Thiess wins long-term mining contract for Olive Downs 

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Pembroke Resources has awarded Thiess an 8-year mining contract for the Olive Downs Coking Coal Project located in the Bowen Basin in Queensland.

Under the terms of the agreement, Thiess will be in charge of full-service mining operations, mine planning, overburden removal, drill and blast, load and haul, water management and rehabilitation of final landforms.

The Olive Downs Coking Coal Project is a Coordinated Project under the Queensland State Development Act.

According to Pembroke’s estimates of coking coal price and production rates, during its up to 80 years mine life, the project has the potential to generate as much as A$6 billion of royalties for the Queensland Government.

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“We are pleased to be working in partnership with Pembroke, tailoring our mine development capability, technology focus and ESG credentials to optimize the outcomes for the production of steelmaking coal from Olive Downs,” said Thiess Executive Chairman and CEO Michael Wright in an ASX announcement.

“Pembroke and Thiess share a view of Olive Downs being a world class mine that sets global benchmarks in sustainable mining, using technology to drive exceptional outcomes.”

The company expects to see revenues of around $1.5 billion over the course of the first five years.

Operations are expected to start during the first half of 2023, subject to finalization of contracts.

“We have a long history operating in the Bowen Basin, applying our technical knowledge and operational experience to minimize environmental impacts and maximize benefits for our client and the community,” added Thiess Executive General Manager Australia Shaun Newberry.

“We look forward to working with Pembroke and surrounding communities to achieve long-term social, environmental and economic outcomes.”

Image credit: https://www.pembrokeresources.com.au/olive-downs/