Northern Star Resources takeover target De Grey Mining says it will continue to consult traditional owners on water, after concerns were raised over its plans at its Hemi project.
Northern Star Resources takeover target De Grey Mining says it will continue to consult traditional owners on water, after concerns were raised over its plans at its Hemi project.
Water was a prominent feature of De Grey’s response to submissions to the Environmental Protection Authority’s assessment of its Pilbara project plan published today.
It is a subject of growing concern to sections of the region’s traditional owner groups.
Among the issues flagged were potential risks to the Kariyarra aquifer, and discharge of surface water into the Turner River.
One submission alleged De Grey had “not adequately considered the principle of intergenerational equity” in planning its discharge strategy and the formation of pit lakes.
De Grey’s mining plan proposes groundwater abstraction of 30 gigalitres of water per annum over the Hemi gold project’s first four years, reducing to 18GL between years five and seven and 11GL thereafter; limits subject to updates that would need EPA approval.
De Grey has proposed limits for surface water discharge into the Turner River of 8GL for the project’s first two years, dropping off over the years thereafter.
Up to half of the water abstracted would be reinjected into the area’s Yule borefield under the plan.
In its responses to water concerns, De Grey said it had consistently engaged in good faith with traditional owners and pastoral leaseholders in the area to ensure the project was developed responsibly.
The mine developer noted it had signed a native title mining agreement with the Karriyarra Aboriginal Corporation and with the owners of the pastoral station.
It acknowledged that the KAC still had concerns with its plans for water at Hemi.
“Water management is complex and De Grey’s consultation with stakeholders on this topic is ongoing, including KAC,” it wrote.
“De Grey is to continue to explore options that respect the Kariyarra people’s concerns while also addressing the operational needs of the project.”
The developer noted that its earlier design work had assessed options for 30 per cent and 50 per cent reinjection but that the former would have required significantly more runoff into the Turner River.
Its plans around the river place the developer at odds with recent commentary by Kariyarra Aboriginal Corporation leadership to Business News.
Speaking on its own plans to supply industrial water to Port Hedland alongside ASX-listed Vysarn, KAC chief executive James Gibson recently told Business News that water management was one of the group’s biggest concerns.
“The way industry and government utilises water has a significant impact,” he said.
“The Kariyarra paleochannel is an important resource that needs to be protected and managed in a sustainable way and could provide benefit to Kariyarra people and industry in the Pilbara if it was managed appropriately.
“[We have a] particular focus at the moment, because of industry and government activity, on the Yule and Turner rivers.
“Kariyarra people have stated repeatedly, and will continue to state repeatedly, that they will not support discharge of industrial water into the Yule or Turner rivers, or reinjection of industrial water into the Kariyarra paleochannel.”
De Grey’s submission said it would continue to work with traditional owners in the area to address issues raised with the water plans at Hemi.
“While De Grey understand stakeholders concerns regarding the protection of the Turner River and other water-related issues, we believe that through continued dialogue and collaboration, a mutually beneficial outcome can be achieved,” De Grey wrote.
“De Grey remains open to constructive discussions and are hopeful for a resolution that ensures the long-term success of the proposal and the well-being of other stakeholders, importantly including the Kariyarra People.”
More than 1,500GL of water was approved for abstraction by the state government in the Pilbara in 2022; a matter of concern for traditional owners across the region.
De Grey is currently the subject of a $5 billion all-scrip takeover bid by Northern Star slated for completion next month.
Its Hemi project has an 11.2-million-ounce mineral resource in a record gold price environment.
The project is yet to receive the federal and state environmental approvals it would require before a final investment decision can be made.
On a bonanza day for gold stocks, De Grey shares closed 5.9 per cent higher at $2.50, giving it a $5.65 billion market capitalisation.
