Bravus Mining and Resources has announced plans to ramp up production at its Carmichael thermal coal mine by a third over the next four years to 16 million tonnes per annum.
The expansion would involve about $500 million in capital investment and 600 jobs during construction, subject to approvals, according to the State Government.
This was on top of an initial $50 million committed for works in the next two years to pave the way for the boost, it said.
Bravus said demand for the type of coal mined at the Carmichael site, near Clermont, was increasing as developing nations industrialised and the uptake of AI and big data burgeoned around the world.
Bravus chief operating officer Mick Crowe said the Carmichael mine had safely and efficiently ramped production up over the past three years to more than 10 million tonnes per annum.
“This new investment will increase Carmichael’s output by a third and create more benefits for Queensland,” he said.
“Our investment in the infrastructure to support this growth means more contracts for local businesses and suppliers and more high-paying mining industry jobs for people living in places like Clermont, Rockhampton, Mackay, Bowen, Townsville, and Cairns.”
Engineering studies and assessments have been completed, and work to deliver increased production will begin with adding capacity to the Carmichael mine accommodation village.
State Treasurer David Janetzki said the initial $50 million investment was secured despite an agreement struck between Bravus and the former Labor Government in 2020 that allowed the mining company to defer royalty payments.
He said the Crisafulli Government had not made any changes to the coal royalty tiers introduced by Labor in 2022 but had secured the expansion of the mine, bringing an end to a lengthy legal process.
“We were locked into this deal by the former Labor Government but at the table we’ve worked extremely hard to ensure we get hundreds of jobs in return, something the former Labor Government did not do,” Mr Janetzki said.
“I want to be very clear there will be no additional royalty deferrals because they were negotiated and locked in by the former Labor Government and Bravus will be required to repay every cent to Queensland taxpayers – with interest.
“This is about a stable and calm government working on driving greater investment into the State, securing a better deal, which means we can deliver critical jobs in our regional cities and towns.”
Natural Resources and Mines Minister Dale Last said more than 400 coal-fired power stations were under construction around the world, mostly in China, India and South-East Asia, and that Queensland was well positioned to meet that demand.
“Queensland has the world’s best coal reserves, and this expansion is proof that by giving industry certainty, we can attract the right investment to create long-term jobs for mining families and keep our coal communities strong,” he said.