Wineries fear impact of Terramin Australia’s proposed gold mine near Woodside in Adelaide Hills
A PROPOSED gold mine near internationally famed Adelaide Hills wineries is “stupid” and risks 150 fulltime jobs, producers fear, as they call on the State Government to step in and veto the project.
TWO of the state’s biggest industries are on a collision course over a proposed gold mine in the Adelaide Hills, which opponents warn is a threat to South Australia’s commitment as a “clean, green’’ food and wine producer.
Terramin Australia plans to build an underground gold mine just a few hundred metres from internationally famous wineries Bird in Hand and Petaluma at Woodside in the Adelaide Hills.
But the Inverbrackie Creek Catchment Group says the idea of the project going ahead adjacent to existing wineries and other agricultural producers is “stupid” and will put at risk 150 fulltime jobs and an annual farmgate turnover of $50 million.
The group initially believed there was little chance that a project in such close proximity to existing producers would be allowed to proceed.
But after a recent community consultation meeting organised by Terramin, they now fear it will and have called on the State Government to step in and veto the project.
Terramin says the project can safely coexist with its neighbours and would be an economic boost to the state.
It hopes to lodge a draft mining lease application early next year, spending $25.6 million developing the mine, which it says will employ 125 people for five years.
While the mine is at Woodside, the ore would be processed at Terramin’s existing processing plant at Strathalbyn, meaning the Woodside project would have a modest above-ground footprint.
ICCG chairman Jim Franklin-McEvoy said his group believed that mining at that particular site was inconsistent with the agricultural activities of its neighbours.
“We’ve got homes and businesses within 400m of the mine site,” he said.
“One of our big concerns is the blasting and tunnel drilling. To drill (the tunnel), they’ll have to blast. They’ll be tunnelling 24 hours a day
“The other issue is we’ve got approximately 150 jobs at risk in the area (including) 40-odd at Bird in Hand, another 40 or 50 at Petaluma.
“And the businesses are dependent on water quality and quantity. Especially things like strawberries where an increase in salinity, you’ve got no crop.’’
“The State Government’s really been pushing this as a food and wine state.’’
The effects of dust on wine grapes, strawberries, other irrigated produce and the pollination of plants was also a concern, and Mr McEvoy said farmers were held to very high standards for their own water use.
The concerned group of businesses includes Bird in Hand, Tolley Viticulture, apple and strawberry growers AF Parker, winery Artwine, and other farming interests.
Mr McEvoy said that at the community consultation meeting, Terramin could give no guarantees about the impact on groundwater.
There were also major concerns over the process for granting a mining lease, which the catchment group says favoured the rights of mining companies over existing land users and the community.
Terramin chief executive Martin Janes said the company had spent “many millions” on detailed hydrological studies of the area.
Mr Janes said they had found the area to be mined was in a relatively “dry” strata of rock, meaning it was likely to have little impact on the aquifer.
The company would also employ tunnel-sealing techniques to stop water ingress should seepage occur.
“When we bought the project ... it was very clear to us that unless we found a solution to be able to mine without affecting the water supply or damaging the water supply to local agricultural producers, we would not have a mining proposition there.
“Our first effort was to put more hydrological bores into and around the ore body and build an understanding of what’s going on with the water down there.’’
Mr Janes said the company’s studies had led it to be “confident’’ it could operate the mine without a material impact on the water supply for other users, and the aquifer would be monitored on an ongoing basis.
“We need to show to the government, as part of the mining lease approval, that we will not affect the supply of other parties,’’ he said.
Mr Janes said that regarding dust, the above-ground operations would be modest, with dust-mitigation techniques used, and the operations would not be visible from neighbouring properties once earthworks and revegetation had taken place.
There was also the benefit to the local economy.
“The economics of the project are very strong,’’ he said.
“We’re estimating about 125 jobs in total. About 65 per cent of those would be in Woodside and 35 per cent in Strathalbyn.’’
Mr Janes said the company employed a landscape architect to ensure the visual impact of the mine would be minor.
Bird in Hand winery, established in 1997 and named for the Bird in Hand Gold Mine, is just 700m from the proposed mining operations. The winery is named after the mine, and two of its wine ranges — Two in the Bush and Nest Egg — are also named after nearby gold mines.
Founder and director Andrew Nugent said the family was not opposed to mining, but they did not think it was appropriate next to their winery.
“It’s a poor community decision fundamentally. It doesn’t seem to benefit anyone,” he said.
“It’s potentially very damaging. The nature of the water here, it’s split-rock aquifers. basically pockets of water. It’s not a basin like the Barossa has or McLaren Vale has.
“Nobody really knows where this water comes from. To be blasting through that rock is really concerning. There’s no mains water here.
“It seems absurd that a mine could be considered in this area when the constraints on dairy, on livestock, viticulture, horticulture are so vigilant. It doesn’t seem to make any sense.
“There's a mining set of rules and an agriculture set of rules, to be honest. We’re not fundamentally against mining but this doesn’t add up from any point of view: financially, for the community, environment, any way you look at it, it’s just a stupid idea.’’
Simon Tolley, of Tolley Viticulture, said he believed the safety of the water supply was a major issue — and not just the security of supply, but contamination issues or potentially changes to its salinity.
Concerns were also raised about the company’s solvency, because Terramin only had a modest amount of money in the bank at the end of the last financial year.
Mr Janes said the company had since raised more funds and with strong project economics, the company was confident it could raise money via project finance or other means to bring the mine into production.
Petaluma’s owner, Lion, said it had confidence in the SA regulatory environment.
“After extensive research and consideration, we are confident that in the situation that mining does take place, due process would be followed and enforced to preserve the environment, the quality of Petaluma’s wines and our ability to operate the winery safely and effectively,’’ a spokesman said.
“We are currently part of the community consultation committee that has been established to provide input on the proposed development, to ensure this eventuates.’’
Mineral Resources Minister Tom Koutsantonis said it was fundamental that “the approval or otherwise of mining proposals must be left to independent regulators, rather than politicians’’.
“This important aspect of our regulatory system ensures decisions are based on objective facts and gives confidence to investors that they can do businesses in South Australia without the goalposts being moved unexpectedly.
“Consultation with stakeholders and the wider community is a requirement under the legislation and proposals must outline how any impact on existing businesses, residents and the environment will be managed.’’
Adelaide Hills Council Mayor Bill Spragg said the broader community seemed ambivalent and there was no strong opposition to the mining project.
“We of course take an interest in the residents’ concerns about the impact of the development and we look to Terramin to provide responses to their concerns,’’ he said.
Gold mining has a long history in the Adelaide Hills, with the Bird in Band mine first operated in November 1881.
Some mines in the region — including Bird in Hand — had a serious issue with water encroachment however, which eventually made them unviable, and other Australian goldfields presented a better return on capital.
Terramin purchased the Bird in Hand project from Maximus Resources in late 2013 and has also purchased the land where the mine entrance will be.
