Major water supply project for northern SA moves to next step

Mines in northern South Australia rely on groundwater from the Great Artesian Basin and other smaller local aquifers.

A proposed investment to secure the future of water supply for the northern parts of South Australia has moved to the next phase, with the Federal and South Australian governments committing to invest $15 million into its business case.

The project, dubbed as the Northern Water Supply project, was proposed by the South Australian Government last year, with the aim to secure alternative water supply sources for the mining regions in northern South Australia.

Currently, the region relies heavily on expensive groundwater extracted from the Great Artesian Basin and other smaller local aquifers. The availability and security of the water supply constrains the expansion of mining activity in region. There are also potential concerns around the environmental impact of groundwater extraction on underground basins and surface water.

Among possible options, the new business case, funded through $5 million of Federal and $10 million of state government investments, will consider economic viability of a desalination plant located in the Upper Spencer Gulf.

South Australian Premier Steven Marshall said the project had the potential to support up to 8,000 jobs during construction and up to 6,000 ongoing jobs once operating.

“This project is a once-in-a-lifetime opportunity to secure a brighter future for South Australia and create jobs in an environmentally sustainable way,” Premier Marshall said.

To support the business case, the SA Government has entered into a Memorandum of Understanding (MOU) with SA Water, BHP and Oz Minerals, hoping the strong mining industry customer base will help secure the project’s success.

The SA Government’s Copper Strategy plans to triple the state’s copper production to 1 million tonnes per year by 2030. This is driven by forecast global demand for copper increasing from 25 million tonnes per year in 2015, to 40 million tonnes in 2030.

“It is encouraging that our two biggest players in the industry, BHP and OZ Minerals, recognise the need and are part of the MOU,” Federal Member for Grey Rowan Ramsey said.

“Desalination would seem the obvious answer, but there will be a whole lot of community concerns which will need to be addressed along the way. This project will do that.”

Since 2015, the Australian Government has committed more than $75 million from National Water Grid Fund towards projects in South Australia.

Infrastructure Australia has recognised the importance of a new sustainable water source to improve water resilience and increase water supply to the northern parts of South Australia.