Olive Downs Coking Coal Go-ahead

Filed under Mining, News ~ by Press on  16 May 2020

Olive Downs Coking Coal Project Gets Federal Environmental Approval.

Pembroke Resources (“Pembroke”) gained approval from the Department of Agriculture, Water and the Environment under the Environment Protection and Biodiversity Conservation (“EPBC”) Act for its Olive Downs Coking Coal Project (“Olive Downs”) in Central Queensland.

The EPBC approvals, together with the grant of the Environmental Authority (“EA”) by the Queensland Government in 2019, provide a clear pathway to grant of the Mining Leases and to start construction.

Olive Downs project in Queensland’s Bowen Basin approximates the size of Adani’s, and could require the clearing of more than 50 square kilometres of koala habitat – about the size of Sydney Harbour. The site also encompasses a dozen significant wetlands. No environmental groups submitted during public consultation.

Pembroke claims the project will create over 1,000 new jobs in the region, and says project is a Tier One steelmaking coal project in an established mining basin with access to established infrastructure.

The Federal environmental approvals authorise activities for Olive Downs’ 79-year mine life and provide the conditions for the operation of the mine and the associated infrastructure corridors, including environmental obligations.

This is an exciting time for the Company and the region’s wider community,” said Pembroke Chairman and Chief Executive Officer Barry Tudor.

The EPBC approvals, and the EA, which was granted last year, represent key milestones for the Project. The next key milestone is securing the grant of the mining leases, which will enable us to commence construction. We expect these mining leases to be granted in the coming months.”

Mining Leases – Next Stage

While the planning and project enabling work predates COVID-19, the mine could provide much needed local stimulus during the recovery, with significant economic benefits for Queensland and the creation of up to 500 jobs during construction and over 1,000 new jobs when the project reaches full operation.

The steelmaking coal project is also expected to generate around $5.5 billion in royalties for the Queensland Government over 79 year life of the mine. 

The Olive Downs Coking Coal Project has 838 million tonnes (Mt) of Open Cut JORC Resources and 514Mt of Open Cut JORC Reserves of a globally recognised product that is similar to other well accepted Bowen Basin brands. Pembroke is planning to start construction following the grant of the mining leases and forecasts the project to produce up to 15Mtpa saleable coal over the mine’s life.

The Olive Downs Coking Coal Project is 100% owned by Pembroke, an Australian steelmaking coal company and is backed by major shareholder, Denham Capital, a global energy and resources private equity firm.

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