top of page

Mining and Farming

Mining has had a long history in shaping Australia since its colonisation and it has been an integral part of our international trade system. More recently the need for rare earth minerals or mineral sands has increased due to the production of new technologies. Wind turbines and solar panels utilise rare earth elements for efficient energy conversion and storage. Rare earths are essential for magnets in electric motors and batteries. As the nation makes the transition away from fossil fuels and towards using renewable energy sources, the increase in the need for rare earth minerals has increased exponentially.

Mining on Farmland

Mining companies hold exploration licences all over Australia. You can see if there is a mining licence on your property by going to Location of resource licences - Resources Victoria . You can put in your address or location, and you will see that there are various types of licences being held by different companies. Some are exploratory, some are retention licences, and some have a mining licence with a work plan. As a landowner you own the dirt you live on, but the state owns the minerals and resources underneath it.

Mining Jargon

overhead shot of digging in a mine
open cut mining pit

In Victoria, an exploratory licence allows for initial exploration to identify mineral resources. A retention licence is granted for areas where resources are identified but not yet feasible for mining, allowing the holder to keep the rights until conditions change. A work plan outlines the specific activities and methods for exploring or mining, ensuring compliance with regulations and environmental standards.

You may have been approached by a mining company to conduct exploratory drilling on your property. By law they need permission to do this. Companies will pay compensation for this drilling and you will be asked to sign a document acknowledging your payment. Your name and the amount you receive will go on a public record by the mining company. Sometimes, when companies are not given permission to access a farmer's land, they will conduct exploratory drilling on a roadside.

You may have allowed a company to drill on your property in the past, being told "nothing will come of it" but this does not mean you have to give them access in the future. 

EES

In Victoria, an Environmental Effects Statement (EES) evaluates the potential environmental impacts of a proposed mining project. It requires the proponent to analyse effects on land, water, biodiversity, and the community. The EES process includes public consultation, allowing stakeholders to provide input, and ultimately informs the decision-making process for project approval. The EES, compiled by the mining company over several years by their own experts, is a lengthy and detailed document. In Victoria, the community typically has 30 days to respond to an Environmental Effects Statement report during the public consultation phase. If a community member or group wants to raise concerns or question the EES finding, they need to employ their own experts or legal team to support their concerns. The 

documentary “Mine-Field” by Barking Media (2022) is about how an East-Gippsland farming community in Victoria successfully stopped a mining company from obtaining a work plan. The only community able to do so. It is a comprehensive study of the mining rules and regulations that govern our state, the EES process and the environmental legacy mining has left the state.

Stay up to date with your local councils strategic plan- does it include mining as part of its vision for the future?

When will I know about an EES in my area?

Unless you stay informed you may be caught unaware that an EES report is available for comment in your area. Be proactive and stay up to date with changes in your region.

In Victoria, announcements about the availability of an Environmental Effects Statement (EES) report for public comment are typically made through several channels:

  1. Government Websites: The Victorian Department of Energy, Environment and Climate Action (DEECA) and the relevant planning authority usually post updates and documents online.

  2. Public Notices: You may see advertisements in local newspapers or on community bulletin boards, informing the public about the EES report.

  3. Direct Notifications: Interested parties or stakeholders may receive direct notifications via email or letters, particularly if they have previously expressed interest in the project.

  4. Community Information Sessions: These may be held to inform the public about the EES and provide opportunities for questions and discussions.

Checking these sources regularly will keep you informed about upcoming EES reports and their comment periods.

Sand Dunes

Mining and Water

Water usage in rare earth mineral mining can vary based on the extraction method:

  1. Open-Pit Mining: This method may require substantial water for dust suppression, mineral processing, and tailings management, potentially using hundreds to thousands of cubic meters per tonne of ore.

  2. Hydrometallurgical Processes: If chemical extraction is involved, significant amounts of water are used in leaching and washing steps.

  3. Tailings Management: Water is also needed to manage tailings and waste, which can lead to additional consumption.

Australia’s monazite is often extracted alongside other heavy minerals like zircon and ilmenite. These operations can consume significant water for mineral processing, typically ranging from several hundred to over a thousand cubic meters per tonne of ore, depending on the method.

The Goschen Project Example

VHM Ltd proposes to mine rare earth minerals at their “Goschen Project” near Lalbert, which sits atop the Parilla Sands aquifer. The Parilla Sands aquifer, is part of the larger Murray Basin and is significant for its role in providing groundwater resources.The groundwater in the Parilla Sands is typically of good quality, but its salinity can vary depending on the location and depth. The Parilla Sands aquifer plays a crucial role in supporting local ecosystems in northwestern Victoria. Here’s how it affects the environment:

1. Groundwater Supply

  • Wetlands and Rivers: The aquifer contributes to the base flow of nearby rivers and wetlands, helping to maintain their ecological health and supporting a diverse range of flora and fauna.

2. Biodiversity

  • Habitats: The consistent groundwater supply supports various habitats, including woodlands, grasslands, and riparian zones, which are essential for many species of plants and animals.

3. Vegetation

  • Irrigation: Agricultural practices relying on the aquifer can impact local vegetation, either supporting crop growth or, if over-extraction occurs, potentially leading to vegetation stress and changes in community composition.

4. Salinity Management

  • Saline Water Issues: Changes in groundwater levels can lead to salinity issues in surface water and soils, affecting plant growth and overall ecosystem health.

5. Microclimates

  • Local Climate Regulation: The presence of groundwater can influence local microclimates, affecting temperature and humidity, which in turn impacts plant and animal behaviour.

Kangaroo Lake is situated within the Parilla Sands aquifer system. VHM’s Limited intends to pump 4.5 gigalitres per year from Kangaroo Lake into the Goschen Mineral Sands Mine project. Hydrologist Dr. Phillip Mccumber has stated that this will raise and overload the underground water table causing salinity. The underground water in the region is part of an ancient inland sea. It is saline. You can’t grow crops on earth that is riddled with salt. The proposed 1500 hectare mine will be going down 43 metres into the earth and below the water table. Contamination of disturbed radioactive rare earth minerals may potentially seep into the aquifer and beyond.

Pink water of Lake Tyrell
Where will the water come from?
In Australia we have a user pays system with water. Mining companies buy and use water from lakes, rivers, underground water and from our water storage dams - your drinking water.
Murray river at sunset

In 2011 The Donald Mineral Sands Project paid $17million to Grampians Wimmera Mallee Water. The Wimmera and Mallee is dependent on the pipeline water from GWM for drinking, commercial and agricultural use as well as recreational lakes and swimming. GWM sources its water supply from lakes, rivers, reservoirs, run-off and the underground water from the Parilla Sands Aquifer. 

Green Fields

Mining and Soil

Rehabilitation?

The Mallee region of Victoria has predominantly sandy soils which are well-drained but low in nutrients. Some areas may also have loamy soils, which have a mix of sand, silt, and clay, offering better nutrient and moisture retention. These soils are classified as fragile. Sandy Soils are highly permeable, low in nutrients, and prone to erosion. Clay Soils, while they can retain water, may be susceptible to compaction and poor drainage. These soils often require careful management practices, such as crop rotation, cover cropping, and reduced tillage, to prevent degradation and maintain productivity. In the Mallee region of Victoria, the depth of topsoil can vary significantly based on local conditions, but it generally ranges from 10 to 30 centimetres, making them further vulnerable. Can you rehabilitate the local soil of this region after mining?

Radiation Risks

Mineral sands mining can potentially lead to increased levels of radiation in nearby crops, primarily due to the presence of naturally occurring radioactive materials (NORM) such as thorium and uranium found in some mineral sands deposits. Here are some key points to consider:

1. Source of Radiation

  • Naturally Occurring Radioactive Materials (NORM): Mineral sands can contain higher levels of NORM, which can pose a risk if not managed properly during mining operations.

2. Radiation Exposure Pathways

  • Soil Contamination: If radioactive materials are released into the soil during mining, they can be taken up by plants, potentially leading to increased radiation levels in crops.

  • Dust and Particles: Windblown dust from mining operations can carry radioactive particles, which may settle on crops.

comparison shot of land rehab at Kulwin mine
hands holding lentils
ACDC Metals reported that:

"If we look at the mineral sands, they’re sitting out in the plains of the Wimmera Mallee. Absolutely good agricultural land, but reasonably low value use and reasonably low population."

Executive Director,  Mark Saxon

 The Mallee produces 97.5% of Victoria’s nuts, 93.5% of Victoria’s grapes and 28.3% of Victoria’s grains. The Mallee's Agricultural Sector has a Gross Regional Product of $4.1 bn. Annually Victoria exports 4-5 million tonnes of wheat and grains, it exports around 20,000 to 30,000 tonnes of lentils and 100,000 to 200,000 tonnes of seed oil. 
Broadacre farming country in the Mallee is priced at $3-4K a hectare. 

The paddocks are full of crops, not housing estates. 

Ian Ross, Chair of  Kanagulk Landcare Group

“It [was] supposed to be a moving footprint, but that never happened, the whole mine site was mined"

Ian Ross, Chair of  Kanagulk Landcare Group

" Large stockpiles of soil were also left on private farmland for the 15 years promised, compacting the ground underneath and killing off any organic and microbial acti

Ian Ross, Chair of  Kanagulk Landcare Group

"In other areas, holes being backfilled weren't compacted properly, so the ground sank and made it impossible to crop."

Taking donations or sponsorship from a mining company can become a very divisive issue for community members, especially for people directly impacted by holding land on a retention licence.

In the Kerang area one local reported:

" The mining company sent people to our football club, and they tried to befriend as many locals as they could, they donated a fancy scoreboard and offered a small sponsorship. They then moved on to more widely sponsor the Central Murray Football and Netball League to promote their so-called  social licence". Anon.

Mining and The Social Cost

When a mining company determines that the retention licence they hold has enough monetary merit, they start to build a ‘social licence’ with the community. This can be done through various transparent and non-transparent ways. Initially companies approach local governments, councils and community development groups to build trust. They then invest in those areas to show a mutual benefit. On a large scale they can invest in infrastructure such as roads, schools, or healthcare facilities, to demonstrate commitment to community well-being. Once these donations or sponsorships are accepted, the mining company will advertise to its shareholders where donations have been made and accepted. This can then count towards their community engagement strategy. The community, by accepting this donation, has then indicated that it is ‘open for business’ and happy to have that company in their community. An issue with this is that communities enter into a ‘transaction’ with the mining company, sometimes unwittingly. This acceptance of a donation or sponsorship gives the mining company leverage in the future.

Mining and Environment

Whilst mining companies in Australia have greater levels of governance or restrictions regarding their practice, as stipulated by their work plan given by the state planning minister, they are able to alter and change their work plan subsequent to its approval. Mining companies in Australia may have higher standards of compliance than in other countries, however, it does not mean that they are always followed.

 

For example the destruction of the Juukan Gorge caves in 2020 by Rio Tinto, which held significant cultural importance to the Puutu Kunti Kurrama and Pinikura people, led to widespread outrage and legal scrutiny. The incident raised questions about compliance with environmental and heritage protection laws.


In August of 2020 the Victorian Auditor General's Office

completed an audit questioning if the state was effectively managing its exposure to liabilities from the rehabilitation of mines on private and public land. It has a comprehensive overview of the mining and bond process. 

If you want to know what planning ministers are happy to approve, then please read more of these highlights from the “Murray Basin Stage 2 Mineral Sands Project Assessment” by the planning minister Mr Justin Madden in 2008: “In addition to actual displacement of residents, there are potential impacts on local residents from dust, noise and radiation…The Inquiry acknowledged that a sudden influx of largely male workers could potentially cause some disruption to the local community...The temporary loss of agricultural land is a direct consequence of mining, while the recovery of agricultural production will depend on effective rehabilitation after mining. An equivalent situation applies to the removal of native vegetation as part of mining…Air emissions generated from the use of earthmoving equipment and transportation of HMC. • Noise emissions generated from construction activities (including earthworks and buildings) and mining operations (including the extraction of ore and overburden, operation of the processing plants and temporary use of diesel-powered generators). • Radiation exposure through direct exposure to radioactive material and internal exposure through ingestion or inhalation of radioactive material. • Visual and landscape character impacts from a modified landscape due to the location of project components, including buildings and stockpiles, and provision of lighting on buildings and vehicles. • Traffic impacts generated by additional traffic, increased road maintenance, restricted access, changed road environment, diversions and detours of local roads and cleared native vegetation in road reserves…The project will operate 24 hours a day, 7 days a week…The EES outlined that all “heavy mineral sand deposits contain traces of uranium and thorium, which are naturally occurring radioactive materials” (EES, p7-117) and most of the radioactivity is associated with the occurrence of monazite... The EES concluded that the project will destroy five known Aboriginal sites, partially destroy two known Aboriginal sites and partially destroy three zones of archaeological sensitivity… The project has the potential to impact on biodiversity and habitat by: • Removing native vegetation, most of which is of at least high conservation significance; • Removing habitat for Malleefowl, Regent Parrot and other protected species; • Fragmenting habitat areas and reducing habitat connectivity; • Increasing weed invasion; • Reducing the number of hollow-bearing trees and habitat availability; and • Increasing predation on native fauna.Involves clearing of 140 ha of native vegetation on Crown land; • Would significantly reduce the availability of feeding habitat for Regent Parrot and other listed species, as well as having a long-term impact on available breeding habitat for a few pairs of Malleefowl…The project has the potential to impact on surface water by: • Increasing salinity in natural ephemeral water flows; • Contaminating land and the salinas; and • Impacting on RAMSAR wetlands. The project has potential to affect the water supply that exists within the study area by: • Reducing availability of water; and • Disrupting the supply of other water users. The project has the potential to affect groundwater by: • Changing the level of the water table; • Reducing groundwater quality as a result of dewatering, storage, disposal, seepage and use of saline water associated with the operations; • Changing groundwater chemistry as a result of groundwater oxidation; • Contaminating the salinas and listed RAMSAR sites; and • Contaminating non-saline soils due to mounding or spillages… The project will require approximately 170m3 of water per hour for mineral processing, which will be sourced from the pit dewatering operations. Up to 60m3 of freshwater water per hour will also be required for mining operations, which will be sourced from two onsite reverse osmosis plants. Supplementary freshwater may be sourced from the Northern Mallee pipeline depending on water restrictions. Bottled water will be provided for drinking and saline water will be used for dust suppression… The EES concluded that the project would generate annual greenhouse gas emissions of 111,287 tonnes of carbon dioxide equivalent per year for the Kulwin deposit and 131,177 tonnes of carbon dioxide equivalent per year for the WRRP deposits. An additional 17,542 tonnes of carbon dioxide equivalent per year will be generated at the Kulwin deposit by the use of diesel generators for a six month period whilst the power line along the Mallee Highway is upgraded”

Mining and our Health

According to Australian Radiation Protection and Nuclear Safety Association:

"Mineral sand ores contain titanium bearing minerals of ilmenite, rutile and leucoxene as well as the mineral zircon. They also contain trace quantities of the radioactive elements of uranium and thorium particularly monazite which is a mineral with reasonable thorium concentration (5-7%). Due to the radioactive nature of the ore ionising radiation exposure in the mining and processing of mineral sands comes externally from gamma radiation emitted or internally from the inhalation of ore and process dusts. 

Dry plant separation processes and the processing, handling and storage of monazite carries the highest exposure risk, predominantly from the inhalation of dust exposure pathway."

Monazite dust, which contains thorium, uranium, and other rare earth elements, can pose health risks if inhaled or ingested. Potential human side effects from exposure include:

  1. Respiratory Issues: Inhalation of dust can irritate the respiratory tract, leading to coughing, shortness of breath, or more serious lung conditions.

  2. Radiation Exposure: Monazite is radioactive; prolonged exposure can increase the risk of developing cancers, particularly lung cancer.

  3. Heavy Metal Toxicity: The presence of heavy metals like thorium can lead to systemic toxicity, affecting kidneys and other organs.

  4. Skin Irritation: Direct contact with dust may cause skin irritation or allergic reactions.

  5. Gastrointestinal Issues: Ingestion of contaminated dust can lead to digestive problems.

  6. Neurological Effects: Some studies suggest that prolonged exposure to certain heavy metals may have neurotoxic effects.

Pathway in Eucalyptus Grove

Rare Earth Minerals-
Why the sudden rush?

Rare Earth Minerals (REM) are integral to producing new technologies in the renewables sector. China has been the biggest producer of REM to date:

China: 60-70%

Australia: 15-20%

United States: 5-10%

Russia: 2-5%

India: 2-3%

Malaysia: 1-2%

Brazil: Less than 1%

In recent years, U.S. investments and collaborations in Australia’s rare earth sector have included multi-million dollar deals and funding for projects aimed at reducing dependence on China for these critical materials. Companies are looking to source REM from companies that have a better reputation for managing the dangers of mining REM due to the radioactive waste it causes and that it is 'sustainably sourced'. The US is also investing in Australia’s REM for weapons production.

Mining and the Law in Victoria

In Victoria, if a landholder does not allow a mining company access to their land for exploration or mining activities, the company can apply to the Victorian Civil and Administrative Tribunal (VCAT) for a land access order.

 

In Victoria, several key pieces of legislation govern mining activities. The most relevant acts include:

1. Mineral Resources (Sustainable Development) Act 1990: This is the primary legislation governing mining and exploration in Victoria. It sets out the framework for the licensing of mining activities, including exploration licenses, mining licenses, and the requirements for environmental and social considerations.

2. Environment Effects Act 1978: This act requires assessment of the environmental effects of certain projects, including mining, that may significantly impact the environment. It outlines the process for environmental impact assessments.

3. Planning and Environment Act 1987: This act governs land use planning in Victoria and includes provisions related to the development of mining projects, ensuring that planning permits are obtained where necessary.

4. Crown Land (Reserves) Act 1978: This act manages the use of Crown land, which can include land designated for mining. It outlines the processes for the management and use of public land.

5. Aboriginal Heritage Act 2006: This legislation protects Aboriginal cultural heritage in Victoria. Mining companies must consider potential impacts on Indigenous heritage sites and engage with Aboriginal communities.

6. Water Act 1989: This act governs the management of water resources in Victoria. Mining activities that may affect water resources must comply with this legislation.

7. Occupational Health and Safety Act 2004: This act ensures the health and safety of workers in the mining industry, establishing requirements for safe working conditions.

8. National Environment Protection Council Act 1994: This act allows for the establishment of national standards for environmental protection, which can impact mining operations.

These acts collectively create a regulatory framework for mining activities in Victoria, addressing environmental protection, land use, heritage, and safety.

Land Mining
bottom of page