Legislative Council Committee A, Wednesday 7 June 2023

CHAIR - We're running out of time, there are other areas I want to go. If I can just go to the Group 6 Metals mine on King Island. There was a considerable lack of engagement across government businesses to assist them with the energy. I'm not going to go into that now, it does show a lack of broader government looking at this particular issue.

What I want to know from you as the minister for Resources and working across portfolio for the betterment of the state, we know the Group 6 Metals in 2024-25, 2025-26 is going to have significant overburden, there's an opportunity here for them to relocate that inert overburden - nothing nasty or toxic about it, no acid in it, inert - to put it out in the ocean there and create an all-weather safe harbour.

Despite this, the Infrastructure minister continues to claim that Grassy Harbour is an all-weather safe harbour. Currently, TasPorts have run directions that deny ships access depending on the swell and the wind speed. Several ships have been defined access in recent times, so that is not an all-weather safe harbour.

Here we have an opportunity to work across government to enable Group 6 Metals to deal with their overburden in a way that works to support the redevelopment or construction of a new all-weather safe harbour that actually shields weather from the other direction. What will you do, in your responsibilities here, to work together with the minister for Infrastructure, who's in charge of TasPorts who seems to deny the reality -

Mr ELLIS - First, I reject some of the assertions. We work really closely with Group 6 Metals; this mine has been closed for more than 30 years and it is open now.

CHAIR - We know that.

Mr ELLIS - It is open now, under our Government, and as well, you mentioned before, and so did I, support from Hydro, support from TasNetworks, they use TasPorts, they use Bass Island Line. There's been major support for this mine from government business enterprises and also the Tasmanian government as well,

CHAIR - After they bought a whole heap of generators, yes.

Mr ELLIS - I mentioned a $10 million loan facility, major support that we're all working together on this, Team Tasmania, that's a really important approach. I speak regular with the mine. They acknowledge the work that we have put in together to get this mine that has been moribund. That was effectively a lake in Grassy until a couple of years ago. And I don't think we should forget that because this will be a critical part of Tasmania's ability to meet global supply needs. As I say, they currently use the port, they currently use Bass Island Line, they work really closely together. As I say, I don't think that should be forgotten when we're talking about the broader picture-

CHAIR - Let's talk about the overburden.

Mr ELLIS - What is our posture with working with the mine to get it up and running. As I mentioned before, a $10 million loan facility, this mine in full production -

CHAIR - I want to talk about the overburden.

Mr ELLIS - The mine produces overburden. At full production, they'll be producing 2000 tons of tungsten trioxide per annum containing 3100 tons of concentrate. It's a significant of quantity of tungsten to supply -

CHAIR - Can we talk about the overburden and the opportunity here?

Mr ELLIS - As you and I both know, the Grassy Harbour was actually built from the overburden of the mine -

CHAIR - Yes. I understand that.

Mr ELLIS - Broadly speaking, the mine will work through approvals process in relation to what it does with its overburden. There are some interesting opportunities there. As I mentioned, the harbour itself was built previously from overburden. I might pass over to the team further regarding other discussions that have happened, what the process might look like as far as dealing with the overburden and any other opportunities.

CHAIR - I want to hear from you, before you pass to the department, how you will engage with the minister for Infrastructure, who has basically said no at this point, to considering the use of the overburden to shore up the current breakwater and Grassy Harbour, or particularly, to build a new one out heading down to the north.

Mr ELLIS - I am not going to go into private conservations with other Cabinet ministers.

CHAIR - I am asking how you are going to work with them on this.

Mr ELLIS - Other than to say that we have worked really closely, as a group, on a whole range of enabling infrastructure projects to support this mine. When it comes to electricity supply, when it comes to TasNetworks and Hydro -

CHAIR - They had to buy several diesel generators before that even happened.

Mr ELLIS - As I say, that mine is operating and you are asking me about royalties that have not been paid in 30 years from that mine. We have delivered a $10 million facility.

CHAIR - We are talking about the overburden.

Mr ELLIS - We will work through a process as is proper with that overburden. Now, you are not an environmental scientist, neither am I. It is important that we work through with all of the regulators as part of this process, what that looks like.

CHAIR - I find your comments demeaning. Let us just move to the question here.

Mr ELLIS - Chair, I do not mean to be demeaning. However, I will say that we need to work through a process. That is important. Our community expects that when mines have overburden that it goes through a proper process, particularly when we are talking about putting it in the water.

CHAIR - Of course.

Mr ELLIS - We need to make sure that we are backing in that Island to grow. There are interesting opportunities.

CHAIR - Can I ask about the overburden? The opportunity that exists and how your department might work with the mine, not what they have done already. I am not denying the work that has done already, despite some of the challenges of the future, when this overburden is not available now. They are using their overburden currently to shore-up the seawall. You would know that. I am looking at when the overburden becomes available, that is no longer required?

Mr ELLIS - Sure, would you like me to pass to my department now because I am more than happy for them to add to my remarks.

Mr STEWART - If there is to be a change to the management of overburden there would need to be a couple of different approval processes that would be required. The current mine plan that the site is operating under would need to be changed and that would need to be approved by the Director of Mines. More importantly, the critical step would be the environmental approvals. That would be managed by the EPA through their permit. There may be implications under federal legislation as well for environmental approvals.

CHAIR - The Director of Mines has a key role to play here, in redefining the use of the overburden?

Mr STEWART - Certainly, if the company wanted to change the way that they manage their overburden moving forward, or make a change to their mine plan, that gets approved and worked through by the director.

CHAIR - The Director of Mines would work actively with them to identify the other areas, like the environmental matters with EPA? We are talking about a collaborative approach to try to make the best of both worlds here.

Mr STEWART - Yes and typically what happens there is that MRT would assist in getting all of the parties together.

CHAIR - You would do that?

Mr STEWART - When there is a new mine or when there is a revision to a mine plan or a closure plan, any of those elements of the operation, the Director of Mines and the relevant inspector from MRT would get together with the EPA, the company, potentially landowners, any other stakeholders, local government and work through those issues, subject to what they are. As I said, there may be implications under Commonwealth legislation as well.

Further reporting on the questions raised here can be viewed on The Advocate website:

https://www.theadvocate.com.au/story/8225333/government-slammed-for-inaction-on-all-weather-king-island-harbour/?cs=87https://www.theadvocate.com.au/story/8225333/government-slammed-for-inaction-on-all-weather-king-island-harbour/?cs=87