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Mining woes

WITH applications now open for minerals exploration in parts of western Victoria, including around the Grampians and near Hamilton, companies can now search for a range of different resources in the ground – but the ripple effects may extend further than just in the areas close to the research activity.

Some locals north of Glenthompson cite environmental issues and aren’t keen to see the drilling following the lifting on May 2 of an exemption which temporarily restricted minerals activities across an area of around 11,000 square kilometres.

Additionally, with one potential site right under the Maroona to Portland railway line nearby, the resumption of exploration could require a diversion to be built in the future.

Following the resource minister’s announcement earlier this year, Minerals Exploration Licence applications can now be made for ground which has potential to uncover copper, other base metals and gold, along with mineral sands and gypsum.

The newly available ground covers parts of the Wimmera, north and east of Hamilton, and around Mortlake, from within the geological zone known as the Stavely Arc.

Exploration is different to mining, as an exploration licence gives the holder exclusive rights to search for evidence of minerals within an area using mostly low impact methods, such as mapping, surveying, soil sampling and drilling.

It is expected that minerals exploration companies work closely with traditional and local landowners, as well as the broader community, in addition to meeting strict regulatory conditions.

Licence applications will be accepted for assessment on a first-in basis.

Multiple applications for the same area received on the same day will be subject to a competitive assessment and subsequent public comment process run by Earth Resources Regulation.

Successful applicants will be required to publicly consult on any licence application before it is considered for approval.

The Geological Survey of Victoria (GSV) has been briefing and updating stakeholders across western Victoria about the current state of exploration and talking to communities about landholder access rights.

GSV director, Paul McDonald, said he was hopeful the region has substantial amounts of high-value resource.

“There is keen interest in the mineral potential of western Victoria and what is known in geological terms as the Stavely Arc, which was formed in a similar way to the copper-rich Andes in South America,” he said.

“Demand for gold, copper, and other materials used to make technology and renewable energy products is high and we are seeing more companies investing in exploration activities across regional Victoria – they are spending seven times the amount they were six years ago.

Mr McDonald said the lifting of the exemption did not mean environmental and local community issues would be ignored.

“Minerals exploration is not permitted in national parks, wilderness parks, or state parks; explorers must obtain consent of landholders before accessing private property,” he said.

Despite this assurance, Glenthompson local, Helenmary Macleod, said she and other nearby residents remained concerned about tourism and the wildlife in the area.

“The Victorian State Government is at a complete contradiction to itself in its push for increased exploration in an area so close to one of the State’s iconic national parks,” she said.

“This flies in the face of its own Biodiversity 2037 plan to stop the decline of our native plants and animals and improve our natural landscape.

“Victorians value nature and value our state and national parks (including) the newly developed Grampians Peaks Trail.

“This has huge implications on agriculture and tourism within our region and our communities need to make sure mining companies and government departments are completely transparent in their transactions.”

About six kilometres north-east of Glenthompson is an area of interest, where if a mining licence was granted, the Portland Railway Line would possibly need to be diverted around an open cut mine expecting to extract copper and gold from porphyry - a specific texture of igneous rock which is formed from magma.

Given the deterioration of the track and its derating over the last few years to 19 TAL (tonnage axle load) and speed restriction of 40 km/hr, those interested in the line’s continued and future use might consider this latest revelation either a serious concern or good news that a short section of the track might even be entirely renewed.

Stavely Minerals chief operating officer, Mark Mantle, said it was too early to tell if the company will consider the site economically feasible to offer a definitive statement on the railway.

“We're just finishing our resource drill-out to define the ore body and it does intersect and cross over the rail line,” he said.

“We're just carrying out … the very first step and very preliminary, almost high-level order of magnitude studies to work out, is the ore body large enough and technically, can we extract the copper?

“So, to actually determine … is it worth it? Can we develop a mine there?

“Once we've finished the study, which is probably in about six (to) eight weeks’ time, then we probably have another couple of years’ worth of further technical studies, as we get more accurate and refined on the decision, and it's in that phase that we probably start looking at now we intersect or interact with the rail.”

Mr Mantle said as only about one in 500 explorations actually ends up becoming a mine, the company couldn’t speculate on what solution they might implement, but admitted there were a range of options open.

However, other locals have doubts about the economic benefits too - a few kilometres further north-east at Willaura, Lois Reynolds said the farm she is on has had a request for exploration in the past, but they declined after discussing it as a family.

“My husband (initially) thought, ‘oh there’s no problem there, just let them have a go’,” she said.

“And the girls (said) ‘hold on dad, what are they really proposing, where’s this going?’”

Ms Reynolds said she looked into similar scenarios by consulting a friend involved with an exploration company working in NSW and wasn’t convinced it would be beneficial for the area.

“A good example of a future scenario here, is the case of Geopeko Northparkes Mines which started by exploration in 1975,” she said.

“It now has a 2000-hectare footprint that back in 1985 was cropping and pastoral country similar to this district.

“Porphyry-style deposits are large tonnage but low-grade deposits; mining and processing the ores involves very, very large volumes of rock.

“As a family we did not wish to go down this track, the biodiversity of the river and wetlands of our region was too precious to be disturbed.

“While their proposal to drill five air core holes on our family farm at first appears discreet, as a farming family we felt that this could be the thin edge of an exploration wedge.

“Who knows where it might end?”

She also disputed the claims of great economic benefit to local communities.

“Our local community of Willaura has been part of the present exploration program by Stavely Minerals,” Ms Reynolds said.

“Our local pub was sold to an exploration company and houses the workmen who are on site at the drilling rigs. We were told that this would be a wonderful opportunity for our town.

“So far jobs have been outsourced to Ballarat and I have seen no evidence of contributions made to our community so far.”

With the projections of an increasing gap between copper supply and demand globally of up to 15 million tonnes by 2035, the incentive for minerals exploration isn’t likely to diminish and the subsequent tension between those market forces and localised environmental concerns will continue.

Information about the process for licensing and where ground is available can be found at earthresources.vic.gov.au/stavely.

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