New investment to boost production and create jobs at Carmichael mine

Bravus Mining and Resources has announced that it will inject a substantial $50 million capital investment over the next two years to expand works at the Carmichael coal mine, and the Queensland Government welcomes this fresh investment into Central Queensland’s resources sector. 

This significant investment will support the expansion of the mine’s workers village, a new water dam, the construction of a rail network maintenance hub, additional mine site infrastructure, and engineering works. These works will ultimately boost the mine's production capacity over the next four years to 16 million tonnes per annum.

“Over the last three years our Carmichael mine has safely and efficiently ramped production up to more than 10 million tonnes per annum, which has boosted the Queensland economy and created thousands of jobs in regional Queensland. 

“This new investment will increase Carmichael’s output by a third and create more benefits for Queensland. 

“Our investment in the infrastructure to support 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. 

“It also means Carmichael will remain strategically positioned to efficiently deliver high0quality Queensland thermal coal to the global seaborne coal market at scale,” Bravus Mining and Resources Chief Operating Officer Mick Crowe said. 

“We are sending a strong signal that Queensland is open for business because we are serious about delivering a better lifestyle through a stronger economy. 

“We are taking important steps to rebuild Queensland’s reputation as a place to invest, because we back the future of our regional communities who rely on a thriving resources sector,” Premier David Crisafulli said. 

The initial $50 million commitment from Bravus will help underpin the expansion of production at the Carmichael mine by about one third over the next few years. It will involve $500 million in additional capital investment as well as 600 new jobs during construction – subject to approvals. 

The new investment was secured despite an agreement signed by Bravus and the former Labor Government in October 2020 that made the mining company defer royalty payments. 

However, the current State Government had not made any changes to the coal royalty tiers introduced by the previous government in 2022 but had secured the expansion of the mine and the hundreds of jobs attached to it. This finally brings an end to a lengthy legal process. 

Expanding the production capacity of the mine is critical due to the increase in global demand for the type of thermal coal mined at Carmichael. The increase in demand is the result of industrialising of developing nations while their citizens are seeking a modern lifestyle with reliable energy for better health, education, and employment as well as by the uptake of AI and big data around the world. 

In addition to the new investment, Bravus has also appointed MacKellar Group as the mining services contractor for the Carmichael mine. The $2 billion deal will be executed over the next five years and it will include risk and reward mechanisms designed to align MacKellar Group with Bravus’ goal of maximising efficiency and production at the mine. 

“We are 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. 

“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,” Treasurer David Janetzki said. 

“Global demand for high-quality coal is forecast to continue for many years to come, but the former Labor Government’s unpredictably anti-mining policy sent investor confidence off a cliff. 

“The Crisafulli Government backs our Queensland’s hard working mining families, and we’re creating an environment where industry can plan with confidence to create more jobs and opportunities from the Bowen and Galilee Basins through to Rockhampton, Mackay and Townsville. 

“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,” Minister for Natural Resources and Mines Dale Last said. 

Source: Queensland Government – Media Statements; Bravus Mining and Resources; Australian Mining (1, 2); Yahoo! Finance