Updates on Mindarie Mineral Sands Project

22 January 2024 - Compliance Direction - Variation Issued

On 17 January 2024, DEM officers undertook a site inspection of the Murray Zircon, Mindarie Mineral Sands Mine, and attended the monthly meeting between the landowner and Murray Zircon. The inspection confirmed the works that have been completed, or substantially progressed. At the meeting, Murray Zircon representatives indicated they would be seeking to re-commence the processing of ore.

Further correspondence with Murray Zircon occurred over the following days, including confirmation that the affected landowner had been consulted about the proposed works.

On 22 January 2024, a variation was made to the Compliance Direction issued on 21 December 2023. The varied Compliance Direction permits the proposed works to occur and provided time extensions on some previous deliverables unavoidably delayed due to the Christmas period.

Murray Zircon has been reminded that a return to full mining operations is dependent on the assessment of its Change in Operations Application submitted to DEM on 12 January 2024, submission of the revised PEPR for assessment by DEM, and payment of the revised bond.

21 December 2023 - Compliance Direction - Variation Issued

On 20 December, DEM officers undertook a site inspection of the Murray Zircon, Mindarie Mineral Sands Mine. This inspection confirmed that Murray Zircon are progressing works that meet the requirements of the Compliance Direction issued on 1 December 2023.

Murray Zircon has sought permission to undertake limited works within the existing disturbed area to prepare for operations to recommence and rehabilitation to proceed. This work, defined as “Directed Works “B” has been permitted and captured in the updated Compliance Direction. The works program is expected to take 11 days and will not increase the existing permitted disturbance footprint on site.

An updated Compliance Direction issued 21 December 2023 (replacing the 1 December 2023 Compliance Direction) has been issued carrying over all existing requirements. While Murray Zircon had met the compliance dates in the previous Direction, the company required some additional information or services from external providers to fulfill its obligations. Accordingly the dates have been varied to account for delays from contractors (over the Christmas period) required to provide that information or service.

Murray Zircon is not permitted to recommence mining operations, other than the Directed Works, until an updated PEPR is submitted and approved for the mining operation.

13 December 2023 - Compliance Update

Since the Compliance Direction was issued on 1 December 2023, Murray Zircon has continued to progress rehabilitation, maintenance, and transportation of product from the site, as permitted under the Direction.

DEM Compliance Officers inspected the Murray Zircon Mindarie Mineral Sands mine on 13 December 2023 to monitor current issues on site and determine the progress of works required under the Compliance Direction. This included a comprehensive inspection of all aspects of the site, drone surveys, photographs, and related measurements.

DEM Compliance Officers also attended the regular Murray Zircon / Landowner Meeting, and the broader Murray Mallee Community Consultative Committee meeting.

The inspection and meetings confirm that Murray Zircon’s works are progressing the requirements of the Compliance Direction.

13 December 2023 - Murray Mallee Community Consultative Committee (MMCCC), New Independent Chair

The MMCCC provides an open forum to discuss the operation of the Mindarie Mineral Sands mine to the broader local community. Attendees include company representatives, local members of parliament, local government representatives, landowners, DEM staff and other affected or interested stakeholders.

The first meeting of the MMCCC with its new Independent Chair, Ms Wendy Campana, was held on 13 December 2023. The minutes of the meeting will be publicly available in due course.

4 December 2023 - Compliance Direction (ongoing)

On 1 December 2023, the Department for Energy and Mining (DEM) issued a Compliance Direction to Murray Zircon directing them to undertake several actions, including cease all planned disturbance on Mineral Leases (MLs) 6137 and 6225 (other than where otherwise directed to undertake works).

Murray Zircon may continue to undertake processing of their current ore stockpile and rehabilitation only.

The Direction requires Murray Zircon to:

  • review their rehabilitation liability estimate to capture the additional disturbance,
  • provide a plan to DEM as to how Murray Zircon will achieve compliance,
  • submit a Change in Operations Application for their current Program for Environment Protection and Rehabilitation (PEPR),
  • engage an independent expert to review all stockpiles of topsoil and subsoil, and all bare and drifting soils across the MLs, and
  • ensure hydromulch is applied as soon as possible.

Murray Zircon will also be required to undertake works on the disturbed area (the subject of the Compliance Direction issued on 1 September 2023).

DEM will be closely monitoring the site over the coming weeks to ensure Murray Zircon comply with the Direction.

24 November 2023 - Non-Compliance – Overburden Removal

DEM is aware that the disturbance for topsoil and overburden material is greater than the allowable area set in the PEPR (187ha and 17ha respectively).

Since the Compliance Direction was issued on 1 September 2023, DEM has noted the topsoil and overburden removal area has continued to increase beyond compliance limits.

Murray Zircon has since reported that mining operations have changed since the Stage 1 PEPR was approved in March 2023, and it is unlikely that these topsoil and overburden rates will return to within existing compliance limits during mining operations.

DEM therefore requires Murray Zircon to submit a Change in Operations Application to address this matter, and in the meantime to immediately cease any further mining development (excluding processing current ore stockpile and rehabilitation).

In consideration of the additional disturbed land (greater than the allowable area set in the PEPR), DEM has initiated a review of the existing rehabilitation bond ($6.75million) held by the Minister. DEM have issued a letter to Murray Zircon outlining the above issues which can be read here.

1 September 20232 - Compliance Direction (completed)

On 1 September 2023, DEM issued a Compliance Direction to Murray Zircon regarding unauthorised disturbance west of Jacka Road and directing them to:

  • rehabilitate the unauthorised disturbed area (approximately 5Ha),
  • update its compliance reporting frequency, and
  • provide a plan as to how site will be brought into compliance in accordance with the approved PEPR.

This Compliance Direction has now been deemed complied with and discharged.

While Murray Zircon attempted to meet the requirements of the Direction, the rectification works (through application of a polymer to stabilise the disturbed land), have not been 100% effective. This requires additional works which has been addressed through an updated Compliance Direction issued on 1 December 2023.

Stage 2 PEPR and Lone Pine EPEPR Assessment

As a result of the Compliance Direction issued on 1 December 2023, no further assessments will be undertaken of the submitted documents until the matters in the Direction have been completed.

About the Mindarie Mineral Sands Project

Resource and location

Heavy mineral concentrate (HMC), located approximately 150 km east of Adelaide in the Murray Mallee region of South Australia.

Located in the lower southwestern corner of the Murray Basin the heavily mineralised Loxton-Parilla sands are often exposed at surface or thinly covered by low dunes interpreted to be of Woorinen Formation or isolated Lowan Sand dunes.

Company and tenement information

Mining operation and status

  • Currently in production at the Mercunda strandline
  • Open pit mining techniques
  • Extracted sand is mixed with water to form slurry in the slurry unit located in the mine pit or adjacent to the mine pit
  • Slurry is pumped to the Primary Concentrator Plant (PCP) where it is processed via gravity separation to form Heavy Mineral Concentrate (HMC)
  • HMC is transported by truck to Port Adelaide for export.

Approval process

  • Previous mining at the Mindarie A2 and C strandlines at Mindarie occurred between 2007 to 2009, and 2012 to 2015. Due to low commodity prices the project was placed in care and maintenance in April 2015.
  • In 2017 the Department approved a program for environment protection and rehabilitation (PEPR) for the care and maintenance and progressive rehabilitation of the Mindarie A2 and C strandlines, which was completed in 2021. ML 6220 (A2 Strandline) was partially surrendered in 2022.
  • On 16 November 2022 PEPR2022/165 was approved for Early Works Construction, Mercunda Strandline, to allow the construction of plant and equipment on ML 6137.
  • On 21 March 2023 MPEPR2022/167 was approved for the Mercunda Strandline – Stage 1 for the recovery of heavy minerals on MLs 6137, 6225, 6220 and associated MPLs 77 and 79.

Documents and reports

Program for environment protection and rehabilitation (PEPR)

Mindarie Mineral Sands Project (Stage 1) approved PEPR (PDF 178 MB) and approval letter dated 21 March 2023 (PDF 320KB)

Mining compliance reports