Olive Downs coking coal mine near Moranbah approved for $175m NAIF loan

A major coal mine set to create hundreds of critical jobs in Queensland’s mining heartland has had its bid for a government-funded loan approved.

A MAJOR coal mine set to create hundreds of critical jobs in Queensland’s mining heartland has had its bid for a government-funded loan approved.

Soon-to-be relegated Northern Australia and Resources Minister Keith Pitt has announced the Olive Downs mine had been approved for a Northern Australia Infrastructure Facility loan worth $175m.

The mine, southwest of Moranbah in Central Queensland, will be the state’s third largest mine, producing up to 15 million tonnes of metallurgical coal a year and employing 1500 people.

The loan, to be repaid over 10 years, will be used to build rail and transmission lines, water pipelines, access roads and a coal handling preparation plant.

The loan is nearly 20 per cent of the project’s $900m total price tag.

The final approval for Pembroke Resource’s Olive Downs mine was announced by Premier Annastacia Palaszczuk during last year’s state election campaign despite the project facing a legal challenge.

Northern Australia, Resources and Water Minister Keith Pitt.

Mr Pitt said the NAIF loan would be “an important contribution to the project” which is expected to return “more than $10bn to the Australian economy” over the mine’s lifetime which is 75 years. “(The) project will create jobs and opportunities for Central Queensland and the nearby town of Moranbah, and will generate royalties and export income for Queensland and Australia for many years to come.”

Up to 700 jobs are expected to be created during construction. Pembroke Resources chief executive Barry Tudor said the mine had been designed to “meet and exceed” the most stringent environmental obligations.

“Olive Downs will truly be a 21st Century mine built to 21st Century standards which is designed to meet and exceed the most stringent environmental obligations whilst creating local jobs,” he said. “As a new mine, without legacy issues, Pembroke’s Olive Downs Mine can be the vanguard for others in the industry.”

This is likely the last NAIF-related announcement Mr Pitt will make as Northern Australia Minister, after the Nationals MP was shuffled out of the portfolio following the resurrection of Barnaby Joyce.

In May Mr Pitt was criticised for knocking back a NAIF funding bid for a $370 million green energy hub slated to create 250 jobs in regional Queensland. He exercised his rarely used veto powers, saying he was “unconvinced” it would lower energy prices.