EVALUATION COMPLETE
Providing access to reliable water for agricultural and industrial uses, as well as the development of emerging industries, is a national priority. Mines in northern South Australia rely on groundwater from the Great Artesian Basin and other smaller local aquifers which are at risk of over-extraction. These natural limits will constrain economic development of the region without investment in alternative water sources.
The proposal aligns to the strategic objectives of the National Water Grid Investment Framework by improving water access and security for industrial use to support regional economic growth and development. South Australia has approximately 68% of Australia’s demonstrated copper resources and the proposal supports the South Australian Government’s Copper Strategy, which plans to triple the state's copper production to 1 million tonnes per year by 2030. The proposal also aligns with several Australian Government strategic priorities, such as the Great Artesian Basin Strategic Management Plan, the Murray Darling Basin Plan, the Critical Minerals Strategy, and the Water Security Statement.
PROPOSAL DESCRIPTION
The proposal is to provide a new, climate-independent water source to support South Australia's Upper Spencer Gulf and Far North regions. This would benefit existing and new mines, reduce reliance on non-renewable groundwater sources, enable renewable energy generation and low carbon steel production and improve drought resilience for South Australian Water customers.
A site south of Whyalla has been identified by the South Australian Government for a desalination plant to address this proposal, supported by an existing $65 million National Water Grid Fund commitment for preconstruction activities.
INVESTMENT RECOMMENDATION
The Australian Government should note this proposal as a potential future investment opportunity within the 2-4 year pipeline.
OPPORTUNITIES AND OUTCOMES
This proposal has the potential to:
- Support productivity – secure and reliable water supply would enable growth in industrial and agricultural activities, as well as the expansion of mining activity in the region, supporting broader economic growth and development.
- Support water security – a new sustainable water source would improve water resilience and increase water supply to the northern parts of South Australia.
- Improve environmental outcomes – reducing total groundwater extraction would help replenish groundwater and environmental water flows that are critical for protecting ecosystems.
NEXT STEPS
Proponent to develop a Final Business Case (Stage 3 of Infrastructure Australia’s Assessment Framework) to support the final investment decision that is expected in FY2026-27. Public investment should consider the role of government in stimulating the delivery of infrastructure by the private sector.