Tanya Plibersek facing pre-election EPBC test over US mining giant tailings dam application

Tanya Plibersek is facing a pre-election test to approve a new tailings dam near Orange, after Australia’s largest underground mine operator applied to extend the Cadia gold and copper mine.

Mine worker Melissa McNamara at Newmont’s Cadia operation, near Orange, in central NSW. Picture: Newmont Cadia Website

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Environment Minister Tanya Plibersek is facing a pre-election test to approve a new tailings dam near Orange, after the owner of Australia’s largest underground mine and gold producer lodged an application to extend and expand its Cadia operations.

The Australian understands US mining giant Newmont, which operates Cadia and employs 2100 workers in the Orange region near the McPhillamys site, would need to complete construction of a new tailings dam before 2031 or face the risk of shutting down mining operations.

The Cadia Continued Operations Project (CCOP) application under the Environment Protection and Biodiversity Conservation Act requests to extend operations to 2050 and build the new tailings storage facility dam.

The EPBC application is being viewed by the mining industry as a major test for Ms Plibersek, who has come under fire for blocking the proposed McPhillamys tailings dam near Orange and faced accusations she is facilitating lawfare by green activists against miners and threatening Tasmania’s salmon fisheries.

Cadia, 30km from Orange, is one of the world’s largest gold and copper mining operations and Australia’s biggest underground mine by material movement. The mine, which operates Australia’s only molybdenum plant, produces about half of annual NSW copper exports and almost 600,000 ounces of gold.

The Australian understands mining industry representatives including from Newmont recently met with Ms Plibersek to reinforce the need for timely ­approvals under legislation.

Ms Plibersek has been reassuring mining chiefs concerned about EPBC delays that she has doubled the rate of on-time ­mining approvals since the 2022 election.

Newmont president and chief executive Tom Palmer told The Australian: “There is room within Australia’s regulatory system for pragmatism and rigour to co-exist in support of environmental protection, local jobs and local communities.”

Labor MPs Dan Repacholi and Jerome Laxale, members of the Parliamentary Friends of Resources group, toured Cadia’s mining operations earlier this year. Following the visit, Mr Repacholi, the Hunter MP, said Cadia’s commodities “are being used to produce our technology and help us get towards net-zero emissions”.

Workers at the underground mine. Picture: Newmont Cadia Website

The Cadia application, which removed plans for a south water storage dam and reduced the disturbance area by 350ha, seeks to continue mine operations beyond 2031 to 2050 and build new infrastructure in support of a decades-long pipeline of jobs and copper supply. The NSW government major projects planning portal ­declares the continuation of Cadia is a “state significant ­development”.

A primary element of the ­proposal, which involves a modest increase in mine footprint, is the location of the tailings storage ­facility, which has been under ­investigation since 2005.

After extensive studies and ­independent assessments including by experts from the NSW ­Department of Planning and ­Environment, it is understood Newmont has determined there are no credible alternative locations for the tailings dam.

Following stakeholder feedback, alternative configurations of the southern tailings storage ­facility extension were considered and material changes made, ­including changes in the size, ­location and design of the dam. The size of the disturbance area for the tailings dam is 75 per cent less than the original proposal.

In contrast to McPhillamys, Cadia is already established as one of the biggest employers in the ­Orange, Blayney and Cabonne local government areas, spending more than $205m on employee salaries in 2022-23. Almost 95 per cent of Cadia’s 1386 full-time ­employees live in the Central West region.

Mr Palmer, who this month ­became global chair of the powerful International Council on Mining and Metals comprising the world’s 24 biggest mining companies, said extending Cadia operations would deliver a “tangible boost for responsible mining that contributes to global net-zero goals, local jobs and economic growth”.

“Extension of Cadia’s operations will secure more than 2100 full-time jobs, as well as the future of our local suppliers – more than half of whom have their head ­office based in NSW, with one-fifth having their head office based in the ­Centra West,” Mr Palmer said.

Newmont – the world’s leading gold producer – also mines copper, zinc, lead, silver and molybdenum.

Cadia has linked its copper ­exports to the Albanese government’s net-zero commitments, including by servicing growing global demand for copper in support of renewable energy, electric vehicles and decarbonisation. About half of the electricity used at Cadia is sourced from the Rye Park Wind Farm and 70 per cent of water used on site is recycled. Cadia is considered a world leader in underground innovation, ­including automation and 5G wireless networks.

The CCOP application proposes to extend current operations using existing infrastructure and supporting services in combination with the continuation of underground mining within the areas of the Cadia East underground and Ridgeway underground mines.

The continuation of Cadia beyond 2031 is expected to process up to 35 million tons of ore a year.

Newmont, which is understood to be hopeful the Albanese government will progress its Cadia application before next year’s election, will subsequently need to lodge an environmental impact statement and development application with the NSW government.

The EIS involves detailed technical studies and further engagement with local communities. The removal of the south water storage dam from the application protects areas of White Box, Yellow Box, Blakely’s Red Gum grassy woodland and native grassland, and inundation of a 2.5km stretch along the Cadiangullong Creek.