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The head of Pembroke Resources said the company’s proposed Bowen Basin mine is part of the climate change solution and would help Australia meet its emissions targets.

The company has received a $175 Northern Australia Infrastructure Facility loan to help develop the Olive Downs Mine about 40 kilometres southeast of Moranbah.

High quality coal substitutes a climate solution Olive Downs Landscape

The project was timely in terms of high demand and the lack of quality substitutes said Mr Tudor in a lengthy post on Linkedin. 

“The common argument against new steelmaking coal mines is that any new project will only exacerbate the existing emissions from steel production,” Mr Tudor said. “This is an overly simplistic supposition, and the reality is vastly different. 

“While we expect an eventual move to new, more efficient/low emission steel making technologies, the reality is these are several decades away. A reduction of emissions from steel production can be achieved now.  

“The worst 3 percent of global steelmaking coal producers emit more Scope 1 and 2 CO2e than the lowest 35 percent. Introducing low-cost, low-emitting steelmaking coals to the global market will displace the worst of these high-emitting producers. 

“Olive Downs Coking Coal will be produced at the lowest quartile of Scope 1 and 2 carbon emissions and therefore can displace much higher emitting coals.”

In its first stage, Olive Downs could displace 4.5Mtpa of coal from high emitting mines and help reduce the global annual Carbon Dioxide emissions by up to 5 Mtpa,” said Mr Tudor

“This would contribute 5 percent of Australia’s 2030 target of 80-92 Mt CO2e3 annual emissions reduction by displacing global production of higher emitting coals,” he said. 
 
“Olive Downs holds the rare position of being a new mine, developed to the stringent standards required of a 21st century mine.  

“As a greenfield project, ESG considerations were embedded at the outset of planning. This has the potential to generate a far more effective outcome than seeking to implement these retrospectively.”

The production of high quality, low emission coal for steelmaking paved the way for new technologies said Mr Tudor.

“The world is demanding high quality steel more than ever in a post COVID, fiscal stimulus environment,” he said.

“In addition to providing hundreds of new jobs in regional Queensland, actively supporting and growing local communities, contributing billions of dollars in royalties and generating world class environmental outcomes, the Olive Downs Steelmaking complex is actually a practical, demonstrable solution to reducing emissions.

“Pembroke is immensely proud to be developing this project and is the kind of project that Australia needs to be developing.”