Pembroke Resource’s Olive Downs is Australia’s newest steelmaking coal complex and officially opened in April 2024. It has already shipped more than 2.8 million tonnes of steelmaking coal to key export markets and the next phase of the project, the Olive Downs Expansion, is set to increase production capacity and create further employment opportunities.
Pembroke Olive Downs Pty Ltd has raised USD550 million in senior secured bonds on the Nordic Corporate Bond Market. Settlement of the five-year bond issued at 11.5% is expected in March 2025.
The net proceeds will largely refinance existing debt facilities and support the next stage of the Olive Downs Expansion, which will increase operations from 6 million tonnes per annum to at least 12 million tonnes per annum.
“The Bond received strong support from investors globally, demonstrating the confidence of the market in Pembroke and in the Olive Downs Complex,” said Chairman, CEO and Pembroke Founder Barry Tudor.
“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 6 million tonnes per annum level to at least 12 million tonne per annum.”
The first stage of the project has generated 600 jobs, with up to 1,000 anticipated in the second stage expansion, while more than 1,000 jobs were created during construction. The mine is expected to generate over $10 billion in royalties for the Queensland Government over its life, funding essential services and infrastructure across the state.
Even before reaching full production, Pembroke Resources has maintained a strong commitment to the Isaac Region. The company continues to invest in the local economy through employment, procurement and community initiatives that deliver tangible benefits.
As part of its commitment to environmental management, Pembroke has invested $10 million in its ICON conservation program, which supports biodiversity and environmental sustainability in the region.
Additional community investments include the Community Partnership Fund, a $1 million, five-year commitment that provided $216,000 in 2024 to 21 local organisations.
This support has benefited over 2,000 students, delivered 180,000 litres of water to Valkyrie School, and assisted local events.
The company also runs the Mini Miners Program, offering hands-on experiences for students, and has established a three-year, $60,000 partnership with ELAM in Moranbah to support youth engagement activities, including a school holiday program.
Further community contributions include the Moranbah State School all-abilities Pembroke Playground and a partnership with local radio station 4RFM via the Isaac Champions Program.
Pembroke is also taking steps to support housing availability in Moranbah. The company is in the process of submitting Development Approvals to Isaac Regional Council for redeveloping several properties from single dwelling to multi-dwelling housing, an initiative aimed at providing improved living arrangements for local residents and workers.
Despite increasing royalty costs and regulatory pressures, Pembroke continues to prioritise investment in the region while maintaining steady state operations and its commitments. The Olive Downs Expansion represents a major phase in the project’s development, set to increase production capacity and create further employment opportunities.
CEO Barry Tudor will provide an update on the Olive Downs Complex at the Bowen Basin Mining Club Luncheon in late March. His address is expected to offer detailed insights into operational progress, financial strategy and the integration of community initiatives, giving stakeholders a clearer view of the project’s future trajectory.
