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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-03-07 Daily Xml
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Ministerial Statement

Andromeda, Great White Kaolin Project

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:04): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: Last week, the South Australian government approved Andromeda Metals' operational plan to commence mining operations at its Great White Kaolin Project. This will be South Australia's first kaolin mine. With an approved program for environmental protection and rehabilitation, Andromeda takes a step closer to transitioning from a mineral explorer to a mine developer.

This project, 65 kilometres east of Streaky Bay, has been several years in the making. While kaolin was first discovered here in 1984, it was in 2018 that Andromeda and Minotaur entered into a joint venture to progress this project. After a short period of further exploration, Andromeda submitted an application for a mining lease in February 2020. This demonstrates the importance of mineral exploration and the time it takes to identify, define and de-risk mineral projects, the care that must be taken to ensure our explorers engage and communicate with the communities that host them and, importantly, the commitment it takes to turn a discovery into a mine.

At the time of submission, the mining lease application underwent public consultation, and the majority of the submissions, over 60 per cent, showed support for the project. It is unsurprising that this project has support from locals on the Eyre Peninsula, with this project providing up to 40 direct jobs upon commencement and expected to increase to 70 jobs at full operation. These will be new jobs with Andromeda making a commitment that, where possible, jobs will be filled by locals first and foremost.

Operations for the next 13 years have been approved. However, the potential for this project goes further. The identified 34.6 million tonne resource estimate provides the mine with an estimated potential life of 28 years. This resource is particularly exciting because the Great White deposit contains some of the highest purity kaolin ever discovered.

Kaolin is used in ceramics, plastics and is in every modern home and car in some form. Natural halloysite, which is a rare form of kaolin present in the Great White deposit, has emerging high-tech applications, including batteries, supercapacitors and energy storage technologies and for carbon capture and storage and hydrogen storage.

Andromeda is furthering research in this field through its venture, Natural Nanotech. They are helping to pursue commercially viable applications that help solve high-profile environmental issues. We expect to see activity on the site soon. Early-stage works for construction is anticipated to proceed in the coming months.

Andromeda's approved mining operation involves a conventional open-pit mine, a processing facility expected to process around 300,000 tonnes of ore per annum and other key infrastructure for mining operations. The mine will produce around 150,000 tonnes of kaolin per annum, generating profits for the company, product for industry, local benefits and, most importantly, royalties for the state.

In addition to local jobs and investment in the region, the local community stands to benefit from planned infrastructure upgrades of roads in the region. To accommodate the transport of the concentrated and refined final product by B-double trucks, Andromeda is supporting the upgrade of the intersection of Poochera-Port Kenny Road with Streaky Bay Road and will also upgrade and undertake ongoing maintenance of the Poochera to Port Kenny Road.

Andromeda is also responding to community feedback and has committed to not operate trucks along this road during school bus travel times. These outcomes are an excellent example of the shared benefits that result from meaningful engagement by mineral exploration and mining companies. This project stands to be a shining example of mining in South Australia that is in the state's best interest.

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