The South Australian Minister for Energy and Mining, Tom Koutsantonis, has rejected an application by Terramin Australia to develop an underground gold mine at Woodside due to the project’s potential impact on the region’s businesses, tourism and overall reputation.
Terramin’s concept for its proposed Bird in Hand mine, and related applications for a Mining Lease and a Miscellaneous Purpose Licence, have undergone comprehensive assessment by the State Government, including an eight-week statutory public consultation.
The process involved Terramin undertaking extensive work to respond to questions raised by community and government technical experts.
The Department for Energy and Mining advised that Terramin’s proposal satisfied the relevant statutory obligations, however, considerations were made concerning broader state interests such as potential socio-economic and amenity impacts and the effect on existing industries – including tourism – and the local community.
The South Australian Government notes that although the proposed mine would have had a short-term life, the potential impact on surrounding businesses – including world-class wineries such as Petaluma and Bird In Hand – and associated regional tourism could have longer-term implications.
The State Government said the Adelaide Hills region enjoys a well-earned clean, green reputation, and this must be safeguarded.
Mr Koutsantonis said it was not an easy decision to make but decided it was in the state’s interest to decline the lease for the project.
“Tourism to the region is a critical contributor to the local economy and, on balance, there remains a possibility this proposed short-term mine may adversely affect the established and significant long-term agricultural and tourism industries of the Woodside area immediately adjacent to the project areas,” Mr Koutsantonis said.
“As such, I am not willing to risk these established local industries against the opportunity this short-term mine may provide, and have decided it is in the state’s interest to decline the Mining Lease and Miscellaneous Purposes Licence applications by Terramin for its Bird in Hand Gold Project.”
The Association of Mining and Exploration Companies (AMEC) has expressed disappointment with the decision.
Chief Executive Officer of AMEC, Warren Pearce, said it was a major blow for the entire industry.
“It is a devastating result for the team at Terramin that have worked incredibly hard to deliver this project, through an exhaustive five-year approvals process.
“This decision is a massive setback for the hopes of growing the mining industry in South Australia and reinforces a widely held view that South Australia isn’t serious about developing new projects.”
Mr Pearce said industry and investors will now be hesitant to invest in South Australia.
“The South Australian Government purports to be seeking major investment in mining, hydrogen and renewable projects, but doesn’t seem to realise that these multi-billion-dollar investments will only be made in jurisdictions that are supportive of new developments,” Mr Pearce said.
Since April 2017, the company has engaged with requests from South Australia’s Department for Energy and Mining (DEM), the Department for Environment and Water (DEW), and the Environment Protection Authority (EPA) to provide additional technical advice relating to the project.
“The Company recognised the unique characteristics of the mine’s location and adopted plans to work with neighbouring wineries and communities, to ensure multiple land use could be effectively balanced and sensitively managed,” Mr Pearce said.
Applications for the mine operation were lodged with the Department for Energy and Mining in June 2019. The assessment, led by DEM with referral to technical experts across various agencies, considered whether Terramin can demonstrate that the 265,000-ounce Bird in Hand gold resource can be efficiently and effectively mined, without unacceptable impact to the environment or third parties.
The application and response documents have included several government requests for clarification. Terramin’s response to the most recent request for clarification was received in December 2021, after which the Government was able to initiate the formal assessment process.
