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SA Government grants lease for Adelaide Hills mine

News Release

www.premier.sa.gov.au

Hon Paul Holloway

Minister for Mineral Resources Development
Minister for Urban Development and Planning
Minister for Small Business


 Tuesday, 14 October 2008

Minister for Mineral Resources Development Paul Holloway said today a mineral lease has been granted to Hillgrove Resources Limited for the development of the 2 million tons a year Kanmantoo copper gold mine in the Adelaide Hills.

Mr Holloway says Kanmantoo is the second metal mine to be approved in the Mount Lofty Ranges since the Rann Labor Government came into office following last month’s opening of Terramin’s Angas zinc project near Strathalbyn.

Hillgrove, an Adelaide-based resource company listed on the Australian Stock Exchange, intends to resume mining at the Kanmantoo site, which had previously operated until the mid 1970s, he says.

“The granting of a lease to Hillgrove for the Kanmantoo copper gold mine is great news for the South Australian economy,” Mr Holloway says.

“The project 55 kilometres east of Adelaide will provide a boost to the local community with the potential to generate more than 150 new jobs and the injection of $55 million a year into the South Australian economy.”

Mr Holloway also acknowledged the efforts made by Hillgrove to work closely with local community members and interest groups to develop its project.

“Formal community meetings have been held since mid-2005 and the Kanmantoo Callington Community Consultative Committee (KCCCC) was formed in early 2007 to ensure continued consultation throughout the application process,” he says.

Mr Holloway says the KCCCC has identified a range of issues and made 129 written recommendations to Hillgrove, of which 108 have been accepted in full and 21 in principle with some modifications.

“Issues highlighted by this process include native vegetation, transport routes and water usage and their effects on the local communities of Callington and Kanmantoo,” he says.

Mr Holloway says Primary Industries and Resources S.A. is currently working with Hillgrove to develop a Mining and Rehabilitation Program, or MARP, which will set out the operational standards for the project.

“Many of the recommendations put forward by the community as well as the company’s response will be used as the basis for the Mining and Rehabilitation Program now being negotiated between PIRSA officials and Hillgrove,” he says.