The planned port facilities at South Australia’s Port Bonython are a step closer to realization after an agreement between the South Australian State Government and ports consortium Spencer Gulf Ports Links (SGPL) was struck.

 

South Australian Transport Minister Patrick Conlon announced the agreement, saying SGPL had been granted exclusive rights to undertake an Environmental Impact Statmenet (EIS) for the proposed deep sea facility, which the Government hopes will ‘greatly improve’ the state’s export capacity and mining capacity.

 

“The proposed Port Bonython project will deliver an efficient, first-class export facility servicing the iron ore mining industry and its projected boom in the State’s north by significantly boosting existing capabilities,” Minister Conlon said.

 

Minister Conlon said if the development is approved, the facility would be capable of servicing 180,000 tonne bulk iron ore carriers and offer significant sea and rail export options to complement the mining boom.

 

“The proposed deep-sea port, which will be privately funded, is estimated to cost between $600 and $700m and includes a three-kilometre jetty and conveyor system and a 27-kilometre rail line connecting the port to the existing rail network.” Mr Conlon said.

 

The construction of the port is expected to employ over 400 people and, by completion, will be expected to be able to meet the demand of over 50 million tones of product each year.

 

“Not only will the project deliver a modern, environmentally sound, purpose-built port with the ability to meet demand of more than 50m tonnes of product each year, but it is anticipated its construction would employ approximately 400 people, giving a major employment opportunity to our regional areas.”

 

The State Government and the SGPL consortium, comprising Flinders Port Holdings, Leighton Contractors, Macquarie Capital, BIS Industrial Logistics and the Australian Rail track Corporation, reached agreement this month on conditions to move ahead with the project.

 

Flinders Ports Chief Executive Vincent Tremaine said Port Bonython provided an excellent location for the facility given its existing harbour, land availability and proximity to mining projects in the region.

“We strongly believe the port is viable, and indeed essential, given the expected increases in mineral resource volumes from proposed mining projects in the area,” he said

 

The announcement of the planned construction of the port comes after a ‘time-share’ access deal to the Woomera Protected Zone in the state’s north between miners and the Australian Defence Force was struck, giving mining companies partial access to the Australia’s largest deposits of copper and uranium.