Gas pipeline to boost mining potential
Construction of the 292km Eastern Goldfields Pipeline is set to enhance the development prospects for a potential gold mining operation near Laverton.
The $140 million pipeline proposed by APA Group will connect natural gas to AngloGold Ashanti's Sunrise Dam and Tropicana gold mines from 2016.
The AngloGold-backed project also has untapped potential for existing and new mining projects, particularly Gold Fields' Granny Smith mine and Dacian Gold's emerging Mt Morgans project.
The pipeline will cut through the middle of Dacian's tenements, where the company has embarked on a 40,000m drilling campaign to sure up confidence in a mine development.
Dacian executive chairman Rohan Williams, who grew Avoca Resources into a $1 billion-plus gold producer, said the pipeline would offer more certainty for investors as gas was a much cheaper alternative to diesel.
"Anything that brings down the cost of production is great for investors, so if we have a project which needs power and we are able to negotiate with APA to get gas, then it's a great thing," he said.
Mr Williams said there was "heightened investor interest" in gold during last week's Diggers and Dealers Mining Forum, adding Dacian would be better placed to make an investment decision by Christmas once drilling results were known.
Drilling was focusing on the Westralia deposit, which was mined as an open pit and small underground mine in the 1980s, and the Jupiter open pit from the mid-1990s.
"If the dream comes off, then we'll be building mines," Mr Williams said.
Construction of the pipeline - set to begin next February - should take about 10 months.
APA Group has flagged no major hurdles in the approval process ahead of the closure of the Environmental Protection Authority's week-long public consultation period, which ends on Thursday.
In a 929-page document lodged with the EPA, the Sydney-based APA Group outlines its plans for a hook-up to the existing Goldfields Gas Pipeline via the Murrin Murrin nickel mine.
APA Group expects it will need a camp for around 200 workers during construction, but will finalise accommodation requirements once it appoints a construction contractor.
The pipeline will require the clearing of a 30m-wide corridor for the entire 292km, as well as turn-around bays, turkey nest dams, water abstraction areas, borrow pits and access tracks.
The disturbance area, which traverses two pastoral leases at Mt Weld Station and Glenorn Station, is not expected to exceed 915ha.
In sensitive areas within 200m of lakes, the construction corridor will be reduced to 20m-25m to lessen impact on vegetation.
Heritage assessments have found some Aboriginal archaeological sites, but these are not in the corridor.
Blasting will be limited to certain small sections.
Post-construction, APA Group says about 81 per cent of the pipeline right-of-way will be rehabilitated.
