The Northern Territory Environment Protection Authority (NT EPA) has completed a rigorous environmental impact assessment of Arafura Resources Ltd’s Nolans Project, and concluded that it could be managed to avoid unacceptable environmental impacts and risks.

The proposal is to mine rare earth elements, key components in many green and sustainable products, such as wind turbines for the clean energy industry and hybrid vehicles. The proposal includes open cut mining and processing over a 55 year mine life.

Mining wastes that include naturally occurring radioactive materials would be permanently stored onsite. The proposal also includes groundwater abstraction from a new borefield and permanent diversion of an ephemeral creek.

The proposed site is 135 km north-northwest of Alice Springs and 10 kilometres west of Aileron roadhouse and Alyuen community.

NT EPA Chairman, Dr Paul Vogel, said the NT EPA identified potentially significant environmental impacts and risks associated with the proposal and made 16 recommendations to avoid and mitigate those impacts.

“This proposal comes with long term environmental risks that will require a high level of ongoing regulatory scrutiny across Government,” Dr Vogel said.

The NT EPA considers that the implementation of its recommendations would prevent or mitigate potential environmental impacts and risks from implementation of the Project.

The NT EPA’s key recommendations focus on ensuring leading practice in management of tailings, residue and waste during operation, closure and post decommissioning. 

Potential contaminants and the presence of Naturally Occurring Radioactive Materials in these waste streams warrant independent technical review and operational oversight to ensure the risks are minimised to the lowest extent practicable and to promote a transparent regulatory process.

The NT EPA considers there is potential for impacts on groundwater hydrological processes and associated environmental values.

The sustainable use and management of groundwater resources is important in an arid zone where the Project is located.

The NT EPA recommends further hydrological investigations including refining the groundwater model, setting site-specific groundwater level triggers and adaptive management of groundwater use.

To ensure best practice closure and rehabilitation, the NT EPA considers the Project should effectively integrate mine closure planning with mine operational planning and that progressive rehabilitation is undertaken during Project operations.

The Mine Closure Plan should incorporate agreed stakeholder rehabilitation objectives, standards and criteria and post-mining land uses prior to approvals.

The Mine Closure Plan should be regularly updated based on research, site investigations and rehabilitation performance monitoring in accordance with the principles of adaptive management.

The NT EPA has recommended that the security bond be revised based on the updated Mine Closure Plan to ensure the costs of rehabilitation and post-closure liabilities are not borne by the Northern Territory Government and the community in the event of the Operator abandoning the site or becoming insolvent.

The NT EPA notes that uncertainty remains around the potential for significant environmental impacts over the life of the Project.

The NT EPA emphasises that the environmental commitments, safeguards and recommendations outlined in the Environmental Impact Statement, this Assessment Report and in the final management plans must be implemented by the Proponent, with a high level of oversight and strong compliance enforcement by the relevant regulator throughout the life of the Project to deliver acceptable environmental outcomes.

The NT EPA has provided its assessment report to the Minister for Environment and Natural Resources, Lauren Moss, for consideration.

To obtain a copy of the assessment report please visit www.ntepa.nt.gov.au/environmental-assessments/register/nolans-project

Media Contact – Department of Environment and Natural Resources - 0437915366