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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-10-13 Daily Xml
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IRON ORE, EYRE PENINSULA

The Hon. CARMEL ZOLLO (14:45): My question is to the Minister for Urban Development and Planning. Will the minister outline the decision to approve a bulk handling facility at Port Lincoln and the long-term outlook for iron ore mining on Eyre Peninsula?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:45): I thank the honourable member for her important question. Earlier this month I granted conditional approval to Centrex Metals to establish bulk-handling facilities at Port Lincoln, that is, adjacent to the current grain bulk handling facilities, using some of the facilities which are already in place.

This approval marks a further significant step in the emergence of a new mining industry on Eyre Peninsula. It is also an important step in the development of South Australia's mining industry and the state's re-emergence as a major supplier of iron ore to the world. The 10-year mining lease granted to Centrex Metals for its Wilgerup iron ore project on South Australia's Eyre Peninsula highlights the continued confidence of the state's mineral sector.

The Wilgerup project follows on the success of OneSteel's Project Magnet in the Middleback Ranges and will create both jobs and export income to support the South Australian economy into the next decade and beyond. I am advised that the Wilgerup mine, near Lock, will generate up to 150 jobs and inject $70 million a year into the regional economy.

The approval of a bulk-handling facility at Port Lincoln has been limited to 10 years, which sends a strong message to Centrex and other resource companies that Eyre Peninsula's long-term future depends on the development of a new port. Clearly, Eyre Peninsula will need a large and more significant port that will take the huge cape size vessel, a 200,000 tonne vessel, which needs deep water in excess of 20 metres.

There are significant iron ore deposits on Eyre Peninsula that ultimately need the volume to be taken out of the new port, and, arguably, the grain industry would benefit from having a larger port in deeper water. A new port closer to the mines and in deeper water really will improve the economics of the industry, and that is why Centrex has found a site at Sheep Hill just near Tumby Bay.

That is the long-term solution, but to kickstart the iron ore industry and to generate the cash flow to enable the further development of port infrastructure I have approved an iron ore loader at Port Lincoln with a number of restrictions. Throughput will be limited to about 1.6 million tonnes per annum and will be restricted to iron ore mined at the Centrex Metals Wilgerup exploration lease.

In all, there are 12 conditions, including environmental monitoring, to ensure that there is no visible dust and no leakage into the harbour, and there are also restrictions on the hours that the rail cars can operate through the port. This approval is based on a recommendation of the Independent Development Assessment Commission and is subject to stringent licensing requirements approved by the Environmental Protection Authority.

The Development Assessment Commission's review of the application included a high level of consultation with the community, the industry and state and local government agencies. DAC found the application is consistent with Port Lincoln's current planning policies, given that the Centrex development is located within an existing port and will be subject to strict compliance with the EPA's licensing requirements. I have accepted its independent expert advice.

The Centrex Metals development comprises changes to existing buildings, a new conveyor system, construction of a vehicle wash down and daily checks facility and a new ship loader. While there has been some local opposition to the project, including concerns about the potential impact on the aquaculture industry, I am confident that all environmental considerations have been taken into account in the conditions imposed on the development.

As a former fisheries minister, I am very aware of the importance of the fishing and aquaculture industries to South Australia's economy and to the livelihood of Eyre Peninsula. I am thoroughly convinced that mining and the aquaculture industry can coexist in Port Lincoln through the safeguards imposed by the approval conditions.

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