Olive Downs Steelmaking Coal Project
Loan towards to the construction and development of the Olive Downs Steelmaking Coal Project (Investment Decision: April 2021)
About the Project
Pembroke Resources’ Olive Downs Coking Coal Project, situated in the Bowen Basin 40km south-east of Moranbah, will create more than 1,200 jobs.
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.
NAIF’s financing of up to $167.5 million will be used in the first phase of construction and used to build roads, water infrastructure, rail, power supply infrastructure and a coal handling preparation plant.
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.
Note: Financial assistance to the project is subject to the finalisation of the Queensland Government’s consideration and agreement for the approved funds to be advanced.
The project is forecast to contribute more than 1,200 jobs during construction and operations. The benefit to the Queensland economy and the Central Queensland region is forecast to reach more than $6 billion during the construction phase that NAIF is supporting (with the proponent forecasting that the project will contribute more than $10 billion in public benefit over the life of mine).
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