Forget FIFO – new mine near Perth would offer 500 DIDO jobs

Mineral explorer Chalice Mining has taken the first step to gain approval to spend as much as $2.3 billion to mine metals needed for the energy transition just 85 kilometres from central Perth.

If the project goes ahead,500 workers would drive in and out of work from Perth each day – a rarity in WA’s fly-in,fly-out dominated mining sector.

Chalice Mining major backer Tim Goyder (left) and chief executive Alex Dorsch.

Chalice Mining major backer Tim Goyder (left) and chief executive Alex Dorsch.Trevor Collens

The Perth-based company referred its Gonneville project to the Environmental Protection Authority on Monday,wanting to clear 16 square kilometres of farmland and native vegetation on land it owns on the southern edge of Julimar State Forest.

The construction workforce would peak at around 1200,with some workers living on site. Construction is expected to begin in 2027,according to the EPA filing.

The mines would produce an array of metals – including copper for wiring and the platinum group of elements,nickel and cobalt for batteries – about an hour’s drive from Perth.

Chalice is promoting its mine as a strategic asset for Australia as Russia dominates the production of palladium,one of the platinum group elements. A final investment decision is planned for early 2026,and the $447 million company is seeking a partner to share the costs.

Chalice released a Gonneville scoping study in August 2023 that estimated a cost of $1.6 billion to mine 15 million tonnes of ore a year,and $2.3 billion for double that capacity. Its share price then fell almost 25 per cent after investors baulked at higher than expected costs and the assumption that commodity prices would rise well about current levels.

The development is a massive undertaking,requiring a 54 kilometre-long pipeline to transport water from the yet-to-be-built Alkimos desalination plant and a 26-kilometre connection to the south-west power grid.

Chalice is still deciding whether to build an open pit or an underground mine.

The Gonneville mine covers the southern two kilometres of what is thought to be a 30 kilometre-long area containing a similar mix of minerals.

Controversially,much of the remainder – some already drilled for exploration by Chalice – runs through the Julimar State Forest. Unlike mining,drilling is not assessed by the EPA andcan be approved by the minister for mines.

Environmental campaigners are pushing for the 286-square-kilometre forest – home to the endangered chuditch,woylie and Carnaby’s black cockatoo – to be made a national park that could not be mined.

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correction

Area of land cleared changed to 16 square kilometres to reflect updated data on EPA website.

Peter Milne covers business for WAtoday,The Age and The Sydney Morning Herald with a focus on WA energy and mining.

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