Companies back South Australian government looking into Northern Water project for big industry, mining vision
The Northern Water project would have a 260 megalitre-a-day desalination plant (concept shown) on South Australia's Eyre Peninsula and a 600-kilometre pipeline (at right) to transport desalinated water to the far north and BHP’s major mines there.
Image courtesy South Australian government
BHP, Origin Energy, Amp Energy and Fortescue Energy were among private companies who agreed in 2024 to contribute towards the South Australian government investigating the feasibility of the Northern Water project – critical to major industry and mining ambitions for South Australia’s Eyre Peninsula and its north.
The companies agreed to back the South Australia government studies, planning and negotiations, costing around $230 million, on the Northern Water project before a final investment decision was made in 2026. A comprehensive business case found the project had the potential to generate more than $5 billion in annual economic benefit and 4,000 ongoing jobs by supporting industries crucial to the global decarbonisation effort, including copper, hydrogen and green iron, along with defence, pastoral and community uses.
If it went ahead, Northern Water would have a 260 megalitre-a-day desalination plant on Eyre Peninsula and a 600-kilometre pipeline to transport desalinated water to the far north and BHP’s major mines there. Anna Wiley, BHP asset president/copper South Australia said the Northern Water project would support the company’s copper operations and growth: “Global demand for copper is growing fast, and the opportunity for South Australia is significant.” Northern Water aimed to provide a sustainable water source, reducing BHP’s reliance for its mines on the Great Artesian Basin that was nonrenewable and climate-change sensitive.
South Australian premier Peter Malinauskas said the Northern Water announcement laid the groundwork for the sustainable industrialisation of South Australia: “We have all the ingredients the world economy needs as it takes the necessary steps to decarbonise – copper, magnetite, a burgeoning hydrogen industry, the world’s best coincident wind and solar resource, and already world-leading renewable energy penetration. The missing ingredient is water.”
Investigations before the final investment decision included project planning, design and assessment to provide a comprehensive understanding of expected project impacts, opportunities, costs and benefits.The South Australian government and BHP agreed that BHP would cover the state’s costs to a maximum value of up to $100 million if the company withdrew from Northern Water before the final investment decision or if the company decided not to proceed with a water offtake agreement.