Southern Rural Water has refused an application from Alcoa for a groundwater licence to fill its former coal mine at Anglesea.
Alcoa applied to extract 1,500 megalitres of groundwater a year for 10 years as part of its proposed mine closure and rehabilitation activities.
Southern Rural Water undertook a rigorous licensing application process to consider the proposal, including extensive public consultation and the appointment of independent Submissions and Technical Review panels.
In its decision, Southern Rural Water determined that the proposed licence would be likely to result in small but potentially significant reductions in shallow groundwater levels and river flows.
It also found that granting the licence may pose an increased risk of acid generation and no-flow days in the Anglesea River and estuary. The catchment is naturally acidic and has a history of low river flows and acid flush events.
The Anglesea River catchment provides considerable cultural, environmental, social and economic values and a precautionary approach to licence applications is warranted.
The mine pit is projected to fill itself naturally in as early as 26 years and the benefits of a rapid fill are limited when compared to the potential risks of the extraction of groundwater.
Public Submission and Hearing Report
Independent Technical Panel Report
FAQs: Alcoa groundwater licence application decision
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Why has Southern Rural Water refused Alcoa’s application for a groundwater licence of 1,500 megalitres a year for a 10-year period?
The Anglesea River catchment provides considerable cultural, environmental, social and economic values. The catchment is naturally acidic and ephemeral, and it has a history of low river flows and acid flush events.
The proposed licence is likely to result in small but potentially significant additional groundwater drawdown in parts of the shallow swamp aquifer system, with an increased risk of acid generation, and a reduction in surface water flows. These changes may result in an unacceptable increase in risk to the environment and the range of other values that depend on the Anglesea River.
There remains a high degree of uncertainty regarding the hydro-geochemical processes in this catchment and a precautionary approach to licence applications is warranted.
The pit is projected to fill naturally in as early as 26 years (compared to 10 years rapid fill) and the benefits of a rapid fill are limited when compared to the potential risks of the extraction of groundwater.
Consequently, the licence application has been refused.
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What process did SRW use to assess the licence application?
Southern Rural Water undertook a comprehensive and rigorous licensing assessment process. This included:
- public advertisement and open house sessions
- referral of the application to relevant agencies
- a public submission hearing
- a report by an independent submissions panel
- a detailed technical review of the application by an independent technical review panel and an assessment under the Water Act (1989).
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What other agencies were involved in the process?
Under the Water Act 1989 Southern Rural Water is required to refer the application to relevant agencies with an interest in aspects of the application ranging from water quality, catchment and riparian health to community and cultural interests.
The referral agencies for this application were: the Environment Protection Authority (Victoria), the Corangamite Catchment Management Authority, Barwon Water, Surf Coast Shire Council, Resources Victoria (formerly known as Earth Resources Regulation), Wadawurrung Traditional Owners Aboriginal Corporation and the Department of Energy, Environment and Climate Action.
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Can Alcoa appeal the licence decision
Yes, anyone can lodge an appeal to the Victorian Civil and Administrative Tribunal within 28 days of the decision being made.