A mining company's application to pump 3,300 megalitres a year from the Roper River has been rejected in-part by the Northern Territory's water controller.
Australian Ilmenite Resources has been allowed to extract 1,649ML a year from the Roper River since 2012 and was seeking to double the size of its licence to allow for expansion plans.
The NT's water controller, Jo Townsend, has extended the company's original licence for another four years, but has rejected its application for an extra 1,651ML a year.
"What I've decided to do is grant half the water that it applied for in line with their existing use ... but the remaining water they're seeking won't be considered until it's been referred to the NT Environment Protection Authority," she said.
"The large expansion of the mine would see a different level of water use and needs to be considered under the Environment Protection Act and the company has agreed to make a referral to do that."
In the lead up to the water controller's decision, there was strong community concerns about the size of the proposed licence and the impact it may have on the environment and the downstream community of Ngukurr.
Ngukurr resident Winston Thompson said he welcomed the decision, but still had concerns about the original licence.
"I’m for rejecting more water licences. It’s good news," he said.
"If they’re going to have the licence for another four years or so, we’ve got to make sure the government or whoever involved is monitoring the water flow from upstream, [because] we’ve got lots of folks using it."
Ms Townsend said the original 1,649ML water allocation was subject to conditions and could be reduced to ensure minimum flow rates in the Roper River.
Prior to significant changes to the NT's Water Act in 2018, a mining company would not have required approval from the NT's water controller at all.
Expansion relies on water
The ilmenite mine, about 100 kilometres east of Mataranka, has this year exported 17,732 tonnes of ilmenite to customers in China and Japan via the Darwin Port.
In its application, Australian Ilmenite Resources said it required 3,300ML a year to increase its production at the mine from 50,000 tonnes a year, to between 100,000 and 120,000 tonnes a year.
"The mine is currently running at a water consumption rate of 4.3 ML a day to deliver a productivity rate of approximately 150 tonnes per day," it said.
"The mine needs about 4,500 tonnes per month to cover basic operating costs and about double that rate to provide a buffer from market variations and to recover original capital investment."
The company said in 2018 it received approval to construct a 9,000ML dam, known as Highway Dam, which would provide the project "with some independence from the river particularly in drier months".
But it said construction of the dam would not begin until production exceeded 100,000 tonnes per year, which could not be achieved unless the company received its full 3,300ML surface water licence.
The company has been contacted for further comment.
