The South Australian government has identified a vast swath of land 20 kilometres south of Whyalla as the preferred site for its Northern Water project’s proposed desalination plant.<\/p>\n
The site, Mullaquana Station, was chosen as most suitable through a “multi-criteria” analysis comparing it and another potential location at Cape Hardy, on the eastern Eyre Peninsula.<\/p>\n
The government also announced it had shortlisted two consortia of companies \u2014 WaterConnector and Watermark \u2014 to deliver the project and has requested both to file bids with design, operation and maintenance outlines.<\/p>\n
The government said a final investment decision on those bids would come in the 2026-27 financial year, and has allocated more than $5 billion to get the project up.<\/p>\n
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The Mullaquana site was chosen for its proximity to Whyalla. (ABC News: Brant Cumming)<\/p>\n
The announcement represents a “major milestone” for the Northern Water project, which proposes constructing the plant on the Spencer Gulf and connecting it to a new water pipeline.<\/p>\n
The pipeline would stretch 600km across the state, where it would boost BHP’s water-intensive copper mining operations at Olympic Dam.<\/p>\n
A $200 million pre-feasibility study \u2014 mostly funded by the state government and BHP \u2014 is still assessing the project, and a final decision on whether it will proceed is due next year.<\/p>\n
‘Massive’ for Whyalla \u2014 if it happens<\/p>\n
Premier Peter Malinauskas said the location was “potentially” monumental for Whyalla.<\/p>\n
“[The] Whyalla steelworks could not only be saved, but be given the opportunity to thrive,” Mr Malinauskas said.<\/p>\n
“This new water supply is poised to become the next big opportunity for the Upper Spencer Gulf region.”<\/p>\n
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Phill Stone says economic opportunities may arise from the project. (Supplied: Whyalla City Council)<\/p>\n
Whyalla Mayor Phill Stone welcomed the news but was wary of the government’s promises during the very early stages.<\/p>\n
“This isn’t saying it is going ahead, and it doesn’t say construction is going to start,” he said.<\/p>\n
“It has to come up with the right business case, it must be feasible, sustainable, and that’s still going to be a couple of years away.<\/p>\n
“It certainly would revitalise [Whyalla] again \u2026 and economic opportunities will come out of this.”<\/p>\n
The state government said the project would support more than 4,000 jobs per year during construction and could create billions of dollars of investment in the region.<\/p>\n
But the choice of Mullaquana has come with questions.<\/p>\n
The government’s initial preferred location was Cape Hardy, 200km south of Whyalla, a site endorsed by the Infrastructure SA report.<\/p>\n
Environmental studies and stakeholder engagement found Cape Hardy offered “superior benefits” to three other assessed sites, including Mullaquana.<\/p>\n
“This option [of Cape Hardy] is supported by research and analysis undertaken by [the South Australian Research and Development Institute] SARDI,” the business case said.<\/p>\n
“Cape Hardy offers advantages by lowering construction risks related to marine intake and outfall pipes.”<\/p>\n
But an agreement to purchase the land from a private company lapsed in April<\/a>, although the government has maintained it was still on the table.<\/p>\n BHP says the Northern Water project will support its copper mining operations at Olympic Dam and Carrapateena. (Supplied: BHP Billiton)<\/p>\n Asked why the government had selected a different site to the one identified by Infrastructure SA, which is a government agency, Mr Malinauskas said a range of factors were considered, including complex geotechnical works and environmental factors such as the “length of the pipelines for both inlets and discharge”.<\/p>\n “One of the challenges with Cape Hardy is the [typography] informs the cost of the infrastructure,” he said.<\/p>\n “When all these things are assessed in a lot of detail, the Mullaquana site comes up trumps and hence the decision that’s been made.”<\/p>\n Tom Koutsantonis says the site’s proximity to Olympic Dam was a factor. (ABC News: Che Chorley)<\/p>\n Minister for energy and mining Tom Koutsantonis said the site was chosen for its proximity to Whyalla’s “ready workforce”, airport and infrastructure.<\/p>\n “It’s also, of course, 200km closer to Olympic Dam than Cape Hardy, which saves a tremendous amount of money,” Mr Koutsantonis said.<\/p>\n<\/p>\n
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