Company blocked from mining next to the Bird in Hand winery lobs court challenge

A company will fight the state government’s decision to block it mining gold next to the Bird in Hand winery in the Adelaide Hills.

Bird in Hand Winery at Woodside in the Adelaide Hills.

Terramin Australia, which in February had its plans to mine gold next to the Bird in Hand winery in the Adelaide Hills blocked by the state government, will challenge that decision in the Supreme Court.

In February wineries and agriculture businesses at Woodside were celebrating a momentous win after a 14-year battle against the company’s gold mining plans, with Energy and Mining Minister Tom Koutsantonis blocking Terramin Australia’s mining lease application.

Mr Koutsantonis said at the time declining to grant the project approval was not a decision he took lightly, but he was “also acutely aware of community concerns about the proposal, including from nearby wineries, residents and the local community’’.

“The area of the proposed mine is home to a world-class viticulture industry, producing some of Australia’s best-loved wines.

“Tourism to the region is a critical contributor to the local economy and, on balance, there remains a possibility this proposed short-term mine may adversely affect the established and significant long-term agricultural and tourism industries of the Woodside area immediately adjacent the project areas.

“As such, I am not willing to risk these established local industries against the opportunity this short-term mine may provide, and have decided it is in the state’s interest to decline the Mining Lease and Miscellaneous Purposes Licence applications by Terramin for its Bird in Hand Gold Project.’’

Terramin has now announced, in a statement to the Australian Securities Exchange, that it had started legal proceedings challenging the Minister’s decision, and also a proposal put to the Governor to “reserve” the area which contains the gold deposit, which would prevent any mining in the future.

“Terramin has filed legal proceedings in the Supreme Court of South Australia seeking judicial review of the refusal of the applications and the making of the recommendation to the Governor,’’ the company said.

“Terramin contends, amongst other things, that each decision should be set aside on the basis that the decisions misapprehended the statutory power in the Mining Act 1971 (SA), were legally unreasonable, did not take into account relevant considerations, took into account an irrelevant consideration, and that Terramin was not accorded procedural fairness.’’

A spokesman for Energy and Mining Minister Tom Koutsantonis said the government stood by its decision.

“Obviously we will not be providing comment on a matter before the courts, other than to say that the Government followed proper processes and we stand by our decision,’’ he said.

“We will vigorously defend ourself against this action.”

Jim Franklin-McEvoy who heads up the Inverbrackie Creek Catchment Group said it was disappointing the issue had reared its head again, but they were confident the government’s decision would stand.

“It’s a mine that can’t possibly work safely. They’re just having another dig at it, if you like. It’s very disappointing.’’

Terramin shares closed 8.7 per cent higher at 2.5c.