Avonbank has been trial mining since 2023. Photo: WIM Resources

TWO MINERAL sands projects in the Wimmera region have secured significant wins in recent weeks, with Avonbank receiving Victorian Government approvals, and Donald gaining conditional federal financing support worth a combined $180 million.

The projects have faced opposition from farming and community groups concerned about the loss of cropping land and their proximity to existing agricultural infrastructure, grain-handling facilities, and residential areas, and fears dust from the mines could contaminate grain crops and other produce.

WIM Resource’s Avonbank heavy mineral sands project, located near Dooen, and about 15km north-east of Horsham, had its mining licence approved by Resources Victoria last month.

The project will mine heavy minerals sands, including zircon, titanium, and rare-earth elements.

These materials are used in a range of products, including renewable energy infrastructure and everyday technology products.

The licence covers up to 3426ha of land over 38 years.

Resources Victoria assessed WIM Resource to have an appropriate program of work, which they can finance and complete.

More than 828 submissions were received by the end of the statutory feedback period and were considered as part of the decision on whether to grant a licence.

Resources Victoria executive director regulatory operations Laura Helm said the approval followed a thorough assessment of WIM’s application against stringent criteria set out in Victoria’s s minerals legislation, and relevant Commonwealth provisions.

“This outcome is as a result of diligent assessment work by numerous agencies and departments at both the State and Commonwealth level,” Ms Helm said.

In a statement, the WIM Resource executive team of Eddy Wu and Michael Winternitz said the approval was “a major moment for Avonbank”.

“WIM has been listening, working and engaging locally for more than a decade, and as Avonbank moves into its next phase, we want the community to have an even stronger role in shaping what the Project delivers for the region,” they said.

“Our focus is not simply on developing a mine, but on delivering a project that creates local jobs and opportunities, supports regional businesses, and leaves a positive and lasting legacy for the Wimmera Southern Mallee.”

Farmers, Opposition critical

The decision to approve the project has drawn criticism from the Victorian Farmers Federation, The National Party and environmental groups, primarily due to Avonbank’s proximity to existing cropping land.

Federal Member for Mallee Anne Webster questioned why the project was approved before proper plans were in place to protect agricultural land.

“We should not be approving new critical minerals projects until proper protections for productive agricultural land are in place and the impacts on farmers and regional communities have been properly assessed,” Dr Webster said.

“This mine is proposed in the heart of one of Victoria’s great agricultural regions — an area that grows, processes and exports high-value produce.

“Horsham Rural City Council and local people have raised serious questions about compliance, rehabilitation, monitoring and who carries the risk if things go wrong.”

Mine Free Wimmera Farms is campaigning to keep mines out of the region, a major producer of crops including wheat, barley, and lentils for export and domestic markets. Photo: Mine Free Mallee Farms Inc.

VFF president Ryan Milgate said he could not comprehend how the government could approve a mining lease which would encompass critical infrastructure and sit close to agricultural facilities.

“I just can’t understand how they would approve that,” Mr Milgate said.

“The railway line’s under the mining licence and there’s a chip-processing facility that’s literally being built now that’s to be within 300m of the mine.”

He said Bunge’s Dooen receival site was also in close proximity, as well as “a pulse packer setting up in that precinct”.

“It’s just absolutely bonkers in our view because…if you get a contamination event or something happens, it’s not just the neighbouring farmer or the neighbouring two farmers; this is the exports from a whole region under threat, so we’re super concerned.”

Donald financial backing

On October 27, the National Reconstruction Fund Corporation (NRFC) and Export Finance Australia (EFA) separately announced financial support for the Donald Rare Earth and Mineral Sands Project.

NRFC’s backing included up to $110M in senior debt to support, while EFA approved up to $70M in financing.

The Donald project will be located 15km east of Minyip and about 66km north-east of Horsham.

A joint venture between Australia’s Astron Limited and US company Energy Fuels, the project will mine both light and heavy rare earths used to manufacture products such as high-performance magnets, electronics, defence systems, and clean-energy technologies.

It has secured all necessary project approvals.

Donald Minerals managing director Tiger Brown and project construction manager Paul Skellern.

NRFC CEO David Gall said the project would “strengthen Australia’s role in a resilient ‘mine-to-magnet’ supply chain”.

“This project has been earmarked as a nationally significant one, but it is no less significant for the people who live in this great part of regional Victoria,” Mr Gall said.

“We know that rare earths such as those that will be produced and processed at this facility are essential for modern life and that securing access to them is a critical strategic priority for Australia and its allies.”

Astron managing director Tiger Brown said the company was grateful to NRFC and EFA for their commitments.

“The funding is a major vote of confidence in the globally significant Donald Project and an important milestone on our long road to making it a reality,” Mr Brown said.

“The project will not only be a strategically important pillar of Australia’s developing critical minerals sector but also deliver lasting benefits much closer to home, for the Wimmera region, its communities, and Traditional Owners.

“Together with Energy Fuels, we look forward to finalising the financing and moving to a final investment decision.”

Ag land impacts

Like the Avonbank project, Donald will be located on existing cropping land.

Environmental group Friends of the Earth said the projects highlighted a lack of consideration for agricultural land, regional communities, and water resources in development planning.

Friends of the Earth campaigns co-ordinator Cam Walker said while each of these projects is subject to an assessment and approvals process, there has been no attempt by the regulator or the Victorian Government to understand the cumulative impacts of these projects combined across an important food production area.

“Across north-west Victoria, a series of large critical minerals developments threaten farming, landscapes, local economies and ground and water supplies,” Mr Walker said.

“There are five main projects currently planned.

“More than 42,000ha of farm land are currently under retention licences.”

Mr Walker said the state government should announce an “immediate halt on any further assessment or approval of any aspect of critical minerals projects” until their full impacts can be understood.

“The moratorium must remain in place until there has been an independent and comprehensive analysis done of the cumulative impacts of all the planned projects”.

“Unless we have a clear understanding of the cumulative impacts of these projects, we run the risk of losing large areas of important cropping country”.