Coal news and updates

The Australian government approved a A$175 million ($131.25 million) loan to support development work on the first stage of the privately-owned Olive Downs metallurgical coal project in Queensland, the minister for resources said on Thursday.

 

The financial support lent by the Northern Australia Infrastructure Facility (NAIF) comes as banks and financial institutions are facing increased pressure to stop supporting coal and other fossil fuel projects.

 

Australia, the world's biggest coal exporter, is yet to commit to a pathway to net-zero emissions by 2050. Support for coal was a key factor behind the ruling Liberal-National coalition's 2019 election victory.

 

The A$900 million Olive Downs project will create up to 700 jobs during the construction phase and more than 500 new jobs when fully operational, Keith Pitt, the minister for resources, water and Northern Australia said.

 

The project is being developed by Pembroke Resources, which is backed by private-equity resources firm Denham Capital, in the Bowen Basin of Queensland. Metallurgical coal is used in steelmaking.

 

Olive Downs is expected to produce 15 million tonnes per year of saleable coal with a mine life of 79 years.

 

"The NAIF investment will be an important contribution to a project, which is expected to return more than $10 billion to the Australian economy over the mine's lifetime, and provide jobs for people in Moranbah, Dysart, and Mackay," Pitt said in a statement.

 

Pembroke Resources said on its website that it plans to supply metallurgical coal from the project to Japan, South Korea, China, and India.

 

 

Source : https://www.nasdaq.com/articles