 million tonnes of steelmaking coal per annum, at peak production Olive Downs is forecast to produce up to 15 million tonnes per annum.
The coal will be transported by rail to the Dalrymple Bay Coal Terminal for export to key international markets like Japan, South Korea, Vietnam, and India.
Olive Downs has a JORC Reserve of 514 million tonnes, making it one of the largest steelmaking coal reserves in Queensland.
Pembroke has received Environmental Authority and Mining Leases from the Queensland Government along with the Environmental Protection and Biodiversity Conservation approval from the Commonwealth Government.
NAIF’s loan will fund infrastructure during the first phase of construction at the mine including rail and transmission lines, water pipelines, access roads and a coal handling preparation plant.
NAIF’s investment has passed the non-veto phase by Minister for Resources, Water and Northern Australia, the Hon. Keith Pitt MP.
With this latest investment, NAIF has committed more than $3 billion to 26 infrastructure projects across northern Australia.
NAIF CEO, Chris Wade, said: “We are delighted to support a major job-creating project in one of central Queensland’s key industries. 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.”
Construction of the mine is expected to take 18 months and the project is expected to contribute an estimated $10 billion to the Queensland economy over its lifespan, with additional royalties paid to the Queensland Government.
Pembroke has committed to providing workers with an opportunity to live in towns near the mine including Moranbah, Dysart and Mackay.
As part of Pembroke’s Indigenous Engagement Strategy – a condition of NAIF’s funding – the company has committed to strengthen their relationships with the local Traditional Owners, the Barada Barna people. This includes continuing support of cultural heritage on country and developing training and employment initiatives with the Barada Barna Aboriginal Corporation.
