EPA to review Rinehart's Mulga Downs plan

Hancock Prospecting’s plan to develop a 20 million tonnes iron ore project in the Pilbara may still be some time away, after the state’s environmental watchdog decided it should be subject to the highest level of scrutiny.

Late last year, the Gina Rinehart-led company sought approval to clear 9,628 hectares to progress the Mulga Downs Project, featuring mine pits, an air strip, an ore processing facility, on-site accommodation and associated infrastructure.

The development, earmarked for a 40,653ha section of the Rinehart family pastoral station north of Tom Price, is projected to support the production of up to 20mt annually for at least three decades.

The mining magnate had attempted to progress the project back in 2013, but commodity prices dropped and the project was shelved.

In a decision handed down this morning, the Environmental Protection Authority confirmed it believed the proposal warranted a public environmental review, the highest level of assessment undertaken by the EPA.

EPA chair professor Matthew Tonts said the project had the potential to impact flora and vegetation, subterranean fauna from dewatering of groundwater and discharge of excess water and Aboriginal heritage from construction and operation activities.

He said several of the key environmental factors were complex and that a detailed review of the plan was required to gauge its direct and indirect impacts, as well as whether the EPA environmental factor objectives could actually be met.

The plans also drew 30 public submissions during the seven-day public consultation period.

The proposal will be the subject of a six-week public review, with the decision not appealable.

It is not yet known whether the public review process could have any material impact on the company’s project timelines.

Hancock Prospecting has been contacted for comment.

The development is one of three standalone projects within the Mulga Downs project area, including the iron ore mine and borefield, the Murray’s Hill project and the Hub and Rail Spur (which is expected to be referred to the EPA later this year).