25 August 2011
Yesterday the world's largest mining company BHP Billiton celebrated an unprecedented annual profit of $23.6 billion, 86% higher than its profits the previous year.
Meanwhile it is negotiating with the SA government to expand its Olympic Dam mine to be the largest in the world, and our government has shown its hand by not only foreshadowing its approval, but even setting a deadline for this to occur.
After releasing its 4,600 page draft Environmental Impact Statement, the government received over 4,000 public submissions, demonstrating the huge level of concern in the South Australian community about the long term damage associated with this mine expansion.This is hardly surprising given:
- The expanded mine will increase South Australia's baseload energy demand by around 40%, yet BHP Billiton has so far committed to only 8% of the expanded mine's energy demand coming from renewable energy.
- The expanded mine will generate 68 million tonnes of radioactive tailings per year, which will be stored above ground in an open pit that will leak around eight million litres of radioactive tailings a day for the first decade of expanded mining, then three million litres daily until 2050.
- BHP Billiton do not intend to rehabilitate this pit at the closure of the mine, it will be a permanent toxic blight on the South Australian landscape. World-renowned scientists and doctors have warned of "mind-blowing" adverse health risks to current and future generations of South Australians.
- Liquid acidic tailings retention ponds continue to attract and kill large numbers of waterbirds each year.
- BHP Billiton plans to increase its water use from the current 35 million litres daily (taken at zero cost from the Great Artesian Basin) to over 260 million litres daily. This equates to more than 100,000 litres a minute.
- Much of this additional water will come from a proposed desalination plant at Point Lowly near Whyalla, in close proximity to the breeding ground of the Giant Australian Cuttlefish. This species, a major tourism drawcard for the region, is at great risk from increased salinity levels and is already showing alarming signs of decline.
- Local fisheries also share concerns about the impact of the desalination plant on their livelihood.
- Current plans will see South Australia miss out on the job creation potential of this huge project, with processing of mineral resources to take place in China.
The Conservation Council SA has sought to meet with BHP Billiton to discuss ways to address some of these environmental impacts and achieve higher renewable energy usage, but to date the company has been unwilling to speak with us.
We think BHP Billiton should be prepared to meet with South Australia's peak environmental organisation on this massive development in South Australia.
BHP Billiton is one of the wealthiest companies in the world, and can easily invest some of its enormous profits to reduce the severity of some of these negative impacts in South Australia.
The South Australian government has the responsibility to negotiate the best possible outcome for the state, not higher profits for the executives and shareholders of BHP Billiton.
