Yalgoo residents wary of new FI Joint Venture iron ore mine's groundwater impacts

Australia Broadcast Center

2 days ago

Residents of a small inland community in Western Australia fear plans by a Chinese-backed company to build a large iron ore mine will cause irreversible damage to their underground water supply and damage a historic tourist hotspot.
FI Joint Venture (FIJV) received environmental approval last year to build a 310-million-tonne open pit iron ore mine less than 20 kilometres from Yalgoo, a small Mid West WA community with historic roots in mining and pastoral operations.
FIJV is owned by Hong Kong-based joint venture company Mineral Investment Technology Group (MITG), with shareholders in the Sultanate of Oman.
Yalgoo residents are worried about the impact of the planned mine on their groundwater, and the potential destruction of the historic Jokers Tunnel tourist attraction, a tunnel carved through solid rock by pioneering gold miners in the 1800s.
The Yogi mine has received a groundwater licence to extract 4.5 gigalitres each year from the region.
A gigalitre is 1 billion litres of water.
The Environmental Protection Authority has instructed that there must be "no impact to quantity or quality of the Yalgoo Water Reserve" and "no adverse impacts to nearby groundwater users identified at risk within the drawdown area, including pastoral stations for stock use".
Shire of Yalgoo chief executive Ian Holland said he was worried.
"The paleochannels are not terribly well known. We won't see the effects of the drawdown and de-watering of the mine until it has physically happened," Mr Holland said.
"There's unfortunately no way of knowing until the water starts getting pumped out.
"It will definitely affect stock water. Chances are more bores will be needed in different areas."
After identifying that several bores used to water livestock could be impacted by FIJV plans, the company said it would find an alternative water supply for any impacted pastoralists.
The shire has lodged an objection in WA's mining Wardens Court against FIJV's plans for mining in the Yalgoo area, which Mr Holland said could result in mining of a hill containing the tourist attraction Jokers Tunnel, placing it at risk of destruction.
Mr Holland said the shire had unsuccessfully attempted to negotiate compensation from the company if the tunnel were destroyed.
"We would like to see it protected into the future; it is a fantastic cultural and local tourist spot that has existed for the past 100 years," he said.
Mr Holland said he hoped the prospect of the mine's 1,000 workers "just up the road" in a camp would benefit the small town of 300 people, which had a pub, a shop and a nursing post.
He said the shire was hoping for co-location of essential services, such as healthcare.
He also hoped some people working at the mine would choose to live in Yalgoo, rather than a fly-in, fly-out, or drive-in, drive-out to the mining camp.
But he said the miner would build its own airstrip rather than using the existing facility in Yalgoo.
Trucks carrying iron ore from inland mines to the closest port in Geraldton pass through Yalgoo every few minutes.
Along with its Yogi magnetite iron ore mine, FIJV wants to construct a 250-kilometre slurry pipeline from the mine to the Geraldton port as a way to transport the mineral.
It also plans a return water pipeline and a gas supply pipeline from Dampier in the north to the Bunbury Natural Gas Pipeline in the south.
Mr Holland welcomed a proposal that would not put more trucks on the road.
But he said the prospect of an above-ground pipeline through the shire presented concerns for livestock and native animal movement, and bushfire control.
"It would be nice to see co-investment for things like rail," he said.
In a statement, FIJV director Leon Taylor said the company was confident and excited about its mining development in the Yalgoo area, saying it would benefit the community and the region.
Mr Taylor said the shire's concerns about groundwater impact were misplaced.
"The water licence was granted subject to anticipated and strict conditions, including monitoring, and the company will comply with all conditions," a statement read.
Mr Taylor said the mining warden had asked the shire to produce statements in support of its objections by July 4, 2025.
He said the company would consider any written statements that it received from the shire, but could not comment further while the process was still in the Wardens Court.
Earlier this year, FIJV announced an agreement with Green Iron and Steel Australia to develop a magnetite processing hub, producing shippable hot briquetted iron as part of a supply chain for low-emission steel production.