COMMODITY CAPERS: A phrase often used by companies entering and exploring in a region before others is ‘First Mover’, however, being the first exploration/mining company in doesn’t give right to that claim.

Sometimes, we need to be reminded that mining, as important as it is to the national economy, is not the be all and end all of Australian industry.

This was demonstrated this week when the South Australian Department for Energy and Mining (DEM) rejected a Mining Lease Application from Terramin (ASX: TZN) for the company’s Bird in Hand gold project.

Terramin responded by saying it was, “surprised and disappointed by this decision”.

The company explained it had submitted its applications on the back of comprehensive scientific studies that demonstrated its mining activities would have no adverse environmental outcomes.

“These studies were peer reviewed by independent and Government experts over many years,” Terramin said.

“Terramin has not been made aware of any issues with the methodology or conclusions of these studies.”

In its release outlining its decision, DEM acknowledged that Terramin’s proposal satisfied relevant statutory obligations.

The company had done everything it should to satisfy technical matters in detail, however, the Minister for Energy and Mining, Tom Koutsantonis was obliged to consider other relevant considerations, including broader state interests such as potential socio-economic and amenity impacts and the effect on existing industries – including tourism – and the local community.

“While the proposed mine would have had a short-term life, the potential impact on surrounding businesses – including world-class wineries such as Petaluma and Bird In Hand – and associated regional tourism could have longer-term implications,” the DEM statement said.

“The Adelaide Hills region enjoys a well-earned clean, green reputation, and this must be safeguarded.”

Taking aim at the decision, Association of Mining and Exploration Companies (AMEC) CEO Warren Pearce ignored these factors and instead slammed the decision as, “a major blow to the entire industry”.

“This decision is a massive setback for the hopes of growing the mining industry in South Australia and reinforces a widely held view that South Australia isn’t serious about developing new projects.

“It also has major implications for the hopes of South Australia to attract new major project investment.

“Industry and investors will now rightly question whether it is worthwhile investing in South Australia, and whether the South Australian Government actually want mining investment.

“It will now be much harder for South Australia to attract new mining and mineral exploration investment.”

The DEM reminded everybody of its role, explaining that developers across all industries in South Australia must submit proposals for community and government scrutiny.

This meant the Government was required to complete a rigorous assessment of Terramin’s application, taking into consideration its location, the complexity of the proposal, and importantly, environmental, and social factors.

In making such a decision the minister was required to deliberate on whether the prospective mine would fit within the existing character and/or amenity of the area and its existing social values.

“This is not a decision I’ve taken lightly or easily,” South Australia Energy and Mining Minister Tom Koutsantonis said.

“I appreciate Terramin’s cooperation in providing further detail about their proposed operation as requested.

“I’m also acutely aware of community concerns about the proposal, including from nearby wineries, residents and the local community.

“The area of the proposed mine is home to a world-class viticulture industry, producing some of Australia’s best-loved wines.

“Tourism to the region is a critical contributor to the local economy and, on balance, there remains a possibility this proposed short-term mine may adversely affect the established and significant long-term agricultural and tourism industries of the Woodside area immediately adjacent the project areas.

“As such, I am not willing to risk these established local industries against the opportunity this short-term mine may provide, and have decided it is in the state’s interest to decline the Mining Lease and Miscellaneous Purposes Licence applications by Terramin for its Bird in Hand Gold Project.”

Warren Pearce responded by indicating that Terramin had recognised the unique characteristics of the mine’s location and had worked hard to draft plans with the wineries involved to ensure multiple land use could be effectively balanced and sensitively managed.

“If the South Australian Government can’t manage to approve a modest gold mine after five years of extensive assessment, how can it be expected to manage and approve the development of much larger and more complex projects?” Pearce said.

First Mover. Those explorers who get in first and are the ones who take credit for finding and utilising the benefits of the regional geology and topography.

There have been many of these scattered throughout the land, particularly in Western Australia where mining thrives in the goldfields, the Pilbara, Murchison, and other mining centres.

Oddly enough, there hasn’t been too many mining applications submitted for mining of the Margaret River region of WA.