Olive Downs Coking Coal Project Receives Federal Environmental Approval

Pembroke Resources (“Pembroke”) has received approvals 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 the commencement of construction and creation of over 1,000 new jobs in the region.

The Federal and State approvals endorse the Company’s intent to deliver strong environmental outcomes. The project pathway has also benefited from being 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.

Pembroke Chairman and Chief Executive Officer Barry Tudor said that the Company is pleased with the recognition of the strong environmental planning it has put in place and looks forward to the grant of its Mining Leases so that construction and employment can commence.

“This is an exciting time for the Company and the region’s wider community. 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,” Mr Tudor said.

Mining Leases – Next Stage

Olive Downs has now assembled all the elements required to commence construction following the grant of the Mining Leases, including access to power, water, rail and port.

This includes investing considerable time consulting with the local community throughout the approvals process, focusing on creating opportunity for local jobs, engaging with stakeholders, and establishing a strong relationship with Barada Barna as the traditional owners of the land, having an Indigenous Land Use Agreement in place.

While the planning and project enabling work predates COVID-19, the mine is expected to 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.

In addition to employment and its contribution to the local economy, the steelmaking coal project is also expected to generate around $5.5 billion in royalties for the Queensland Government over the life of the mine.

Pembroke will provide workers with an opportunity to live in towns near the mine including Moranbah and Dysart and is fully committed to building sustainable futures for people in the communities in which Olive Downs operates. Beyond the new jobs at the mine, there will also be significant opportunities for local and regional suppliers, contractors, service providers and businesses.

The potential for Olive Downs to make such a significant contribution in a relatively short time frame is principally due to the mine being in a well-established coking coal area with access to existing infrastructure for power, water and rail. Strategically positioned in the Bowen Basin, the project will supply steelmaking coal to markets globally and has already attracted strong interest within the industry across Asia, including Japan, Korea and China.

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 for the commencement of site construction following the grant of the mining leases and is forecasting the project to produce up to 15Mtpa saleable coal over its 79 year mine life.

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

Source: Pembroke Resources