A huge expansion of the Olympic Dam mine in outback South Australia has been given environmental approval by the Federal Government.
Environment Minister Tony Burke has announced the approval and says it follows a rigorous assessment process.
He says BHP Billiton’s proposed mine expansion near Roxby Downs has been approved under the Environment Protection and Biodiversity Conservation Act.
The minister says the Federal Government will impose strict conditions, both while the mine operates and for many years beyond.
More than 100 environmental conditions will apply to the BHP Billiton copper, gold and uranium mine.
The Government says an offset area of about 140,000 hectares will have to be created for conservation and environment programs, an area eight times the size of the mining operation itself.
The minister says the approval process involved bodies including the Australian Radiation Protection and Nuclear Safety Agency, the Supervising Scientist and Geoscience Australia.
Mr Burke says the project will adhere to the highest of standards.
“These reviews made recommendations to ensure that the proposal meets world-best practice environmental standards for uranium mining and ensure management of native species and groundwater resources,” he said.
“The conditions apply to all parts of the project, including the proposed desalination plant in the upper Spencer Gulf and will ensure that the Gulf and its marine life, including the giant cuttlefish, are protected.”
Announcing the South Australian Government’s support, state Mineral Resources Minister Tom Koutsantonis told a news conference in Adelaide the public could rest assured the environment will be protected.
“The [South Australian] Government has brought in place the most stringent environmental approvals ever given to a mine expansion in Australian history and we’ve done so because it’s controversial and… it’s the right thing to do and if BHP want to have a social licence to operate in this state they must adhere to the very highest environmental standards set by the parliament of South Australia,” he said.
Mr Koutsantonis said a new airport would replace the current one serving the region, a new gas-fired power station and supply pipeline from Moomba would be built and there would be additional rail and road infrastructure.
The planned Port Bonython desalination plant would be connected to the expanded mine by a 320-kilometre pipeline.
The SA minister said greenhouse gas emissions and air quality in the region would be monitored stringently.
He said legislation to finalise the mine expansion plan would go to the SA Parliament soon.
“I anticipate an agreement can be reached soon so that legislation ratifying the indenture can be introduced and passed by [the South Australian] Parliament before the end of the current session,” he said.
Thousands more jobs
BHP Billiton CEO Marius Kloppers said the planned mining expansion was part of $80 billion worth of proposed capital investment by the company over the next five years.
Mr Kloppers is hopeful the Olympic Dam expansion will start next year.
The expansion would turn the site into the world’s largest open-cut mine, with the open pit swallowing the existing underground mine.
There are 6,000 construction jobs promised and a further 4,000 permanent jobs for the expanded operation.
The nearby town of Roxby Downs would double in population to about 10,000.
The expansion would require huge volumes of water for mining, which is why Port Bonython has been chosen for a desalination plant at the top of Spencer Gulf.
Some environmentalists have expressed concern for the future of giant cuttlefish breeding grounds there.
There are also concerns about how water demands could deplete underground supplies in the outback.
The group Friends of the Earth says the Federal Government has now approved the biggest uranium mine in the world.
It says it is worried neither federal nor state conditions on the approval will adequately address the massive environmental impact of the mine expansion.
The group claims billions of tonnes of radioactive waste will remain on the surface.
It argues tailings dams would leak 8 million tonnes per year for the first decade of the expanded operation.