Pembroke Resources - Mining Outlook - issue 4

AUSTRALIA’S MODERN MINING PROJECT

PEMBROKE RESOURCES ASIA PACIFIC

OPPORTUNITIES A N D S U S TA I N A B I L I T We explore a rare world-class mining project, which is setting the global standard in conservation and innovation, with Barry Tudor, Chairman and CEO of Pembroke Resources Writer: Rachel Carr | Project Manager: Eddie Clinton

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stablished in 2014, Pembroke Resources emerged from an unusual beginning.

After assembling a group of mining executives with significant experience in the coal mining industry, the organisation received financial backing and commitment from the global private equity business, Denham Capital, before acquiring any assets.

Mining Outlook Issue 4 | 3

“Denham Capital effectively backed me and the team to execute a strategy we had formulated and agreed upon.

This approach has proven to be a key success factor in the implementation and development of the Olive Downs Complex,” opens Barry Tudor, Chairman and CEO of Pembroke Resources.

The Olive Downs Complex, a large-scale, world-class steelmaking coal mine in the Bowen Basin of Queensland, contains some of Australia’s largest coking coal reserves.

“I established Pembroke Resources as a metallurgical coal pure play company, and I remain convinced that steelmaking coal is an excellent commodity to invest in because there are limited reserves of high-quality coking coal available, there is no practical substitute for this type of 6 | Mining Outlook Issue 4

coal in the steelmaking process, and there won’t be for many decades.

“It’s also important to have a key understanding of the value of your product in use, and subsequently branding this product in direct interaction with end users is a key component of Pembroke Resources’ strategy,” Tudor enlightens us.

Driven by a clear vision, Pembroke Resources has evolved into a sustainable and reliable source of coking coal for the steel industry while adhering to strict environmental, social, and governance (ESG) principles.

Indeed, operating in a manner that complies with and surpasses rigorous ecological regulations and expectations is at the core of the company’s philosophy. Moreover, it has earned and maintained the

social licence needed for responsible resource development.

SUSTAINABILITY STRATEGY For Pembroke Resources, sustainability is a fundamental guiding principle that permeates all aspects of its operations. Tudor recognised the challenges associated with developing a new coal mine and saw the opportunity to showcase a fresh approach to mining that aligned with contemporary values and addressed concerns regarding the environment, carbon emissions, and social impacts.

“The importance of sustainability to Pembroke Resources lies in its vision to go beyond the minimum requirements and set new industry standards. The company’s objective is not only to achieve successful mining operations, but to do so in a manner

PEMBROKE RESOURCES ASIA PACIFIC

that contributes positively to the environment, society, and the local community,” outlines Tudor.

This commitment to sustainability

is a core part of Pembroke Resources’ ethos. It shapes its decision-making process throughout the life cycle of the Olive Downs Complex, which has

BENEFITS OF THE OLIVE DOWNS COMPLEX PROJECT • REVENUE – The project has the potential to generate as much as AUD$10.2 billion in royalties for the Queensland government.

• ADVANTAGES FOR LOCAL AND REGIONAL BUSINESSES – Pembroke Resources has consciously decided to prioritise local and regional suppliers.

A promotion network has been utilised for business opportunities, including establishing the Industry Capability Network (ICN) Olive Downs Complex page.

More than 30 local businesses have engaged with the page to date.

• ADDITIONAL JOB OPPORTUNITIES – It is estimated that between 500 and 700 employment opportunities will be created during the construction of the site, with a further 300 to 500 construction jobs by 2027. Once operational, the total number of jobs at the mine will increase to 1,300 by 2033.

• INDIGENOUS EMPLOYMENT AND TRAINING OPPORTUNITIES – Pembroke Resources has signed an Indigenous Land Use Agreement (ILUA) with the Barada Barna Aboriginal Corporation – the traditional owners of the land on which the Olive Downs Complex project will be developed. The company also has a cultural management plan to control the impacts on Aboriginal cultural heritage and to meet its duty of care obligations at the project site.

• LOCALLY-BASED EMPLOYMENT, INCLUDING A FOCUS ON GENDER EQUALITY – Pembroke Resources will develop recruitment policies and

ESG credentials ingrained in its very design and development.

The allocation of over 20,000 hectares (ha) of designated conservation areas within the Olive Downs Complex demonstrates Pembroke Resources’ dedication to preserving native fauna and ecological habitats.

“The specialised clinic for koalas and greater gliders, staffed by specialist ecologists and veterinarians, signifies the mine’s commitment to wildlife protection and conservation efforts. The innovative fauna tracking programmes, supported by wildlife experts and generating important academic research, further showcase the mine’s dedication to the preservation and study of native wildlife,” he details.

Furthermore, the 10ha solar farm and green energy project highlights the commitment of the Olive Downs Complex to sustainable energy practices, reducing its carbon footprint and promoting environmental stewardship.

processes to attract local employees and encourage female and Indigenous

INDUSTRY INVESTMENTS

participation. Pembroke Resources has engaged with Thiess to provide full mine

In 2016, Pembroke Resources acquired the Olive Downs Complex from Peabody Energy. It perfectly

services for the project over the next five years. As such, Theiss advertises roles on public domains, focusing on local and regional areas.

Mining Outlook Issue 4 | 7

In the Business of Supplying the Right Engineering Solutions Firstly, please introduce us to the history of Fraser-Lever and your experience in delivering projects in Australia and overseas.

Fraser-Lever is the result of the merger of Fraser-Osborn (1985) and Lever Australia (2011) three years ago. The entity has nearly 40 years of experience delivering projects in Australia and Papua New Guinea, primarily in the resources and infrastructure sectors. Located across our Brisbane and Townsville offices, our core team of multi-disciplinary principal engineers, charted engineers and management team are dedicated to ensuring all projects are delivered to client satisfaction and best practices for quality, safety, and the environment. Supporting our principals is an experienced multi-discipline team of professionals.

How has the Olive Downs Complex showcased FraserLever’s capabilities?

Fraser-Lever has been involved in the Olive Downs Complex in several different ways:

Surface infrastructure Our next involvement with the Olive Downs Complex was the surface infrastructure package, which included all the roads, site-wide water services reticulation, high voltage reticulation, communications services, and drainage between the Mine Infrastructure Area (MIA), Coal Handling and Processing Plant (CHPP), tailings area, mine-effected water dam discharge, communications tower and the Yurika 66/11kV substation. The scope included high voltage electrical design, MIA kiosk substation, water pumping, communications, earthworks, light vehicles and haul road designs. It has also coordinated the electrical protection schemes between Ergon, Yurika, the CHPP and the MIA and finalising the design around the battery limits for earthworks, roads, drainage, and water services between several different area scopes and engineering design houses. The construction of the design has commenced and will be completed later in the year.

• Mechanical equipment design, fabrication, and commissioning • Earthworks roads and drainage • High voltage reticulation and substation kiosk design • Integration of site-wide protection studies and assistance with the Ergon connection agreement • Site-wide water services distribution and pumping • Mine Infrastructure Area (MIA) detail design • Haul road design Mechanical fabrication Our first involvement with the project was the Rejects Gate for the Coal Handling and Processing Plant (CHPP) rejects loadout bin. Fraser-Lever completed the detailed mechanical design, fabrication, and supply of the gate to Sedgman-CPB JV, which is building the CHPP and will be involved in the commissioning later in the year.

Mine Infrastructure Area Our subsequent major involvement with the project has been the MIA design for mining services contractor Thiess. The MIA is required to be able to support the autonomous mining fleet with several different facilities and calibration loops. The scope involved designing temporary facilities that would be used for the initial startup phase and permanent facilities that were built post-startup. The temporary facilities include a heavy vehicle workshop,

Fraser-Lever Australian Mining Engineers & Consultants

stores, a tyre change area, and air compressors. The permanent facilities include repurposing the temporary facilities and creating a purpose-built heavy vehicle (HV) workshop, HV Refuelling area, HV and LV wash pad, explosive reload facility, pit dewatering study, lighting design, sections of the HV autonomous haul road and drainage design.

• Airport design • Substation design • Bulk materials handling design including conevyors, bins, hoppers, trippers, feeders, stackers and chutes Heavy Vehicle Workshop

Administration Area

Temporary HV Workshop

Train Wagon Jacking Scissor Lift Permanent HV Workshop

Summary To summarise our contribution, our scope has been to complete the design to interface with the CHPP, mine infrastructure area, water dams, tailings dams, and 66/11 kV substation. Our multi-disciplinary company, which is relatively small, has been able to respond to changing requirements and resolve the interfaces with many different scopes.

Where does Fraser-Lever fit into the mining market?

Since the creation of Fraser-Lever three years ago, our focus has been: • Non-processing infrastructure to support processing plants • Sustaining capital projects to support existing processing plants in civil, structural, wet plant mechanical and bulk materials handling • Mechanical fabrication of specialist equipment for bulk materials handling, including loadout gates, rail clamps, hydraulic gates • Feasibility studies for complete processing plants, nonprocess infrastructure, camps, and mining infrastructure

What other markets does Fraser-Lever operate in?

Whilst mining dominates our work, Fraser-Lever has fertiliser, sugar, and rail clients, which collectively combine with about 20 percent of our business. We also offer engineering services to construction companies to modify existing designs to assist with constructibility and safety. The construction companies are in varying industries, including water, building services, and transport.

Looking ahead, what are your key priorities and targets for the rest of the year and into 2024?

The key priorities and targets for the rest of the year will be the support of the construction and commissioning stages of the Olive Downs Complex and the support of the mining services contractor as they commence mining operations.

• Structural, mechanical, and electrical audits in processing plants, non-process infrastructure, MIA, and camps • Earthworks design, haul road design, light vehicle road design

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PEMBROKE RESOURCES ASIA PACIFIC

coordinated with the company’s investment strategy as an outstanding asset, capable of development that met the highest environmental and operational efficiency standards.

“The complex is a new Tier 1 steelmaking coal development in the world’s best and most mature basin, surrounded by some of the best coal producers on the planet. As a new mine, it is able to implement a best-of-breed approach to mining, rehabilitation, the environment, and sustainability,” reveals Tudor.

Upon completion and full expansion, the Olive Downs Complex will hold immense potential, boasting over 500 million tonnes of open-cut reserves and an impressive mine life of 79 years. It is set to become one of the world’s largest steelmaking coal mines, capable of producing up to 20 million tonnes of run-of-mine (ROM) 10 | Mining Outlook Issue 4

“THE COMPLEX IS A NEW TIER 1 ST E E L M A K I N G COA L D E V E LO P M E N T I N T H E W O R L D ’ S B E S T A N D M O S T M AT U R E B A S I N , S U R R O U N D E D BY S O M E O F T H E B E ST COA L PRODUCERS ON THE PLANET” – BARRY TUDOR, CHAIRMAN AND CEO, PEMBROKE RESOURCES

steelmaking coal annually.

“The rare asset had been on the radar of Mark Sheldon, Pembroke Resources’ Chief Operating Officer, for over a decade as it was a key pipeline expansion asset of MacArthur Coal,” Tudor adds.

Pembroke Resources has also acquired and developed a steelmaking coal asset in the province of Central Kalimantan, Indonesia,

from greenfield exploration to full production with customers in Southeast Asia and Europe.

“The mining industry is an extremely exciting and fulfilling space to operate in. We are not only providing an essential raw material for one of the most critical materials in the world, but also generating a lot of job opportunities and contributing to state and federal finances,” he reflects.

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PLANNING A PROJECT Considered a rare project in the prevailing ESG and investment landscape, the Olive Downs Complex deviates from the conventional trajectory of major mining companies that are avoiding large greenfield coal developments. Therefore, Pembroke Resources sees it as an opportunity to illustrate a fresh approach to mining that aligns with contemporary values concerning sustainability.

“We operate at the Olive Downs Complex in partnership with world-leading international mining services company, Thiess. The mine is the first project to implement fully autonomous CAT 794 trucks and autonomous drilling at the same site.”

The nature and scale of the project lends itself to implementing this technology to drive superior productivity and sustainability outcomes. The fleet of fully autonomous CAT 794 trucks is a notable achievement of the Olive Downs Complex, as it is pioneering, cutting-edge technology.

It is the first mine in Australia to 12 | Mining Outlook Issue 4

IN T E R E ST ING I ND USTRY FAC TS A ND F I G URE S • The major producers and exporters of metallurgical coal, also known as coking coal, are Australia, Canada, and the US. • Metallurgical coal is an essential ingredient in steel production, making it one of the most widely used building materials on Earth.

• It takes around 770 kilograms (kg) of metallurgical coal to make one tonne of steel.

• The Bowen Basin covers an area of over 60,000 square kilometres running from Collinsville to Theodore.

• Most of the basin’s open-cut and underground mines are located in the north.

• The Bowen Basin is rich in both coal and gas deposits, and it contains almost all of the state’s hard coking coal.

• Global population growth and increased urbanisation will continue to drive longterm demand for steel and the steelmaking coal required to produce it.

“We excel in delivering safe, cost effective and on time solutions for our clients.”

Shaft Drilling to 2.7m

Water Bores

Mine Services

Exploration Drilling

Gas Drilling Services

DEPCO drilling is an Australian owned and family operated drilling business servicing the mineral, mining and agricultural sectors for over 60 years. Our 9 acre facility in Rockhampton consists of fully qualified fabricators, diesel fitters and machinists producing quality customised equipment and integrated drilling systems ensuring client requirements can be met sooner.

• Ventilation Shafts to 2.7m • Goaf and Gas draining • Exploration drilling solutions • Inseam • Oil and Gas exploration • Water monitoring • Artesian bores • Stock and Domestic

60 Years Strong

PEMBROKE RESOURCES ASIA PACIFIC

employ such a fleet and integrate autonomous drills into its operations.

This technological advancement enhances productivity and safety while revolutionising traditional mining practices.

“Construction of the project’s first stage is nearing completion, with production already underway and the rail line and processing plant commissioning expected in January 2024. The first coal sales are expected to follow shortly after,” Tudor informs us.

The project’s first stage will have an annual production capacity of six

million tonnes of ROM coking coal.

Pembroke Resources has outlined plans to swiftly double production capacity, emphasising how the mine was designed and engineered to produce 20 million tonnes per annum and with a modular approach, facilitating future expansions promptly.

A VANGUARD OF THE FUTURE Built in the 21st century, the Olive Downs Complex is designed to meet modern standards. The project will include major infrastructure, including a coal handling and preparation

“ T H E I M P O R TA N C E O F S U S TA I N A B I L I T Y T O P E M B R O K E RESOURCES LIES IN ITS VISION TO G O B E YO N D T H E M I N I M U M REQUIREMENTS AND SET NEW INDUSTRY S TA N D A R D S ” – BARRY TUDOR, CHAIRMAN AND CEO, PEMBROKE RESOURCES

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plant, rail spur, train load-out facility, coal conveyor, stockpiles, electrical transmission lines, water pipeline, and access roads.

“Our priorities remain to complete the construction of this world-class asset on time and on budget and continue production towards mining our high-quality steelmaking coal towards the end of the year.

“While doing this, we will continue to set new standards in environmental and sustainable mining. Even as we strive to achieve these goals, we are equally focused on our first expansion, doubling capacity to 12

LEADERS IN

CIVIL CONSTRUCTION We deliver civil and infrastructure projects to the highest standard. We are known for the quality and reliability of our team and deliver our projects safely, on time and on budget.

We have the resources, experience, capacity and versatility to undertake a wide array of projects, including structural concrete works, bulk earthworks, drainage, infrastructure and services, pavement works, road construction, rehabilitation, camp construction, and camp refurbishment.

Structural concrete Bulk earthworks Mining infrastructure and services Haul roads and dragline pads Camp construction and refurbishment Drainage solutions

Road construction

harlowcivil.com.au

million tonnes per annum as soon as it is practical to do so,” finishes Tudor.

As a coking coal project, the Olive Downs Complex will be one of the world’s largest open-cut coking coal mines. At its peak, the mine is expected to produce 20 million tonnes of steelmaking metallurgical coal annually. This will be transported by rail to the Dalrymple Bay Coal Terminal for export to key 16 | Mining Outlook Issue 4

international markets such as Japan, India, and South Korea.

The high-quality steelmaking coal produced from the mine will also contribute to national and state economies as well as much-needed infrastructure worldwide.

Importantly, Pembroke Resources is providing the opportunity for people to live in towns near the mine, including Moranbah and Dysart, and

is building sustainable futures for the communities in which the Olive Downs Complex operates.

PEMBROKE RESOURCES admin@pembrokeresources.com.au www.pembrokeresources.com.au

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LET’S WORK TOGETHER South East Elevation’s truck-mounted Cherry Picker is a modern minecompliant premium piece of equipment, uniquely designed to provide a convenient and safe working at heights service in the Mining, Civil & Environmental Industries. During our recent Greenfield project at Pembroke’s Olive Downs Mine, our compact and easily accessible EWP has proven to be reliable and has been used for a multitude of applications over 18 months.

SERVICES & EQUIPMENT • •

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18 metre truck-mounted EWP (Wet Hire) Licenced and experienced EWP operator with 15 years’ experience in arboriculture Highly competent team with: Standard 11 & coal board medical compliance Working at heights certification Licenced to operate a boom over 11 metres.

Experience in the Civil and Mining industries including working alongside heavy machinery.

Experienced fauna spotter/ catcher for environmentally sensitive projects Husband and wife team with ability to mobilise quickly and travel Australia-wide.

ENVIRONMENTAL AND CULTURAL APPLICATIONS AT HEIGHTS • •

• •

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Tree trimming & removal – electrical transmission line; mine access roads; railway corridor Habitat nest boxes installed into tree canopies, including in environmental offset areas to increase dens for existing, and relocated native species. We can supply and install quality boxes and assist ecologists with fauna monitoring/tracking programs using current technology and our unique ability and experience to work safely at heights.

Safe relocation of native species directly into suitable habitat boxes from the EWP basket Checking inside tree hollows for native fauna prior to clearing works and monitoring bird nests and their hatchlings Working with local cultural heritage consultants to assist in the relocation of scarred trees to their keeping place.

Contact the team at South East Elevation Pty Ltd for your next project: 0431776775 southeastelevation@gmail.com www.sunshinecoastcherrypicker.com.au/

C2C Mine Maintenance stands out as a premier provider of comprehensive mine fleet maintenance solutions. Our offerings include vehicle fit outs, compliance inspections, certified brake testing, ongoing fleet maintenance repairs & a fully stocked warehouse of compliance components. The proficient team at C2C thrives on projects of any size, combining over 50 years of experience with an unwavering commitment to excellence. Operating 24/7 from Brisbane to Cairns and out to the Isa, our dependable services underscore out deification to meeting our clients’ needs promptly.

C2C took pride in our collaboration with Pembroke at their Olive Downs Complex, establishing a comprehensive, cloud-driven program for compliance inspections ensuring continuous inspections capabilities reducing downtime & increasing safety.

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PEMBROKE RESOURCES Suite 1901, Level 19 Gateway Building, 1 Macquarie Place Sydney NSW 2000 Tel: 02 9231 1400 admin@pembrokeresources.com.au www.pembrokeresources.com.au

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