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S Australia denies mining licence to Terramin

9th February 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The South Australian government has refused ASX-listed Terramin Australia’s application for a mining lease and a miscellaneous purposes licence in respect of the Bird in Hand gold project.

Terramin on Thursday told shareholders that the company was surprised and disappointed by the decision, adding that the applications had been supported by comprehensive studies based on science, which demonstrated that there would be no adverse environmental outcomes arising from Terramin’s mining proposal.

The company said that it was not made aware of any issues with the methodology or conclusions of these studies, despite the studies being peer reviewed. Furthermore, the company had answered all questions posed by the Department of Energy and Mining (DEM), and had provided all the information and documentation required.

“Terramin understood that it had provided comprehensive responses to the satisfaction of DEM and addressed all regulatory requirements. To have been through this exhaustive process and then be denied the mining lease with no clear explanation of the grounds for this decision is most unexpected,” the company said in a statement.

“This decision will mean that the communities of Woodside and Strathalbyn will miss out on the creation of over 140 highly paid mining jobs and many more indirect jobs. The people of South Australia will miss out on the mine’s significant economic contribution to the state economy.”

A previous feasibility study into the Bird in Hand project estimated that over a mine life of four years, the project could produce an average of 11 100 t/y of concentrate containing 44 700 oz of gold and 20 600 oz of silver.

The 2021 feasibility study has estimated that the Bird in Hand project would generate total revenues of A$428-million, would have a pretax net present value of A$147-million and an internal rate of return of 82%, and a C1 unit cost of A$272/t after silver by-product credits.

The Association of Mining and Exploration Companies (Amec) on Thursday said it was extremely disappointed with the South Australian government’s rejection of the Bird in Hand gold project.

“The announcement that the state’s most advanced mining project has not been approved to progress into development, is a major blow for the entire industry,” said Amec CEO Warren Pearce.

“It is a devastating result for the team at Terramin that have worked incredibly hard to deliver this project, through an exhaustive five-year approvals process.”

“This decision is a massive setback for the hopes of growing the mining industry in South Australia and reinforces a widely held view that South Australia isn’t serious about developing new projects.”

“It also has major implications for the hopes of South Australia to attract new major project investment. Industry and investors will now rightly question whether it is worthwhile investing in South Australia, and whether the South Australian government actually want mining investment.”

“It will now be much harder for South Australia to attract new mining and mineral exploration investment,” Pearce warned.

“The South Australian government purports to be seeking major investment in mining, hydrogen and renewable projects, but doesn’t seem to realise that these multibillion-dollar investments will only be made in jurisdictions that are supportive of new developments.”

“Companies, investors, investment funds and banks, don’t just look at the project in which they want to invest, they look at the place they are investing in. Actions speak louder than words. And if viable projects are rejected, regardless of their scale, the scientific evidence ignored, or decisions made purely for political reasons, then this speaks to potential investors much louder than anything the South Australian government can say.”

Terramin told shareholders that the company would now await the release of the Assessment Report prepared by DEM for the Minister before considering its options.

Edited by Creamer Media Reporter

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