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QLD Government approves development of $1bn Olive Downs Project

Projects

olive-downs-coking-coal-project
Posted by Monica Gameng

Pembroke Resources’ $1 billion Olive Downs metallurgical coal project marks a new major milestone, with Queensland’s independent Coordinator-General approving the development of the project located 40 kilometres south-east of Moranbah.

The approval, however, comes with strict conditions that will ensure local employment as well as management of potential impacts on the environment.

“The mine is expected to create 1,000 operational jobs and 500 jobs during construction.

“The project will contribute an estimated $8 billion to the local economy and more than $10 billion to the Queensland economy,” Premier Annastacia Palaszczuk said.

Metallurgical coal produced in the Bowen Basin has a high market demand in Asia, with it being used to produce steel products.

The billion dollar 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
  • Raw water pipeline that connects to the Eungella pipeline network
  • A private access road
  • Electricity transmission line
  • Wastewater and sewage treatment plants

In December of last year, CIMIC Group companies CPB Contractors and Sedgman were awarded the contract to deliver the coal handling and preparation plant.

“The project will produce up to 15 million tonnes of metallurgical coal per year for export via the Dalrymple Bay Coal Terminal near Mackay.

“The proposed project includes coal handling and crushing facilities at the mine’s Olive Downs South and Willunga precincts, a rail link to transport coal to the Dalrymple Bay Coal Terminal and a water pipeline and power transmission line,” Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick said.

olive_downs_map_v04Project location (source: Pembroke Resources)

The Olive Downs metallurgical coal project is the first project to complete a social impact assessment - as part of the environmental impact statement - under the Strong and Sustainable Resource Communities (SSRC) Act.

“The SSRC Act requires the proponent Pembroke Resources to encourage workers to live in local towns like Moranbah, Nebo, Dysart and Middlemount and reduce the reliance on fly-in, fly-out workers. Pembroke has committed to recruiting locals and people from other regions who might like to move to local towns,” Member for Mackay and Minister for State Development Julieanne Gilbert said.

Pembroke Resources Chairman and CEO Barry Tudor said through a statement: “Our focus is on workers living locally, including in the local economies of Moranbah, Nebo and Dysart and hiring locally from the surrounding towns of Central Queensland. There will be no fly-in, fly-out rosters.”

Construction of the Olive Downs project is anticipated to begin in 2020, subject to Commonwealth Government approval. The first stage of the project - valued at $450 million - is expected to produce 4.5 million tonnes of metallurgical coal a year.

The Olive Downs metallurgical coal mine is projected to have a production life of about 80 years.

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Source: Queensland Government (1, 2); Australian Mining; Pembroke Resources; The Business Times

Monica Gameng

Monica Gameng

Monica is a Marketing Assistant who handles blog content creation. She has a background in IT and has passion for research and writing.