Coal hard truth
Olive Downs delivers big
Nestled about 40km southeast of Moranbah, Queensland in the Bowen Basin, the Olive?Downs Complex stands as Pembroke Resources’ ambitious ode to modern mining.
The Olive Downs Complex, a $1b open-cut metallurgical coal project, is more than just another mine. It’s a purpose-built, high-performance operation delivering premium-grade coal to international markets and long-term value to local communities.
Operations began in April 2024, and Olive Downs has shipped more than 2.8mt of high-quality coal and PCI products to buyers in Japan, South Korea and India. With JORC reserves of 514mt and a projected mine life of up to 80 years, the site is primed to become one of the state’s most significant coal assets, both economically and strategically.
At the helm is Pembroke Resources founder and chief executive Barry Tudor, whose vision for Olive Downs has been clear from the start: build a world-class mine from the ground up, powered by smart infrastructure, strong partnerships and a commitment to long-term sustainability.
Now, with Stage 2 expansion underway and a recent $842m (US$550m) capital raise locked in, that vision is scaling fast.
Looking back
Since the opening of operations at Olive Downs in April 2024, Mr Tudor reflects on a year marked by key milestones, including major infrastructure, autonomous machinery, and winning a prestigious award.
“Milestones include the completion and integration of the brand-new infrastructure, the first Australian site to use both autonomous CAT 794 haulage and autonomous drilling, and first coal processed into high quality hard coking coal through our state-of-the-art two stage processing plant,” he said.
Further to these milestones, Olive Downs has also rapidly ramped up from initial commissioning to steady state production, achieved consistent hard coking coal specifications, received high demand for the product across all major world markets, shipped product internationally, and more than 4mt produced, shipped and sold.
Olive Downs also won the Queensland Mining Environmental Award for its world first 4 phase clearing protocol.
“While achieving these milestones, we also implemented a new approach to mining with a fully integrated complex (campus) incorporating conservation areas, solar, pastoral, and a koala and greater glider research and conservation clinic,” Mr Tudor said.
From the ground up
Built from the ground up with a focus on world-class infrastructure, Olive Downs was designed to deliver efficiency, reliability and scale from day one.
From the construction of an 18km rail spur and dedicated on-site rail loop to the delivery of a state-of-the-art coal handling and preparation plant, every element of the site was purpose-built to support streamlined operations and high-volume export. Mr Tudor walks through some of the major construction achievements and the significance of Olive Downs assets.
“The strategic infrastructure investment exceeded $500m,” he said.
“Of note was the approach to construction. To achieve the very ambitious timeline, critical time path construction components were prioritised and committed early.
“For example, given the critical need for water during the construction phase, the 24km water pipeline was constructed prior to project financing, so that when construction commenced this would not cause a delay.
“Similarly, long lead items for the coal handling and processing plant were identified and ordered well before construction commenced. Many construction components were built in parallel with dozens of individual contractors on site on any given day during the 18-month construction period.
“As the only new large scale greenfield development in Australia in the last decade, Pembroke had a unique opportunity to implement a modern mine, incorporating the latest approaches, technology and ESG.”
Capital raise & impressive technology
The recent $842m (US$550m) Nordic Bond was a very significant milestone, providing a huge vote of confidence in the Pembroke and the Olive Downs Complex even during its initial ramp up phase and demonstrating the market’s belief in the strong fundamentals of the project and management’s unique ability to implement a major greenfield project during a time of significant uncertainty.
Mr Tudor says it was an endorsement of Pembroke’s ability to deliver a project of the scale of Olive Downs more or less on time and on budget, in difficult economic times.
“In a tangible way, it provides the funds for Pembroke to implement its expansion plans, delivering the next phase of production up to 15mtpa of high-quality hard coking coal,” he said.
“With regards to technology, it’s one of the cornerstones of a 21st century modern mine. As a large-scale greenfield operation, we had a unique opportunity to implement the latest technology across the site, the most notable being the CAT Minestar fully autonomous haulage system, using CAT 794 and CAT 793 trucks.
“We also have autonomous drilling on site.
“The Olive Downs Complex is the first mine in the country to operate a full fleet of fully autonomous CAT 794 haul trucks, and the first to integrate both autonomous haulage and drilling systems on the same site.
“When fully implemented, autonomy drives productive outcomes, better sustainability and better safety across the site; it also allows for a new breed of professionals to be introduced to mining through the latest technological advances.
“An illustration of the cutting-edge autonomy at Olive Downs was the recent visit to site by NASA, who are studying the adaptation of our technology for lunar resource utilisation.”
Partnerships & collaborations
Pembroke has collaborated with a number of partners and contractors on Olive Downs, and Mr Tudor reiterates an African proverb that sums up the company’s approach to partners when building the site — “If you want to go fast, go alone. If you want to go far, go together.”
“Collaboration is at the heart of the Olive Downs Complex’s achievements,” Mr Tudor said.
“Again, as a major greenfield steelmaking coal project, we understood that we had only one opportunity to build something properly in a high inflation, ever changing world. Central to our strategy to execute this plan were our partnerships.
“From inception we have partnered with several innovative Queensland-based companies, whose unique expertise and commitment to partnership have been instrumental in our progress to developing the modern face of mining.
“From large construction contractors the likes of Goldings, Yurika and Aurizon to smaller Bowen-based contractors such as Spencer Mining, whose small, passionate team has provided flexible and high-quality solutions, each group has played a vital partnership role.
“Pentacon, a privately owned civil construction company has been a trusted partner from the early stages of Olive Downs. Based between Brisbane and Mackay, their team of engineering and construction professionals designed and built essential infrastructure, including mine access roads, culverts for heavy vehicle crossings, dam, and tailings cells. Pentacon’s consistent delivery within scope and budget has solidified their role as a cornerstone of our success.
“There couldn’t be a more critical partner than Sedgman, our construction partner in building the coal handling and preparation plant and the current operator of that same plant.
“These partnerships exemplify how both large and small, regional and local businesses can drive large-scale projects, fostering growth and excellence across the Queensland mining industry.”
Reshaping regional workforce
With more than 600 jobs already created and hundreds more in the pipeline, the Olive Downs Complex is transforming the regional workforce in Moranbah and beyond.
Mr Tudor says its commitment to a regional focus ensures local workers have genuine choice in employment, fostering economic stability and opportunity.
“More than 35% of our workforce permanently reside from the Isaac or the neighbouring Mackay, Central Highlands, and Whitsunday local government regions,” he said.
“This approach not only strengthens the local economy but also builds a workforce that is deeply connected to the region’s needs and aspirations. Through training programs and partnerships with local institutions, we are equipping workers with the skills needed to thrive in a modern mining environment, creating a legacy of opportunity for future generations.
“The Australian mining industry stands at a crossroads, with an opportunity to lead through environmental stewardship, transparency, and social responsibility.
“At Pembroke Resources, we are committed to positioning the Olive Downs Complex as a model of sustainable mining, balancing economic growth with the needs of our communities and the environment.
“By fostering strong partnerships, investing in local talent, and embracing ethical practices, we are not only meeting the demands of today but also paving the way for a sustainable future in the Bowen Basin.
“Together, we can ensure that Australian mining remains a global leader in innovation and responsibility.
80-year mine life
A mine life of up to 80 years is rare, but Pembroke has a long-term vision for Olive Downs built on sustainable expanded production. It has done this by building for the future, implanting a staged expansion (with existing environmental approvals already in place), high quality product, and tier one customers while setting new world class standards for sustainable mining.
“Establishing a greenfield coal mine in today’s regulatory and social environment presented significant hurdles,” Mr Tudor said.
“Nonetheless, we viewed this landscape as an opportunity to introduce a distinctly modern approach, one that aligns with contemporary expectations around environmental stewardship, emissions reduction, social responsibility, and governance.
“Rather than aiming to simply comply with regulatory requirements, we set out to exceed them. From the earliest stages of planning, the company committed to creating a project that would set new benchmarks for the industry.
“The project reflects a strategic integration of sustainability and innovation, brought together through a long-term, systems-based view of mining. The Olive Downs Complex was designed not as a standalone operation but as a comprehensive, interconnected development that embodies best practice in both operational performance and environmental responsibility.
“A core feature of this approach was the early acquisition of more than 40,000ha of agricultural land within and around the development area. While not essential for mine operations, this land provided the basis for responsible land use planning, biodiversity protection, and future community interface.
“The move reflects Pembroke’s philosophy that long-term value and licence to operate are built through stewardship, not just compliance.
“By applying a campus-style design philosophy, Olive Downs reimagined traditional mine construction. We integrate infrastructure, environmental buffers, and operational precincts into a unified model that supports not only production efficiency but also social and environmental outcomes.
“The result is a development that demonstrates how a modern coal project can be executed in a way that aligns with evolving expectations setting a precedent for responsible resource development in the 21st century.”
The site is a world first integrated campus that will encompasses a diverse range of components, including:
- More than 20,000ha of land allocated as conservation zones, ensuring long-term protection of native wildlife and critical habitats.
- A dedicated wildlife care facility, established to support koalas and greater gliders, staffed by experienced veterinarians and ecologists focused on research, rehabilitation, and species preservation.
- Cutting-edge fauna monitoring initiatives, supported by veterinary programs and educational outreach designed to engage and inform the local community.
- A 10ha solar installation to be developed to contribute renewable energy to the site, helping reduce reliance on conventional power sources and supporting cleaner operations.
- An additional 20,000ha are maintained for pastoral use, supporting ongoing agricultural productivity and enhancing responsible land stewardship.
- A purpose-built Indigenous Cultural Centre is being created to honour and share the deep cultural heritage of the region’s First Nations peoples.
- A sustainability-focused eco-village is under development, designed to global environmental standards with an emphasis on low-impact living and integrated community planning including incubators for real world research and development.
- The open-cut mine at Olive Downs is equipped with advanced autonomous mining systems, combining innovation with enhanced safety and operational efficiency.
Positive impact
Mr Tudor says there are many aspects that are immensely rewarding in taking a company from zero to a multi-billion enterprise in what will be one of the world’s largest steelmaking coal mines, with more than 500,000t of open cut reserves, an impressive mine life of 79 years and the capacity to produce up to 20mt (ROM).
“Seeing a newly created, modern mine, with hundreds of highly motivated employees, setting new standards, while also generating a critical resource that is essential for developing economies worldwide is extremely rewarding,” he said.
“I enjoy getting deep into the site, meeting the reams, sitting on the trucks and diggers and understanding their motivations, what they like and what they would like to see differently.
“It is so satisfying to hear so many express their pleasure for working at such a new and progressive operation.
“The positive impact on the community, employment and general prosperity is wonderful. The creation of Olive Downs, and all it stands for in a new, higher standard of sustainable mining is a legacy I am immensely proud of.”
