Northern Water Supply Project on Eyre Peninsula poised to unlock SA’s economic prosperity

A little-known project in regional South Australia is poised to unlock an unprecedented period of economic prosperity for the state.

The little-known Northern Water Supply Project on the state’s Eyre Peninsula could unlock an unprecedented period of economic prosperity for South Australia, Premier Peter Malinauskas says.

The multibillion-dollar project, currently in the planning stage ahead of a final decision on whether to proceed, includes a 260ML per day desalination plant and 600km pipeline network to supply water largely for industrial and commercial purposes.

Premier Peter Malinauskas at the Port Lincoln Bush Summit on Tuesday. Picture: Ben Clark

Mr Malinauskas said the project could pave the way for a copper mining boom and help develop a green hydrogen hub in the Upper Spencer Gulf.

He said it was little-known outside of the Eyre Peninsula, but its potential needs to be understood.

“It’s important that regional Australia pay attention to this project. I’d encourage you to pay attention to it,” he told Tuesday’s Bush Summit.

“I think if as a state we’re going to realise this potential, we’re going to have to make some bold decisions to unlock it – provided the numbers do stack up economically.”

The Northern Water Supply Project has the potential to supercharge industry in the Upper Spencer Gulf, including at Whyalla. Picture: Simon Cross

SA is home to vast copper reserves but extracting them will require a lot of water.

Mr Malinauskas said the state was poised to capitalise on the major need for copper as the world continues electrifying.

“Electrification is entirely reliant on one critical mineral above all else – copper,” he said.

“This is a new version of the gold rush. We have that copper, but the only way we get access to that copper is if we have water.

South Australian has world-leading copper deposits, including at Prominent Hill. Picture: Carla Gottgens/Bloomberg via Getty Images

“Northern Water has the potential to transform the Upper Spencer Gulf region.

“I am convinced that in terms of the critical minerals and elements required in the second half of this century, SA does have it’s opportunity for its time in the sun.”

Mining Minister Tom Koutsantonis said the state also had world-leading magnetite resources and Northern Water could facilitate onshore refining to value add to the state’s economy.

Kouts: Bring back the grain trains

By Nathan Davies

Rising global grain prices has made restarting Eyre Peninsula’s rail network a viable proposition, Transport Minister Tom Koutsantonis says.

Speaking at the Bush Summit in Port Lincoln, Mr Koutsantonis said he was open to discussions around reactivating the region’s grain rail network, which was shut down in 2019 by grain handler Viterra due to ongoing maintenance issues.

Grain is a major commodity on the Eyre Peninsula. The Viterra Silos at Kimba. Picture: Kimba Council.

Grain is now moved by road train, with trucks having to drive straight through Port Lincoln to unload at the silos.

This has caused congestion issues in the town, and seen major roads leading to Port Lincoln damaged by the excess heavy traffic.

“Rail is a big problem on Eyre Peninsula, and the quality of roads has suffered,” Mr Koutsantonis said.

Damage on Lincoln Highway from heavy vehicles. Picture: RAA

“I think the rail line should be reinstated. It would get grain trucks off the main street and improve the quality of the highways. I think the question is who pays?

“But given the current state of grain prices across the world I think the reinstatement of rail on EP is a very viable option.”

It’s an idea Port Lincoln Mayor Diana Mislov said would be enthusiastically welcomed by most people living in Port Lincoln and surrounding areas.

A recent RAA survey of Eyre Peninsula roads found the ones requiring urgent maintenance to be the Lincoln Highway (63 per cent of respondents), Flinders Highway (40 per cent) and Eyre Highway (32 per cent).

A whopping 87 per cent of respondents noted increased truck traffic since the closure of the region’s grain rail lines in 2019, contributing to faster deterioration of roads.

Originally published as Northern Water Supply Project on Eyre Peninsula poised to unlock SA’s economic prosperity