THE Federal Government has delayed final approval of the divisive VHM Limited Goschen Rare Earth and Mineral Sands Project.
Despite the State Government granting VHM Limited a 20-year mining licence earlier this year, the project still needs Commonwealth approval under the Environmental Protection and Biodiversity Conservation (EPBC) Act.
Federal Minister Chris Bowen now has until July 24 to make a decision whether or not to approve the mine, located around 35kms south of Swan Hill.
A spokesperson for VHM said Commonwealth approval is progressing as expected and is “nothing more than an administrative step in the EPBC process”.
The project plans to pump up to 4.5 billion litres of water, or around 1800 Olympic sized swimming pools, every year from the nearby Kangaroo Lake.
Kangaroo Lake is an internationally recognised Ramsar wetland, and the protected area is home to a number of endangered and critically endangered species.
The rare ecosystem’s international importance, the listed threatened species, and the mining project’s nuclear status means the ultimate green light rests with the Australian Government.
VHM Limited was expected to begin construction in the first quarter of this year, but in May a spokesperson told The Guardian the project would commence “in the next 12-18 months”.
MFMF
Meanwhile, grassroots organisation Mine Free Mallee Farms (MFMF) said they will not be “burying their heads in the sand” at their AGM last week.
Members recently held meetings with their legal team and are continuing to push their case with relevant environmental authorities.
The group’s key concerns, informed by leading experts, are the radioactivity of mined materials, subsequent dust, potential contamination of groundwater and the scope left for genuine land rehabilitation.
Since its inception, MFMF crowdfunded over $320,000 with the vast majority being spend on scientific reports, expert evidence and legal fees.
Among the experts behind their case was pre-eminent hydrogeologist Dr Phil Macumber, rare earths separation specialist Dr Harry Watts, and public health physician and Nobel Prize laureate Associate Professor Tilman Ruff.
All three warned various aspects of the project were potentially fraught.
Robert Sonogan, one of the region’s most experienced agronomists, gave evidence that after mining operations, the soil will never be able to return to full health due to the unique drainage patterns of Mallee roots formed over thousands of years.
MFMF president Craige Kennedy said their reports had to be assembled in a matter of months over the 2023-24 holiday period.
Crucial stages of initial community consultation by VHM Limited were heavily criticised for “dumping” around 6000 pages of reports on residents and rural farmers during harvest.
“That was in November, so we had to get (the experts) to read the VHM reports and provide their own reports by February,” Mr Kennedy said.
“We had the fields of agriculture report, we had rehabilitation, the dust, the noise, we had the radiation and economic report (from VHM).
“And every expert we showed the reports to were happy to come and help, because they saw that there was a load of rubbish, and so they basically provided an independent report.”
Mr Kennedy said evidence provided by their various experts were the only other source of information provided to the government hearing process.
“Councils didn’t provide any expert advice; everyone else was just going to take the mining company’s word for gospel,” he said.
The go ahead
In December last year, however, the State Government accepted VHM’s case and signed off on the Environmental Effects Statement.
Minister for Planning, Sonya Kilkenny, said “it’s crucial that we balance development with the environment and these approvals put in place safeguards to protect the environment, including vulnerable species and habitats”.
VHM Limited chief executive Ron Douglas said it was a major step forward.
“This recommendation is the result of extensive technical, environmental and social studies conducted over several years and follows a rigorous evaluation process,” he said.
The company has consistently said the mining project is safe to the community and progressive rehabilitation will restore the land for farming over three to five years.
VHM have said the project is “designed to avoid, minimise and manage (environmental) impacts as far as reasonably practical”.
“VHM will comply with all applicable environmental obligations and recognises that environmental performance is an important factor in its business performance and is a measure of professionalism,” the company said.
Community distrust
However, local farmers say issues raised over the Iluka mineral sand mine in Kulwin, south of Robinvale, has them highly sceptical of regulation in the mining industry.
The MFMF president said the group had no confidence in state regulators, despite the Victorian Government citing “strict environmental controls” on the project.
“We ultimately don’t want the project to go ahead because of our key concerns… but if it is to proceed, we certainly want those regulations to be tight,” Mr Kennedy said.
“We’ve heard from other mining experiences in the northwest of the state there is no real oversight, and it’s become worse and worse over the years.
“We will certainly be there watching and trying to make them accountable.”
MFMF member and Goschen grain grower Tony Fox’s farm is around one kilometre from the mines.
“We live where they’ll take the boxed mineral sands containers to Ultima; it’ll make it potentially harder to shift harvesting machinery down the road,” Mr Fox said.
“In Australia we’re generally growing some of the cleanest food (and have) the most efficient farmers in the world.
“To have the potential of toxic dust across our paddocks, that’s where it could be a problem.
“That certainly hasn’t been addressed in my mind by the mining company.”
Question of money
MFMF members have also questioned whether “corners might be cut” after the company announced a 30 per cent reduction in capital expenditure for phase one of the project.
The company slashed nearly $150 million from projected expenses following a “robust optimisation review.”
Mr Douglas said “while this is one of the most challenging markets to construct and operate in recent years, the reduction of our capital costs ensures that this project is competitive and at the bottom of the cost curve.”
“Major cost reductions were seen in civil works, road and pipeline construction,” the company said.
The announcement followed more than a year of share market struggles that continue to plague the company.
Since becoming publicly listed in January 2023, the company’s ASX share price has seen a steady decline and has fallen nearly 85 per cent.
VHM Limited’s stock prices were buoyed slightly through this year’s State Government approval but continued to slowly deflate hitting record lows the day before, and after, Commonwealth approval was delayed.
Out of sight, out of mine
The Goschen project covers a relatively small area of land VHM Limited has earmarked for potential future exploration and mining.
The company holds tenements over nearly 3000 square kilometres of land stretching from just southwest of Kerang, north past Nyah, to around 20kms south of Robinvale.
Under legislation, the private company has the power to compulsorily acquire land.
Mr Fox, who is next door to the proposed Goschen site, said despite assurances from the company no land would be taken without consent, he remains concerned.
“The company has said to me that they won’t, but the fact of the matter is it’s possible,” he said.
Mr Kennedy said many in the locally affected area felt overlooked by council and bereft of community groundswell.
“Everyone has their own issues they’re dealing with day-to-day,” he said.
“We’re 35 kilometres out of Swan Hill, but we think the effects will reach Swan Hill.
“It’s certainly affecting the local community; we’ve got neighbours who may have to move out of family farming houses.
“We’ve already had families who have signed agreements with the mining company, and they’re already moving out.
“The community is being displaced, and the community will be changed.”
The Gannawarra Times is waiting on several responses from VHM including on the company’s financial position, the impact of decreased capital expenditure, and compulsory land acquisition.
