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$1bn Olive Downs Coking Coal Project in QLD reaches new milestone


Posted by Monica Gameng

Major construction on the $1 billion Olive Downs Coking Coal Project in Central Queensland is one step closer to commencing as Pembroke Resources secures the Environmental Authority (EA) from the Department of Environment and Science.

“The Company now looks forward to receiving Federal Government approval under the Environment Protection and Biodiversity Conservation Act, to the grant of its Mining Leases so that construction and jobs can commence.

“The grant of the EA represents the most important milestone for the project so far and provides a clear pathway towards commencement of construction and first coal,” Pembroke Resources Chairman and Chief Executive Officer Barry Tudor said.

The EA will authorise the activities to be undertaken during the mine’s 79-year mine life and it also provides a number of conditions for Olive Down’s operations which includes environmental obligations.

Mr Tudor added: “Pembroke has delivered an outstanding standard of assessment and will deliver exceptional rehabilitation outcomes in the development of Olive Downs. In addition, we have acquired a significant area of land to dedicate to environmental outcomes. These areas will provide for the protection of native flora and fauna habitat in perpetuity, with the environmental area increasing over the life of the mine to become significantly more area than we started with.”

In May of this year, Queensland’s independent Coordinator-General approved the development of the coking coal mine. You can read more about it here.

The $1 billion Olive Downs Coking Coal Project is going to be located approximately 40 kilometres south-east of Moranbah, and the project will include:

  • An open-cut metallurgical coal mine
  • A coal handling and preparation plant
  • An 18-kilometre rail spur and on site rail loop
  • A raw water pipeline connecting to the Eungella pipeline network
  • Private access roads
  • Electricity transmission line
  • Wastewater and sewage treatment plants

olive_downs_map_v04Project location (source: Pembroke Resources)

Construction of the mine is set to commence immediately following the grant of Mining Leases and Pembroke Resources has already assembled key elements of the project that will make this possible - this includes access to power, water, rail and port.

In addition, Pembroke Resources has awarded a $184 million engineering, procurement and construction contract to CIMIC Group companies CPB Contractors and Sedgman for the delivery of the coal handling and preparation plant at the Olive Downs site. Read more about it here.

This billion dollar project is anticipated to create up to 500 jobs during its construction and up to 1,000 jobs once it is operational. Olive Downs will also generate opportunities for local as well as regional suppliers, contractors, service providers and businesses.

Pembroke Resources will be providing its mine workers with opportunities to live in nearby towns such as Moranbah, Nebo and Dysart, and the company is going to fully commit to “building sustainable futures for people in the communities in which Olive Downs operates”.

The project will also provide a significant contribution to royalty payments that will help build vital infrastructure for Queensland.

“This is more good news for Queensland’s coal industry. It’s high-quality coal, close to ports and highlights the wealth of opportunities Queensland can generate from the largest exporting coking coal basin in the world, the Bowen Basin.

“The Isaac region is a heartland for our resources sector, creating so much of the wealth that benefits our state. This project will be another valuable addition to Queensland’s world-leading resources sector,” Queensland Resources Council Chief Executive Ian Macfarlane said.

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Source: Pembroke Resources; Australian Mining; Creamer Media’s Mining Weekly; World Coal; NS Energy; Queensland Resources Council

Monica Gameng

Monica Gameng

As PlantMiner's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1000 posts. She truly is an industry expert. Monica's passion for educating and inspiring readers saw the PlantMiner blog recognised by Feedspot as one of the Best Australian Construction Blogs in 2018 and 2019. PlantMiner is Australia's largest online construction marketplace. Sign up as a vendor to find and engage with civil and commercial contractors across Australia. Alternatively, if you're looking for plant and equipment you can compare equipment and subcontractor quotes from vendors near you in just a few steps.