Mon. Jul 1st, 2024
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The historic mining city of Kalgoorlie-Boulder sits in a resource-rich part of Western Australia’s Goldfields, where water is seemingly as valuable as gold.

While drinking water has been piped through the 566-kilometre-long Golden Pipeline for more than a century, a lack of water for commercial use is stifling development amid the state’s latest mining boom. 

Mining companies operating in WA’s Goldfields rely on water pumped from underground bores, which typically contain more than 200 grams of salt per litre – about six times saltier than seawater. 

Curtin University researcher Laurence Dyer said the salinity of the water made desalination a cripplingly expensive option locally, meaning new water sources are required.

Professor Dyer described current shortages as a “key limitation on growth” at a time when demand for critical minerals is diversifying Kalgoorlie-Boulder’s economy beyond its traditional reliance on gold mining.

A map of a proposed mining operation in WA's Goldfields.
Proponents of the Kalgoorlie Nickel Project say it has an estimated 40-year mine life.   (Supplied: Ardea Resources)

He pointed to the proposed development of the $3 billion Kalgoorlie Nickel Project, 70km north-west of Kalgoorlie-Boulder, as a prime example.

With a 40-year mine life, it was awarded major project status by the federal government in March 2022 and will require huge quantities of water for a planned processing plant.

“If you have a new project coming online, water, energy, that is the biggest consideration as to whether it’s going ahead, alongside obviously, whether it can make money,” Professor Dyer said.

“When we’re talking about critical metals, those processes require clean water, not just the hypersaline groundwater that’s sitting under the town.”

A professor wearing a white coat in a lab environment.

Laurence Dyer says finding new water sources could bring additional mining projects into production.(Supplied: Gold Industry Group)

Professor Dyer has been researching new treatment techniques for “dirty water sources”, including tailings and mineral waste.  

“You don’t necessarily need drinking water … we’re calling it industrial fit for purpose, making it good enough to go wherever it needs to go.

“The size of the prize is massive, because it could mean the next billion-dollar project either does or doesn’t go ahead.”

Waste not, want not

Water has also been embraced as a revenue stream by the City of Kalgoorlie-Boulder, which has used treated effluent to irrigate parks and gardens for decades. 

During the 2021-22 financial year, the City of Kalgoorlie-Boulder received 2,306 megalitres of wastewater at its South Boulder treatment plant, and 1,380 megalitres of purified effluent was recycled.

Those are big numbers, but the plant has its limitations.

“You can only treat as much grey water as the town produces, so if the town doesn’t grow, then your supply into treatment is limited,” Professor Dyer said.

a sign that reads wast water treatment plant

The South Boulder wastewater treatment plant has undergone significant upgrades in recent years.(ABC Goldfields: Robert Koenig-Luck)

Figures for the 2022-23 financial year reveal the City of Kalgoorlie-Boulder sold $3.02 million worth of recycled water to industrial users.

The result was $349,992 less than what the council had budgeted, amid five months of city-wide water restrictions.

If those current rates are maintained, the City could achieve revenues of $60 million over the next 20 years.

A dam with a small puddle of water in the middle

The City of Kalgoorlie-Boulder introduced water restrictions earlier this year after dams ran dry.(ABC Goldfields-Esperance: Robert Koenig-Luck)

Biggest customer by far

Most of the water from the council’s wastewater treatment plant was sold to rare earths miner Lynas for use at its new $730 million refinery in West Kalgoorlie.

Lynas managing director Amanda Lacaze said water was a key consideration in building the refinery, which is currently in the commissioning phase after blowing out from its original budget of $500 million.

“It is one of the reasons why we chose Kalgoorlie as the site, the availability of grey water,” Ms Lacaze told reporters in August.

“In a country like Australia, where water is at a premium, using grey water is excellent and we re-use it about six times through the process before it ends up in one of our tailings facilities.”

A photograph from a plane above a refinery.

An aerial view of the West Kalgoorlie refinery being built by Lynas.  (ABC Goldfields: Ivo Da Silva)

Long-term deal with council

The council previously supplied water to Kalgoorlie’s Super Pit gold mine, but a pipeline was ripped up several years ago.

Lynas is now its biggest customer.

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