A mining lease has been granted pertaining to a greenfields underground longwall operation, Ironbark No. 1, that is anticipated to produce up to 6 million tonnes of coal per annum.
This news marks another big win for Mackay and Moranbah following on from the recent announcement of a $1 billion Olive Downs mine.
The mining lease was awarded to Fitzroy Australia Resources who acquired the mine, Ironbark No.1, as well as neighbouring Carborough Downs mine and the Broadlea project from Vale over two years ago.
Production at Ironbark No.1 will be of primarily low-ash hard coking coal for steel production, where the first coal delivery is expected by mid-2020.
Grant Polwarth, Fitzroy Australia Resources CEO, said he was excited to have reached this major milestone in the growth story of the company.
“This approval allows us to pursue our vision for the expansion of Fitzroy, providing opportunities to our existing workforce, the local community and the region more broadly,” Mr Polwarth said.
“Ironbark No. 1 will be a modern and innovative underground operation,” Mr Polwarth said.
“At Fitzroy, we pride ourselves on being a people business that mines coal, and the construction of Ironbark No.1 will see that vision continued.”
The underground metallurgical coal mine will utilise major infrastructure alongside the company’s existing Carborough Downs Mine.
Mines Minister Dr Anthony Lynham awarded the mining lease to Fitzroy Australia Resources, for the Ironbark No. 1 mine, earlier this month.
“This project offers around 20 years of jobs for regional Queensland communities - with 160 contractors during construction, and up to 350 operational staff,” Dr Lynham said.
“Ironbark No.1 comes on top of the 13 committed resources projects in Queensland with a combined capital value of more than $9.4 billion across multiple commodities."
“Another 42 projects are at feasibility stage, with a combined capital value of more than $65 billion, again, across multiple commodities."
“Queensland remains a global resources investment magnet, as our $56 billion resources sector generates thousands of jobs and business opportunities and royalties to pay for our teachers, doctors and nurses.”
Minister Julieanne Gilbert , Member for Mackay, touted the project’s regional benefits.
“This is great news for Mackay and coalfields families, and businesses, especially those affected by the recent job losses at Hail Creek,” she said.
“It shows that the resources sector continues to offer bright prospects for our region well into the future.”
Source: Queensland Government