German company K+S Group is planning to evaluate development of a $350 million salt project south-west of Onslow, six years after another salt project in the area was scrapped after facing widespread opposition.
German company K+S Group is planning to evaluate development of a $350 million salt project south-west of Onslow, six years after another salt project in the area was scrapped after facing widespread opposition.
K+S has emphasised that its Ashburton Salt project is in the early stages of development and significantly different from previous proposals in its scale, location, and operations.
It said the approvals process was expected to take three years and a final decision on the project would only be made when the necessary permits had been granted.
The last time a salt project was proposed for the Exmouth Gulf area it attracted a storm of criticism from seafood producer MG Kailis Group, the Conservation Council, and recreational fishing group Recfishwest,
Mining company Straits Resources proposed the Yannarie project, 190 kilometres south of Onslow, in 2006.
It envisaged production of 10 million tonnes of salt per year, compared with 3.5mt for the K+S project, which is near the northern tip of the Exmouth Gulf.
The Yannarie project failed to obtain approval from the Environmental Protection Authority and was quietly shelved in 2010, after being sold to Thai company PTTEP.
K+S is the world’s largest salt producer, with annual output of 32mt, and one of the top potash providers worldwide.
The head of its global salt business, Mark Roberts, said the Ashburton Salt project, if realised, would provide up to 75 full-time jobs while protecting the surrounding environment.
“Minimising environmental impacts on the surrounding area is a priority and Ashburton Salt will be developed using the most advanced technical and management practices,” he said.
“From the outset, environmental scientists are working closely with project engineers, considering potential environmental impacts as part of each step of the design process.”
K+S said its approach to environmental management for the project included the following.
- Locating the project 40km south-west of Onslow, to minimise its interface with the Exmouth Gulf.
- Ensuring an adequate buffer to mangrove communities, recognising these are important components of the ecosystem.
- Minimising impacts on algae mat communities, recognising these are important primary producers in the local food chain.
- Not including long-term storage of bitterns (the salty water produced from seawater evaporation) in the project design, instead investigating other methods of bitterns management in use within the salt industry.
- Minimising, if not eliminating, dredging of the ocean floor through the use of shallow transhipment barges.
Mr Roberts said K+S planned to engage with the local community.
“K+S wants to work with the Onslow and Exmouth communities throughout the project development,” he said.
Mr Roberts said Asia was one region where K+S had a limited presence.
It anticipated growing demand from Asian chemical producers beyond 2020 and believed the Ashburton project to be an accessible and cost-effective source of supply.
Current salt producers in WA, including Rio Tinto subsidiary Dampier Salt and Japan’s Mitsui & Company, have annual production of about 12mt.
Dampier Salt produced 8.1mt in 2015 generating revenue of $US306 million.
Mitsui has two operating subsidiaries – Shark Bay Salt produces 1.3mt per year, while Onslow Salt produces 2.7mt.
In a statement to Business News, MG Kailis Group chairman Michael G Kailis said his group had met with K+S Salt Australia managing director Gerrit Gödecke and been briefed on the early stages of the investigation into the Ashburton salt project, located on the eastern side of Exmouth Gulf.
"This area is known to be critical for the Exmouth Gulf ecosystem and the prawn fisheries in the Gulf that depend on it," the statement said.
"A previous salt project promoted by Straits Resources failed to get environmental approval.
"K+S have advised us that their approach will be significantly different.
"MG Kailis welcomes commitments given by K+S for environmental investigation, protection and monitoring.
"Furthermore, K+S has committed to working with us to ensure the project does not impact on the prawn industry."