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Australia's Pembroke wins government approval for USD 700 million coking coal mine

Coal News - Published on Thu, 16 May 2019

Image Source: Student Energy
Reuters reported that privately held Pembroke Resources won approval from Australia's Queensland state to develop a USD 700 million coking coal mine, as it pushes to tap strong demand for the steelmaking ingredient in Asia. Chief Executive Mr Barry Tudor told Reuters that construction is due to start next year, with the company looking to begin negotiating contracts soon for supplies of coal from the mine. Mr Tudor said that "In developing the mine, our preferred course is to obtain some project finance. And as a component we anticipate we will need to put in place some offtake agreements. We haven't entered into any offtake or supply agreements yet. We got an approval today, so we can advance those discussions in a more tangible way now."

Pembroke has been talking to potential customers in Japan, South Korea and India, and is also open to selling a stake in the mine that will eventually produce 15 million tonnes of nigh-quality coking coal a year out of the state's developed Bowen Basin.

Mr Tudor said Pembroke had seen a lot of "inbound interest" in the project and that he saw advantages in selling a stake. He said that "There's sales and marketing, you need to brand your product and there's potential offtake. Absolutely the door is open."

Source :

Posted By : Rabi Wangkhem on Thu, 16 May 2019
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