Concerns new BHP agreement 'locks in' basin water extraction

A new agreement between the South Australian government and mining giant BHP is facing criticism from environmentalists and First Nations groups, who argue it fails to adequately halt water extraction from the vital Great Artesian Basin. The deal, slated for state parliamentary approval this week, is seen by critics as insufficient in protecting the basin's fragile ecosystem. Concerns are also mounting that these groups have been excluded from meaningful consultation throughout the process. The government recently proposed a bill to "modernize" the Olympic Dam indenture, the foundational contract governing BHP's operations. This update expands BHP's mining lease and lifts restrictions on copper production, clearing the path for a significant expansion of its mining activities. A key point of contention is the agreement's approach to water access. While BHP is mandated to stop drawing water from its Great Artesian Basin Wellfield A by 2036, it retains access to Wellfield B. This continued extraction from Wellfield B is alarming to traditional owners and environmental advocates, who believe it is harming the local mound springs, an area of significant cultural importance to the Arabana people. BHP currently draws substantial amounts of water daily from both wellfields, with Wellfield A being the more impactful on the mound springs' pressure, according to government and company officials. The state government is pursuing the $5 billion Northern Water project, a desalination plant intended to reduce reliance on the basin. If this project proceeds, BHP anticipates a considerable reduction in its use of Wellfield B water, opting instead for desalinated water. However, if the Northern Water project is abandoned, Wellfield B could remain a source for BHP, albeit under stricter environmental regulations and with requirements for improved water efficiency over time. Environmentalist David Noonan expressed deep concern, stating the bill "locks in rights to BHP to extract water from the Great Artesian Basin, that's having impact on the unique and fragile mound springs." He added that Wellfield A should be closed much sooner than the proposed 2036 deadline, criticizing the bill for allowing continued extraction for another decade.

“

It's locking in rights to BHP to extract water from the Great Artesian Basin, that's having impact on the unique and fragile mound springs.