Pembroke secures $877m to expand Olive Downs

Pembroke Resources has successfully raised $US550 million ($877 million) to support the expansion of the Olive Downs Complex in the Bowen Basin of Queensland.

The funds were secured through senior secured bonds in the Nordic Corporate Bond Market, with settlement expected in March 2025. The settlement of the five-year bond was issued at 11.5 per cent, attracting strong global investor interest.

The net proceeds will primarily be used to refinance existing debt facilities and support the next stage of expanding the Olive Downs Complex.

Pembroke chair, chief executive officer and founder Barry Tudor said the raised funds is another significant milestone in the Pembroke journey and thanked all existing and new investors and Pembroke’s advisors for their continued support.

“The bond received strong support from investors globally, demonstrating the confidence of the market in Pembroke and in the Olive Downs Complex,” Tudor said.

“The new funding will allow us to continue to capitalise on the enormous growth potential of Olive Downs, unlocked by expanding operations in stage two from the existing six million tonnes per annum level to at least 12 million tonne per annum.”

Olive Downs is Australia’s newest steelmaking coal complex and since its opening in April 2024, has shipped over 2.8 million tonnes of high-quality steelmaking coal to key export markets.

The operation has already created 600 new jobs in its first stage, with up to 1000 jobs anticipated as part of the second-stage expansion.

Over its lifetime, the mine is expected to generate more than $10 billion in royalties for the Queensland Government, supporting essential services and infrastructure across the state.

Pembroke received the go-ahead back in May, 2020, the Australian Department of Agriculture, Water and the Environment provided Pembroke a clear pathway to progress the project’s mining leases.

The Olive Downs Complex includes an open-cut metallurgical coal mine, a coal handling and preparation plant, an 18km rail spur and on-site rail loop, a raw water pipeline connecting to the Eungella network, private access roads, electricity transmission line and wastewater and sewage treatment plants.