Lincoln Minerals

The Hon. M.C. PARNELL (14:40): I seek leave to make a brief explanation before directing a question to the Minister for Sustainability, Environment and Conservation about Lincoln Minerals and groundwater on Lower Eyre Peninsula.

Leave granted.

The Hon. M.C. PARNELL: I draw the minister's attention to the decision of the Environment Resources and Development Court made on 13 August this year concerning the Lincoln Minerals Ltd proposed mine in the Prescribed Wells area on Lower Eyre Peninsula. The court case was against the Minister for Sustainability, Environment and Conservation and related to a decision to refuse a licence to the company for what was effectively the de-watering of their mine. The proposed mine is at Gum Flat near Port Lincoln and it is located within the Prescribed Wells area, which is the prime source of potable water for much of Lower Eyre Peninsula. Members would know that there have been water restrictions in that part of South Australia for many years.

My understanding is that in the court case the government tendered technical evidence to the court relating to the connectivity of aquifers in the area and across the Prescribed Wells area. The significance of this evidence is that, if de-watering was to occur, it would not just affect the immediate vicinity of the mine, but the water could also flow from other aquifers in the area to the point of de-watering, which means that the impact is not localised but could be spread over a wider area. My questions of the minister are:

1. What is the impact of this court decision on future mining proposals in the Prescribed Wells area of Lower Eyre Peninsula?

2. What are the implications of this decision for the water allocation plan that is currently under development?

3. Given the new evidence of the interconnectivity of groundwater resources in Lower Eyre Peninsula, when will the government undertake an appropriate hydrological survey to determine these connections and to provide greater certainty to farmers and others who rely on this water resource?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (14:42): I thank the honourable member for his most important question on a very important court case. I am advised that Lincoln Minerals is developing a mining lease proposal for the Gum Flat Barns iron ore deposit located on Eyre Peninsula. The Barns iron ore deposit is located within the Southern Basin Prescribed Wells Area, 500 metres to the east of the defined Uley East freshwater lens.

I understand that Lincoln Minerals initially applied for a water licence for 2,190 megalitres from the basement aquifer. This volume is 1,755 megalitres above the 435 megalitres currently available for allocation under the Southern Basins Water Allocation Plan. In accordance with the Natural Resources Management Act 2004, Lincoln Minerals was refused this water licence application of 2,190 megalitres.

Whilst Lincoln Minerals has proposed to re-inject up to 1,900 megalitres extracted from the mine into an adjacent shallower aquifer, hydrogeological assessment has not substantiated that the aquifers are connected; therefore, the injected water would not mitigate any impacts on the basement aquifer, I am advised, if that is the case.

As well as appealing this original decision, Lincoln Minerals also subsequently submitted a new application seeking to extract 435 megalitres per annum from the basement aquifer. In accordance with the NRM Act, Lincoln Minerals was advised that its water licence application for 435 megalitres was refused on the basis that it did not comply with principles 15 and 16 of the Southern Basins Water Allocation Plan.

As well as withdrawing its appeal of its original application, Lincoln Minerals appealed the decision to refuse its most recent application for a water licence in the Environment, Resources and Development Court. The matter was heard in the ERD Court on 29 July of this year and the reasons and outcomes were published on Wednesday 13 August. The appeal was allowed based on advice received from the Crown Solicitor's Office and my department. I have determined not to appeal the decision in the ERD Court regarding Lincoln Minerals' water licence application. I am advised that I should issue the licence and consider appropriate conditions on the licence.

I understand, of course, community concerns about the risk of this proposed development to Eyre Peninsula's water security and will attempt to mitigate any potential risks through those conditions that will be imposed on the water licence. These conditions will ensure appropriate monitoring around the proposed mine site to assess changes in aquifer water levels against predicted levels. These conditions will ensure we are able to detect and respond to any unacceptable impacts on the security of Eyre Peninsula's water supply. A draft water licence will be provided by the Crown to the Crown Solicitor's Office for advice prior to it being issued, but for the reasons I have given and the reasons that have been tendered to me I have no other course of action that I can pursue.