Port Lincoln approved as Centrex export link

Centrex Metals gained government approval to export 1.6m tonnes from the proposed Wilgerup iron ore mine on the Eyre Peninsula despite opposition from the town's council and aquaculture and fishing industries.

“This approval is an important step in the development of South Australia’s mining industry and the state’s re-emergence as a major supplier of iron ore to the world,” urban development and planning minister Paul Holloway said.

“The approval is based on a recommendation from the independent Development Assessment Commission [DAC] and is subject to stringent licensing requirements approved by the Environmental Protection Authority.

“This project has been reviewed thoroughly by DAC, including a high level of consultation with the community, industry and state and local government agencies and I have accepted their independent expert advice. 

“The 12 conditions imposed on the development include a limited life of 10 years for the project, that only material from one lease be brought on site and that unloading of rail cars won’t occur before 6 am or after 10 pm.

“While this approval marks the further significant step in the emergence of a new mining industry on the Eyre Peninsula, the region’s long-term future will depend on the development of a new port.”

The Centrex Metals development will comprise changes to existing buildings, a new shiploader and conveyor system and construction of a vehicle wash down and daily checks facility.

Centrex sealed an off-take deal with China’s 10th largest steel group, Baotou Iron and Steel, in August for 3m tonnes of Wilgerup iron ore over the next five years.

The company has plans for a new capesize port to be built at Sheep Hill, north of Port Lincoln, while the state government is examining a controversial new export facility further north, at Port Bonython.

“The DAC recommendation found the application is consistent with Port Lincoln’s current planning policies given the Centrex development is located within an existing port and will be subject to strict compliance with the EPA’s licensing requirements,” Mr Holloway said.

The conditional green light is only for the Wilgerup mine exports, which are expected to begin in the fourth quarter of next year.

"The minister’s decision is a key milestone for the Company," Centrex managing director Gerard Anderson said.

"Science is also a winner.

"It was the application of science that proved that the issues raised by certain opponents of our development application were baseless.

"As frustrating as the delays have been, we can now get on with the job of creating opportunities for Eyre Peninsula."