PERTH (miningweekly.com) – The Northern Australia Infrastructure Facility (NAIF) has approved a A$175-million loan to support privately held Pembroke Resource’s development of its Olive Downs metallurgical coal mine, in Queensland.

Olive Downs has a Joint Ore Reserves Committee-compliant reserve of 514-million tonnes of high-quality steelmaking coal and will initially operate at 4.5-million tonnes a year, expanding to 15-million-tonnes-a-year capacity, with low-cost production and a long life mine estimated at 80 years.

Minister for Resources, Water and Northern Australia Keith Pitt said the A$900-million project in the Bowen basin will support up to 700 jobs during construction and more than 500 new jobs for the region when fully operational.

“NAIF has approved a loan of A$175-million to support the mine’s first stage of development which includes rail, and transmission lines, water pipelines, access roads and a coal handling preparation plant,” 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.

“Metallurgical coal is crucial for steelmaking, and is an important commodity for Australia’s trading partners to help support their economic development.

“The NAIF investment will be an important contribution to a project which is expected to return more than A$10-billion to the Australian economy over the mine’s lifetime, and provide jobs for people in Moranbah, Dysart and Mackay.”

The coal will be taken by rail to the coal terminal at Dalrymple Bay for export to key markets in Asia.

Pembroke Resources chairperson and CEO Barry Tudor said that the Olive Downs workforce will be sourced from the region as a priority and not be 100% fly-in, fly-out.

“Pembroke is committed to providing jobs for local and regional communities and will give genuine choice to employees regarding living locations. We also look forward to partnering with many of the local and regional businesses and suppliers to the mining industry in our procurement activities. Olive Downs is also the first mine to be approved under the state government’s Strong and Sustainable Communities Act.”

“Olive Downs will truly be a twenty-first-century mine built to twenty-first-century standards, which is designed to meet and exceed the most stringent environmental obligations while creating local jobs,” Tudor said.

“As a new mine, without legacy issues, Pembroke’s Olive Downs mine can be the vanguard for others in the industry. We will proactively manage our greenhouse-gas emissions and reduce our Scope 1 and 2 emissions using technology and innovation.”

Tudor pointed out that the mine was in the lowest quartile of emissions intensity for global steelmaking coal mines, and was surrounded by large conservation areas, which measured more than 30 000 ha, for perpetual offset to protect fauna and flora.

“We are also committed to progressively rehabilitating the disturbed areas of the mine site from the start of production,” he added.

Assistant Minister for Northern Australia Michelle Landry said the investment was great news for the local economy and underlined the Australian government’s support for jobs and economic development in northern Australia.

“NAIF has committed more than A$3-billion to 26 projects across northern Australia creating new opportunities and supporting thousands of jobs for people across the north,” Landry said.

“In Queensland, NAIF has approved A$1.2-billion in loans to 11 projects, supporting jobs across the state.

“The Olive Downs project will create a jobs boom in Central Queensland, generate economic growth and reinforce the benefits of living and working in Australia’s north.”

The Queensland Resources Council has welcomed the NAIF’s decision, with CEO Ian Macfarlane commending Pembroke’s commitment to building and operating a coal mine to the highest environmental standards and to providing local jobs and supply chain opportunities.

“This is an opportunity for a new metallurgical coal mine to be built in Queensland using the best technology available to proactively manage and reduce emissions and deliver a whole new level of excellence in workplace health and safety,” he said.

“Olive Downs is exactly the type of project the Queensland economy needs to work and earn its way out of Covid-19, and I congratulate the state government for giving this project the chance to be assessed and ultimately approved through all the necessary regulatory channels.