THE last time a gold mine wanted to buy Bathurst’s treated effluent, the council of the day soundly rejected the plan.
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Of the nine councillors in office in 2008 when Orange’s Cadia Mine made the approach, just one supported the sale.
Councillors who objected to the sale spoke about the need to protect Bathurst’s water resources, particularly in times of drought.
It was noted just what an impact the Cadia mine had already had on Orange’s water assets and councillors did not want to see Bathurst’s water security threatened in the same way.
As Bathurst Regional Council considers a new proposal to sell the city’s treated effluent – this time to Regis Resources to operate the proposed McPhillamys Gold Project near Blayney – one has to wonder if very much has changed at all over the past eight years.
Both approaches are from companies operating outside the Bathurst council boundaries, and both proposals would inevitably impact on the Macquarie River.
What we don’t know, though, is just how much Regis is willing to pay for this water.
Water’s value can only have risen since 2008, so just what is it worth to council today? More importantly, what is it worth to Regis?
At 50c a kilolitre, council would reap around $1.5 million a year from Regis. At $1 a kilolitre, that figure rises to $3 million.
Multiply either of those figures over the 10 or 15-year life of the mine, and we’re talking a serious cash injection.
What hasn’t changed since 2008, though, is council’s responsibility to protect this region’s water security. A water sale to a mining company does not do that.
Bathurst is rightly proud that the region has never suffered through water restrictions, even through the worst of droughts. Indeed, water security is one of council’s greatest selling points when pitching the region to potential investors.
A new gold mine would undoubtedly bring economic benefits to the entire Central West, but at what cost for Bathurst?
Councillors in 2008 made the right decision in not selling Bathurst’s treated effluent to Cadia.
Can today’s councillors match their wisdom?