The Olive Downs steelmaking coal complex in Queensland is in for a major expansion thanks to fund raising efforts from owner, Pembroke.
Pembroke successfully raised $US550 million ($877 million) for a second-stage expansion project via senior secured bonds in the Nordic Corporate Bond Market.
Settlement of the five-year bond transaction issued at 11.5 per cent is expected to occur in March 2025.
Pembroke founder, chair and chief executive officer Barry Tudor said the bond attracted significant interest from credit investors globally, demonstrating the confidence of the market in Pembroke and in the Olive Downs complex.
“The new funding will allow us to continue to capitalise on the enormous growth potential of Olive Downs, unlocked by expanding operations in Stage 2 from the existing six million tonnes per annum level to at least 12 million tonnes per annum,” Tudor said.
Since its official opening in April 2024, Olive Downs has shipped more than 2.8 million tonnes of high-quality steelmaking coal to Australia’s key export markets.
Already, some 600 new jobs have been created in its first stage of operation, with up to 1000 jobs anticipated in the second stage expansion.
The Bowen Basin mine is expected to generate more than $10 billion in royalties for the Queensland Government over its life – helping to fund essential services and infrastructure across all of Queensland.
The raise is the second Pembroke has successfully held for Olive Downs, having courted $500 million in 2021 to begin the project.
The Bowen Basin is purported to supply half of the world’s steelmaking coal, marking the investment as a signifier of the world’s faith in the region as a continuing area of global significance.
