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Thiess locks in $1.5bn at Olive Downs

Thiess has waived all remaining conditions in its takeover offer for MACA, providing its shareholders with cash consideration certainty.

Pembroke Resources has awarded Thiess a contract for the provision of mining services at its Olive Downs coking coal complex in Queensland’s Bowen Basin.

The eight-year contract is expected to produce $1.5 billion in revenue for Thiess over the first five years, with revenue beyond this term to be finalised.

“We’re pleased to be working in partnership with Pembroke, tailoring our mine development capability, technology focus and ESG (environmental, social and governance) credentials to optimise the outcomes for the production of steelmaking coal from Olive Downs,” said Thiess executive chairman and chief executive officer Michael Wright.

“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.”

Thiess will deliver full-service mining operations, including mine planning, overburden removal, drill and blast, load and haul, water management and rehabilitation of final landforms at Olive Downs.

This includes the construction of mine infrastructure, providing all mobile plant and equipment, as well as the statutory operator for the project.

Thiess executive general manager Australia Shaun Newberry said his company was well placed to best serve Pembroke using its intimate knowledge of the region.

“We have a long history operating in the Bowen Basin, applying our technical knowledge and operational experience to minimise environmental impacts and maximise benefits for our client and the community,” Newberry said.

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

This announcement follows two mining services worth $200 million that were awarded to Thiess in December 2021 from BHP Mitsubishi Alliance and Austral Resources.

Thiess will commence operations at Olive Downs in the first half of 2023 subject to the finalisation of contracts.

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