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Pembroke Resources names recipient of EPC contract for its Olive Downs metallurgical coal project

Published by , Assistant Editor
World Coal,

Pembroke Resources (Pembroke) has awarded the CIMIC Group companies Sedgman and CPB Contractors, the engineering procurement and construction contract (EPC contract) for the design, procurement, construction and commissioning of the coal handling and preparation plant (CHPP) for the Olive Downs metallurgical coal project, near Moranbah (Queensland).

In total, the contract will involve up to AUS$184 million of capital expenditure over the construction period, estimated to conclude in early 2020. The design and early procurement work for the CHPP will commence immediately. Mineral processing company Sedgman and construction company CPB Contractors will work together with Pembroke Olive Downs to deliver a CHPP that will have sufficient capacity to process the first phase of annual production of up to 6 million tof ROM coal from the Olive Downs metallurgical coal project.

Pembroke Chairman and CEO Barry Tudor said: “The awarding of the contract is a key milestone in the development of the Olive Downs metallurgical coal project. The contract demonstrates Pembroke’s commitment to develop the project. Fully developed, the Olive Downs metallurgical coal project will be among the largest metallurgical coal mines in the world, producing up to 15 million tpy of metallurgical coal for almost 80 years."

“We are pleased to partner with Sedgman and CPB Contractors on an integrated solution to deliver one of the largest and most exciting new developments to occur in the Bowen Basin.”

Pembroke, an Australian specialist metallurgical coal company, owns 100% of the asset and its experienced management team and shareholders are committed to bringing the company’s flagship Olive Downs metallurgical coal through to production. The significant progress since its acquisition, and especially in the time since its co-ordinated project status was announced, attest to the company’s intentions to deliver the completed project in a challenging timeframe. The project also includes centralised coal handling and processing facilities, infrastructure links for rail, water and power, and site access. In addition to mining, the overall project will create opportunities across a range of support and ancillary operations and businesses.

The Olive Downs metallurgical coal project will create over 500 jobs during the construction phase and when fully operational approximately 1000 jobs will be required across the project's almost 80 year mine life, ramping up from the commencement planned in 2020. With JORC Resources totalling 813 million t including 514 million t of Reserves, the Olive Downs metallurgical coal project will primarily target export markets, including servicing the demand of Asia’s steel industries. Fully developed, the project will be one of the largest metallurgical mines in the world, producing up to 15 million tpy of metallurgical coal for almost 80 years.

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