Mining for rare earths is vital for renewable energy, but SA farmers fear for the future of their land

Property owners sitting on top of large deposits of rare earths in South Australia’s south-east say mining in the area will ruin some of the country’s best farmland.

Mining company Australian Rare Earths, also known as AR3, is in the exploration stage of starting a new mine. It started test drilling in the Koppamurra area, around Penola and Naracoorte, last year. 

The exploration licence has since been expanded to include areas further north around Keith and Bordertown, and south towards Nangwarry and Tarpeena. 

But the deposits are also on land considered some of the best for farming in SA and the thought of losing it to mining has many worried.

Farmers seeking answers 

Wrattonbully Wine Association president Will Malone raises sheep and grows wine grapes and grain on his property just outside of Naracoorte.

He has been representing other farmers in the region during discussions with AR3 and said there was a lot of apprehension in the community. 

“A lot of people haven’t been involved with mining of any sort in this area in the past,” Mr Malone said. 

“It’s new. There’s a lot of questions that still need to be answered, and until it happens in your area, you probably don’t think about the effect it can have on the community.”

As part of its planning phase, AR3 has dug a trial pit on private property near Wrattonbully, and has been rehabilitating the land since April 2022. 

The trial pit involved using the same mining technique to dig up and refill the land as would be used in the mining process, but did not extract rare earths from the soil.

AR3 chief executive Travis Beinke said the company still had a lot of testing to do before it could provide more detailed answers to peoples’ concerns.

“One of the things we’re really excited about with this project, in particular, is the opportunity to understand the characteristics of the soils as they are today,” he said. 

“[We can] take those learnings and look at what opportunities we have to potentially improve the productivity and sustainability of those lands throughout the rehabilitation process.” 

Green energy fuelling demand 

Rare earths are used in a variety of green energy products, such as electric vehicles and renewable energy storage batteries and wind turbines.

The Koppamurra area is of particular interest for mining as the rare earths are hosted in clay, rather than in rock, which makes it easier to process. 

Once dug from the ground, the mineralised clay will be processed using chemicals to extract the rare earths, before the clay is returned to the ground. 

Mr Malone says uncertainty about this process and how it will affect soil and groundwater post-mining is one of the unanswered questions that has farmers on edge. 

“I’m sure AR3 would like to have the answers to all of these questions, but at this stage they don’t,” he said.

“Until landowners are certain that it’s not going to be an issue for their land, there’s going to be concerns and they’re not going to want to go through with it.” 

Mr Beinke says AR3 will consult with stakeholders and provide answers as studies continue. 

“We go through a process of really getting a deep understanding of what the resource looks like, what a mining practice would look like, what processing those materials would look like and how we interact with the land and stakeholders,” he said. 

“It’s a process which is robust, provides a great amount of information, and an opportunity to ensure the plans we put in place will be environmentally sound and provide the best project for all stakeholders.”