Terramin gold mine — planned for near Adelaide Hills wineries — could submit lease for approval ‘within weeks’

A gold mine proposed near three Adelaide Hills wineries is preparing to seek official approval — but opponents say they “can’t see that this can be made safe”.

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The company behind a contentious gold mine plan next to the Bird in Hand winery in the Adelaide Hills says it will lodge a mining lease application “within weeks’’.

Terramin Australia’s chairman Feng Sheng told the company’s annual meeting in Melbourne on Thursday the project’s mining lease application had been completed and would be submitted to the State Government “as soon as a mandatory peer-review report is complete’’.

The Inverbrackie Creek Catchment Group, which includes the Bird in Hand owners and primary producers in the region, has reiterated its call for Energy and Mining Minister Dan van Holst Pellekaan to block the planned five-year mining proposal.

The group’s spokesman Jim Franklin-McEvoy said: “I just can’t see that this can be made safe. I can’t see how this mine can operate in such a way that everyone can sleep soundly at night’’.

Jim Franklin-McEvoy, chairman of the Inverbrackie Creek Catchment Group, says there’s no way a gold mine is appropriate near Bird in Hand. Picture: Tricia Watkinson

The group previously produced an economic impact report it says shows the mine would put $800 million in economic output at risk - a claim disputed by Adelaide-based Terramin.

“It’s totally incompatible with the surrounding land use and the concept of protecting the Adelaide Hills from development, Mr Franklin-McEvoy said.

“There’s certainly going to be a water impact.’’

The project, which has been mined in the past, is surrounded by agricultural interests, including the Bird in Hand winery, Artwine, and the Petaluma Winery.

Mr Franklin-McEvoy said the water resources in the region would be put at risk by the project - a claim also disputed by Terramin.

“If this goes wrong, it’s underground, it’s very hard to correct,’’ Mr Franklin-McEvoy said.

Mr Sheng told the AGM that the project would be “one of the highest-grade gold mines in Australia’’.

“At this stage the Bird-in-Hand deposit is expected to have a five-year mine life,’’ he said.

“We are confident there is more ore at depth and along strike and possibly in the vicinity of the deposit, which could see the operation last well-beyond the proposed five years.’’

The company also raised the possibility of reopening the Angas zinc mine at Strathalbyn, which was closed in 2013, for a year.

Aquifer recharge trials at the Bird in Hand mine site. Picture: Supplied

The Bird in Hand ore would be processed at Angas.

In Terramin chief executive Richard Taylor’s annual meeting presentation, he said the company had “changed its proposed project considerably to address issues raised by stakeholders’’.

He said the project had “a small footprint” and was “hidden from view’’.

Mr Taylor said the company had planted 40,000 trees and placed infrastructure so only water dams and reforested bunds were visible.

The company said a study showed the aquifer in the area was suitable to accept reinjection of water inflows into the underground mine, expected during mining.

The Bird-in-Hand gold mine near Woodside in the 1880s.

A further water study was expected to be finalised next month.

A spokesman for the Minister said: “The State Government has not received Terramin’s application but all mining applications are assessed under the strictest technical and environment criteria.

“Terramin has been participating in a thorough community consultation process for some 18 months, the outcomes of which will be included in the application process.’’

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