A $5 billion desalination plant project is proposed for the Upper Eyre Peninsula, and the site selection has sparked both excitement and controversy.
The South Australian government has chosen Mallaquana Station, located 20 kilometers south of Whyalla, as the preferred location for its ambitious Northern Water project. This decision follows a thorough analysis comparing Mallaquana with another potential site, Cape Hardy, on the eastern Eyre Peninsula.
The government has also narrowed down the project delivery to two consortia, WaterConnector and Watermark, requesting detailed bids outlining design, operation, and maintenance plans. A final investment decision is expected in the 2026-27 financial year, with over $5 billion allocated for the project's development.
Premier Peter Malinauskas emphasized the potential significance of this project for Whyalla, stating that it could not only save the steelworks but also provide an opportunity for growth. He believes this new water supply will be a game-changer for the Upper Spencer Gulf region.
Whyalla Mayor Phill Stone welcomed the news but urged caution, reminding everyone that this announcement doesn't guarantee the project's commencement. He highlighted the need for a robust business case, feasibility studies, and sustainability assessments, which are still years away.
The state government projects that the construction phase alone will support over 4,000 jobs annually and could attract billions of dollars in investment to the region.
However, the choice of Mallaquana has raised questions. Initially, Cape Hardy, located 200 kilometers south of Whyalla, was the government's preferred site, endorsed by the Infrastructure SA report. Environmental studies and stakeholder engagement found Cape Hardy to offer superior benefits compared to other sites, including Mallaquana.
When asked about the discrepancy between the government's decision and the Infrastructure SA report, Premier Malinauskas explained that various factors were considered, including geotechnical works and environmental concerns such as the length of pipelines for both inlets and discharge. He highlighted the challenges posed by Cape Hardy's typography, which would impact infrastructure costs.
Minister for Energy and Mining Tom Koutsantonis emphasized the benefits of the Mallaquana site, citing its proximity to Whyalla's workforce, airport, and existing infrastructure. He also pointed out that Mallaquana is 200 kilometers closer to Olympic Dam, resulting in significant cost savings.
These cost-saving measures come in light of recent news suggesting that taxpayers may bear the burden of construction costs for an extended period, potentially longer than initially anticipated. The project's completion timeline has been pushed back by at least three years, with the desalination plant and water pipeline now expected to be operational by 2032.
The government plans to initially cover the project's costs and later recover them fully through long-term agreements with BHP and other potential customers.
Environmental concerns have also been raised, particularly regarding the proximity of the proposed site to the rare giant cuttlefish breeding grounds in the Upper Spencer Gulf. Point Lowly, northeast of Whyalla, was previously considered for a desalination plant but was abandoned due to potential negative impacts on cuttlefish breeding.
In 2009, a bipartisan Environment Resources and Development Committee concluded that brine from such a plant could cause serious damage to the marine ecosystem. Evidence suggested that the brine would not disperse properly due to the marine conditions in the Spencer Gulf.
Minister Koutsantonis addressed these concerns, emphasizing the 40-kilometer distance between Point Lowly and Mallaquana. He believes the plant is far enough away from sensitive areas, acknowledging that desalination plants often face opposition regardless of their location.
Mayor Stone expects extensive environmental investigations and research in the coming years to assess the potential impacts of the plant. He emphasized the need for factual information, stating that people should not jump to conclusions about the gulf's ruin or the failure of fisheries.
"There will be a lot of environmental reports and studies, and we welcome all that information to make an informed decision," he added.
The proposed desalination plant project is a significant development for South Australia, offering potential economic benefits and water security. However, it also raises important questions about environmental impacts and the role of government agencies in decision-making. As the project progresses, it will be interesting to see how these concerns are addressed and whether the proposed site at Mallaquana will ultimately be chosen.
