How Olive Downs mine will bring 1700 new local jobs, $10b to economy
A new $1 billion Queensland mine is forecast to begin in 2023, contribute $10 billion to the economy and employ 1700 workers, but its boss has ruled out one key factor that has been a major attribute of most Australian mines for years.
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Ground will break today at the Olive Downs metallurgical coal mine which is expected to create up to 1700 jobs and generate $10 billion in economic activity over its 79-year lifetime.
The $1bn project, between Moranbah and Dysart, has ruled out fly-in fly-out rosters, seeking to employ locals from surrounding towns to fill the majority of its roles.
Olive Downs will create between 500 to 700 jobs during construction and more than 1000 jobs once at full production.
The project, which is forecast to begin in 2023, will add to Australia’s exports, shipping high-quality steelmaking coal to key markets including Japan, South Korea and India.
Pembroke Resources says it will also protect flora and fauna conservation areas about 87 times the size of Brisbane CBD.
The project faced an exhaustive environmental process to mitigate major concerns raised about waterway impacts and huge mine pits that could be leftover when the project shuts down.
The mine was granted the last of the major approvals required to start construction during the 2020 Queensland state election campaign.
Pembroke will today turn the first sod on the site with a string of politicians present, including Deputy Prime Minister Barnaby Joyce.
The Northern Australia Infrastructure Facility will provide a $175m loan as part of the financing for the $1bn project.
The NAIF loan, to be repaid over 10 years, will fund infrastructure during the first phase of construction at the mine including rail and transmission lines, water pipelines, access roads and a coal handling preparation plant.
Pembroke chairman and CEO Barry Tudor said the company was committed to keeping its workforce “as local as possible”.
“The high-quality steelmaking coal that will be produced from our mine will contribute to national and state economies as well as much-needed infrastructure across the world, delivering economic benefits and jobs from the grassroots to a global scale,” he said.
“Olive Downs is already creating valuable jobs throughout the region with early works, from cleaners to sign-writers to mining professionals, and we look forward to adding to workforce numbers and building even stronger partnerships with local communities.
“We will continue to actively encourage a predominantly locally-based workforce because we know this produces the best outcomes for communities and businesses.”
New forecasts — released in the Resources and Energy Quarterly report on Monday — show Australia’s combined coal export earnings are tipped to rise to about $110bn in 2021–22.
Coal joins iron ore as only the second Australian commodity to break the $100bn export mark.
Mr Joyce said increasing coal exports would make Australia wealthier and stronger.
“Coal is one of our biggest export earners and a significant economic driver, helping pay for services such as our defence force, the NDIS, and hospitals and schools,” the Deputy Prime Minister said.
“If we don’t put coal on boats, Australians must choose which services and opportunities they don’t want because without that income, our nation will become weaker and poorer.”
Capricornia MP Michelle Landry said the resources industry contributed about $1.1bn in wages paid to 7335 full-time workers in her electorate in the 2019-20 financial year, while about $2.7bn was also spent on goods and services locally, benefiting about 1306 Central Queensland businesses.
She said she hoped the Olive Downs mine would further drive the success of Queensland’s resources industry.
Resources Minister Scott Stewart said the project would bring significant economic benefits to all of Queensland.
“The Olive Downs mine is estimated to be worth $10.1 billion to the gross state product and will be an absolute jobs jackpot,” he said.
“At its peak, this mine will produce 15 million tonnes per annum of steelmaking metallurgical coal.
“This will be transported by rail to the Dalrymple Bay Coal Terminal, for export to key international markets such as Japan, India and South Korea.”
Mr Tudor said Olive Downs was the first mine to be approved under the State Government’s ‘Strong and Sustainable Communities Act’.
He said as well as committing to partnering with businesses and suppliers within the region, Olive Downs would be a world-leading mine for its environmental credentials.
Mr Tudor said the mine would set a new standard in conserving and protecting the environment.
He said the Stage 1 and 2 native flora and fauna conservation areas would be about 87 times the size of Brisbane CBD and established in perpetuity.
Mr Tudor said Pembroke would progressively rehabilitate disturbed areas from the start of production and conduct rigorous, ongoing environmental monitoring to ensure land and waterways were protected.
It comes in the wake of the Queensland Environment Department raising concerns behind the scenes about the project’s impact on surrounding waterways and fears of large mine “voids”.
The department flagged concerns with the then Co-ordinator-General during the environmental approval process in 2018 and 2019 about the serious risks of leaving large mine pits — also known as “voids” — on the Isaac River flood plain after the mine shuts down.
Mr Tudor said the company had signed an Indigenous Land Use Agreement with the Barada Barna people.
“The ILUA we have signed will deliver a benefits package for the entire life of the mine, including jobs, skills and training opportunities, annual contributions and a strong cultural heritage management plan,” he said.
Isaac Regional Council Deputy Mayor Kelly Vea Vea said Olive Downs gave her region “hope for our future”.
She said working through new legislation for new projects was not easy for the company or the “passionate bunch” at the council.
“We are passionate because the impacts of what happens here at Olive Downs mine will be felt far beyond the boundaries of this lease and far beyond our time,” she said.
The Olive Downs Project received its Environmental Authority and Mining Lease from the Queensland Government and its Environmental Protection and Biodiversity Conservation approval from the Federal Government.
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