Aurelia Metals ‘out of drought danger’ at Peak mine
Aurelia Metals has permission to draw water from an old underground pit, taking it out of drought danger.
NSW copper and gold producer Aurelia Metals says its Peak mine is out of drought danger after NSW govt granted approval to draw water from an old underground pit, making the mine self-sufficient and freeing up supplies for use in nearby communities.
Aurelia told shareholders in November it faced the risk of losing its secured water supply for the Peak base metals mine in the face of the savage drought, as dams run dry and regional centres are forced to prioritise water for households over industry and agriculture.
But that threat has been averted after the NSW government granted a key approval allowing the company to pump water from an old underground mine for use at its Peak operations.
Aurelia said it is still waiting on minor works approvals before it can begin building the 10km pipeline needed to connect Peak to historic Great Cobar mine workings, and access the new water supply, but said in a statement to the market it hoped to receive a final sign-off by the end of the month.
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The company will also need to install water purification equipment to ensure the water is fit for use, but said on Wednesday it was already seeking to source the reverse osmosis systems needed.
The Peak mine needs 780 megalitres of water a year to keep running, but work by Aurelia has already cut the drawdown on external water supplies in half, and the latest approval should make the operation self-sufficient for the foreseeable future.
Its nearby Hera mine is already largely self-sufficient, using borefields and mine dewatering as well a recycling to supply its mining needs, with some potable water needing to be trucked in.
The severe drought has savaged NSW agricultural sector and is now putting major mining operations in the central west of the state at risk.
Aeris Resources is also waiting on approvals from the NSW government to tap the Nyngan to Cobar water pipeline to access water for its Tritton copper operation.
The company was told in November it faced the loss of its primary water supply for the mined when the state government announced it would cease releasing water from a nearby weir to protect the Macquarie River and the water supply of nearby towns. Without access to the pipeline the mine likely to run short of water by February, the company said.
Other regional miners, including Evolution Mining, Glencore, and Newcrest are also working to increase recycling efforts and access new water from bores and other alternative supplies in the face of the drought to keep their operations running — although most have said they are confident they have enough water to keep running until at least the middle of 2020.
Aurelia shares closed down 1c to 41.5c on Wednesday.