ANNOUNCEMENT 01 Jul 2021

On July 1st, 2021, the Australian government-funded Northern Australia Infrastructure Facility (NAIF) has announced the approval of a loan to Pembroke Resources.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Assistant Minister for Northern Australia. Home. Landry. Media Releases. Assistant Minister for Children and Families. "NAIF supporting jobs in Central Queensland coal project" of 1 July 2021. Available at:
https://www.minister.industry.gov.au/ministers/landry/media-releases/naif-supporting-jobs-central-queensland-coal-project

Northern Australia Infrastructure Facility. Media. News. "NAIF to provide $175 million to job creating Central Queensland coal mine" of 1 July 2021. Available at:
https://naif.gov.au/media-releases/naif-to-provide-175-million-to-job-creating-central-queensland-coal-mine/

Pembroke. Media. Press releases. "Pembroke Resources secures NAIF Funding for Olive Downs Project" of 1 July 2021. Available at:
https://www.pembrokeresources.com.au/media/20210701%20Media%20Release_NAIF%20FINAL.pdf

Inception date: 01 Jul 2021 | Removal date: open ended

State loan

On July 1st, 2021, the Australian Government-funded Northern Australia Infrastructure Facility (NAIF) approved a loan of AUD 175 million (USD 131 million) to Pembroke Resources, an acquirer and developer of steelmaking coal assets. 

The objective of the financing is to fund the first phase of the Olive Downs Steelmaking Coal Complex project in the Bowen Basin of Queensland. According to the Minister for Northern Australia, Michelle Landry, the project includes the construction of "rail and transmission lines, access roads, water pipelines, and a coal handling preparation plant." It is expected that the Agripower expansion project will create around 700 temporary positions during construction and 500 permanent jobs while injecting around AUD 10 billion (USD 7.5 billion) into the local economy over the mine's lifetime.

With the announcement of this project, the NAIF has invested over AUD 1.2 billion (USD 898 million) in over 11 projects in Queensland. Please, see related state acts.


Northern Australia Infrastructure Facility (NAIF)
NAIF is an AUD 5 billion lending facility created by the Australian Government to finance infrastructure projects located in northern Australia or with significant impact for that region, and that are of public benefit and engage the indigenous people (please, see related state acts).

The loans provided by NAIF have a lower interest rate than commercial lenders and borrowing tenors of up to 30 years.

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