Don’t be shy: Say a quiet hello to the state’s newest coal mine
Pembroke Resources has announced that mining has started at Queensland’s newest coal mine, the $1 billion Olive Downs project in central Queensland.
First dirt has been achieved at Pembroke's Olive Downs mine (Pic: Pembroke)
You may have never heard of it because Pembroke has strategically avoided any fanfare since it started the approval process for the 15 million tonne-a-year mine three years ago. That strategy has meant it had flown under the radar of the activists.
The State Government even boasted that not one environmental group put in a negative submission against this mine during consultation on the environmental impact statement.
Olive Downs managed to get over the line in the shadows of Adani and New Hope, helped somewhat by the fact that it is predominantly a coking coal project for steel production.
Pembroke announced the official moving of “first dirt” yesterday, which is not the actual digging of coal. That will happen later in the year.
There was a private celebration with executives and the site-based team. No fanfare, no politicians to cut a ribbon, no Land Court cases, just a post on LinkedIn.
But this is a major project. At 15 million tonnes a year it is considerably bigger than the Bravus (Adani) thermal coal mine and there aren’t too many of those left.
There are other major coal mines in the Co-ordinator General’s approval process, like BHP’s joint venture $1 billion Blackwater South and the $2 billion Peak Downs extension, but the company has stopped investing in Queensland in the wake of last year’s royalty hike so their future remains in doubt.
Glencore’s $1 billion Winchester South coal mine is also in line for approvals, but it’s a brave company that enters those waters now. Not only are there the environmental concerns about coal but sovereign risk is a live issue in Queensland since last year’s royalty hike.
“The official moving of first dirt is the achievement of yet another major milestone for the Olive Downs Complex,” Pembroke said in its brief announcement yesterday.
“The Pembroke and Thiess partnership will solidify the Olive Downs Complex as a world-class, modern mine that can efficiently and cost-effectively supply high-quality steelmaking coal for decades to come,” Pembroke said.
“First coal is expected to be mined in late 2023 with the official opening of the complex to be held in early 2024.”
