Who owns the land at Point Lowly?

The land (about 2500 hectares) is under the care and control of the State Government. It is away from freehold house blocks and the heritage area.

The land, like other significant State owned land holdings, is held in trust to be used in the best interest of all South Australians.

What is the zoning?

The Point Lowly Peninsula from Fitzgerald Bay Road to the coastal reserve was until the early 1980’s part of the Cultana Defence Training area.

Following the commissioning of the SANTOS’ Port Bonython plant in 1984, a Supplementary Development Plan was prepared (1990) to rezone the land on Point Lowly Peninsula to allow for industrial development which may be appropriate for the region and the State. Primarily these were industries using gas resources from the Cooper Basin. A Special Industry Zone was determined the most appropriate zoning for the area with the need for a high level of environmental protection highlighted.

The City of Whyalla’s conversion to the Better Development Plan process has introduced a local variation for the Point Lowly area. This is based on the existing zone provisions to guide specialised forms of development and assist in establishing local projects.

The zone has been renamed Industry (Port) Zone. The objectives of this type of zoning, as described in the City of Whyalla’s Development Plan Amendment (Dec 2007) are:

1. a zone primarily accommodating industry of significance to the State or region that is dependent on a portside location or capitalises on existing industry or infrastructure within the zone
2. the development of chemical industries that are compatible with existing industries and are designed to maximise the sharing of infrastructure and resources, and the trade of downstream products.

The local variation has been the subject of a mandatory community consultation period. This consultation was facilitated by an independent body and feedback provided to Planning SA, granting the community the opportunity to comment on the zoning and its implications

What is proposed?

The following private sector projects are proposed:

• bulk commodities export facility and new jetty
• fuel refinery
• possible second refinery
• BHP Billiton Desalination Plant
• Kingfish Harbour

The first four projects need access to deep water or to the Government owned Port Bonython jetty used by SANTOS.

No other processing industries are proposed for the site and the State Government has no intention of supporting any further processing industries other than the above mentioned.

Why Whyalla and in particular this site for these projects?

The State Government has been working with the Whyalla Council, Whyalla Economic Development Board and industry for several years to expand the economic base of the town. As a result Whyalla is fast becoming an important hub and service centre for major regional developments, including the giant Olympic Dam copper / uranium mine and the ever increasing exploration and mining activities within the State.

Transport is integral to the iron ore industry which requires large trains and ships to operate viably. The Port of Port Bonython is ideal because it has deep water capable of accepting Cape-sized vessels, is close to rail and has the appropriate land zoning.

The desalination plant requires deep water with strong currents to mix the waste stream with sea water.

The deep waters around Point Lowly meet these requirements.

The refinery products need access to the existing hydrocarbon facilities on the Port Bonython jetty used by SANTOS.

What other sites have been investigated as possible locations for these projects?

Two sites south of Whyalla with deep water have been suggested for investigation.

The State Government has agreed to undertake and fund initial research into an alternative site for the export of iron ore.

How much land is required for the projects?

Only about 500 hectares (flat land) of the 2500 hectares owned by the State Government on the Point Lowly Peninsula will be developed for these projects. This includes a substantial buffer zone around each project. The majority of the land will be set aside as native vegetation offsets for the small amount of native vegetation removed.

What are the approval processes for these projects?

Major developments such as these will require approval by Planning SA and are subject to a formal and independently assessed Environmental Impact Statement (EIS) process under development legislation. The strict EIS process provides an opportunity for community, including special interest groups, to provide input.

As part of the approval process, any developer proposing facilities on the Point Lowly Peninsula will need to rigorously address a range of environmental (giant cuttlefish, aquaculture) and social (tourism and local recreation) issues. No project will be approved until all environmental and social requirements are met.

Why is a new jetty needed? Why can’t the ore exporters use the existing OneSteel or Santos facilities?

The State Government has had ongoing discussions with OneSteel about the use of any spare capacity by other iron ore exporters. OneSteel recently announced a 50% increase in exports from its Whyalla operations. This increase coupled with the company’s internal analysis on its future iron ore business has all but eliminated the use of OneSteel’s facility as an option for other iron ore exporters.

The Port Bonython jetty, used by SANTOS, is suitable for the export of hydrocarbons only and will be used by the refinery projects.