Pembroke stitches up funding deal for major coal development
Pembroke Resources has struck a deal for $500 million in financing for its Olive Downs coal project in central Queensland.
It follows $175 million in funding from the Northern Australian Infrastructure Facility and the granting of a mining in September 2020.
The project was initially expected to start production in 2020.
Pembroke chairman and chief executive Barry Tudor said the funding was a major milestone for the project.
“With total development costs of approximately $1 billion, Olive Downs is expected to begin producing coal for steelmaking as early as 2023 and is expected to provide much needed local stimulus in the recovery from the impact of the COVID-19 pandemic, with substantial economic benefits for Queensland, including the creation of up 500 jobs during construction,” Tudor said.
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“Pembroke is committed to providing workers with an opportunity to live in towns near the mine including Moranbah and Dysart and is building sustainable futures for people in the communities in which Olive Downs operates.
“The benefit to the Queensland economy and the Central Queensland region is significant, with the project forecast to contribute more than $10 billion over the life of mine.”
Olive Downs has a reserve of 514 million tonnes of high-quality metallurgical coal. It will initially operate at 4.5 million tonnes a year, expanding to 15Mtpa capacity, with low-cost production and a long life mine estimated at 80 years.
Pembroke’s biggest investor is Denham Capital. It seeded Pembroke with $US200 million in 2014.
Pembroke paid $120 million to acquire 100 per cent of the Olive Downs complex from Peabody and China’s CITIC.
