A COMMITMENT of up to $50,000 from the Port Lincoln City Council will kick-start funding for a plan for a designated mineral export hub near Port Neill.
Eyre Regional Development Board (ERDB) chief executive officer Mark Cant made a presentation to the council on Monday night outlining port options for mineral exports from Eyre Peninsula.
He said Port Lincoln’s Proper Bay and the main wharf would both be short-term options that presented issues including traffic congestion, conflict with other users and residential areas, risk of spillage, Port Lincoln’s market image and limitations on expansion.
Mr Cant said the ERDB was “keeping an open mind” but it recognised that Eyre Peninsula needed a mineral export hub to reach its true minerals potential.
He said the community needed to take the initiative to push for an alternative port because Port Lincoln’s port facilities did not have the capacity to provide a long-term solution for mineral exports for the region.
“Eyre Peninsula needs to have a mineral export hub.
“Mining companies will continue to put their focus back on Port Lincoln because of the existing infrastructure ... if you want to change it you have to be proactive.”
Mr Cant said a designated export hub near Port Neill provided a long-term solution, in a strategic location.
He said it would have road and rail access, with the Kimba to Cummins rail line only 30 kilometres away.
It would provide direct loading onto Panamax or Cape Bulker vessels because it is 15 metres deep 50 metres from land and reaches a depth of 18 metres 360 metres from land.
This option would be more efficient for companies in demurrage and shipping costs and provide the capacity to grow mineral exports.
Mr Cant said the Tumby Bay District Council had flagged the possibility for a mineral export hub near Port Neill at recent public meetings and had received majority support from ratepayers.
He has also had discussions with the landowners.
Mr Cant said if a new deep-sea port was built there would also be interest from the grain industry.
Other Eyre Peninsula councils will be asked to contribute to the plan for a new designated export port.
Port Lincoln mayor Peter Davis estimated a conceptual costed plan of a deep sea port would take at least a year and it would be “minimum three years but probably five years” before it could be constructed, and it was clear Centrex wanted to be exporting iron ore earlier than that.
He said maybe the community would have to tolerate short-term mineral exports from Proper Bay for the Wilgerup deposit, or the next five years, whichever is earlier, while a deep-sea mineral port is built.
“I’m disappointed for Centrex because (managing director) Gerard Anderson has told the truth from day one.
“There is no dust and there is no noise in Esperance ... but to do it you need an open field and deep water.
“To do it in a residential area is bloody ridiculous.”