Pembroke Resources is planning to build a coal mine at Olive Downs in Queensland’s Bowen Basin, after purchasing some of its projects from the bankrupt Peabody Energy.
Pembroke, which bought a number of Olive Downs projects in May last year, plans to invest $1 billion in the mine, which could provide work for around 1000 people, according to The Australian.
The company is run by Barry Tudor, former managing director of Gloucester Coal, who has begun the mining approvals process.
Tudor said they are planning to increase production to 14 million tonnes a year, and as a result, capital costs will be approximately $1 billion.
Construction is expected to begin in 2019, with the mine also needing a processing plant and rail infrastructure to transport coal for export to Mackay.
“We know it’s a world-class asset and we are advancing it as quickly as we can,” Tudor said.
He added that the mine would also have low operating costs.
Pembroke’s executives had been scoping out coking coal projects from 2014, receiving up to $US200m in financial support from Denham Capital, a US based private equity company.
Denham is understood to be providing additional funding for the mine development, although more will be needed.
Pembroke is also planning to acquire Peabody’s smaller, yet more advanced, Olive Downs North project, if it is agreed by Peabody’s partners.