Pembroke Resources expects to start production at its Olive Downs metallurgical coal project next year, according to company CEO Barry Tudor, with an additional two mines starting up before 2019.
“We’d like to get it into production as soon as possible,” Tudor told Reuters in an interview. “But we’re not trying to pick peaks in the market.”
Pembroke acquired the Olive Downs assets in Queensland’s Bowen Basin from the Australian arm of US coal company, Peabody Energy, and Hong-Kong-based CITIC Resources in May for AUS$120 million plus an additional royalty.
The assets include Olive Downs South, Willunga and Olive Downs North with rights to four exploration permits for coal and two mine leases – both for Olive Downs North.
Pembroke, which is backed by US private equity company Denham Capital, acquired a 100% interest in Olive Downs South and Willunga and an 87.3% interest in Olive Downs North.
The initial mine will target a 1 million tpy production rate but at full ramp up, the complex could produce as must as 14 million tpy, making Olive Downs among the largest metallurgical coal mines in Australia.
Edited by Jonathan Rowland.