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Reducing Reliance on the River Murray Feasibility Assessment Report

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Reducing Reliance on the River Murray Feasibility Assessment Report Prepared by in association with Water Technology and Capital Strategies for WMC Resources taken over by BHP Billiton during 2005 A Water Supply for Regional South Australia: Reducing Reliance on the River Murray Feasibility Assessment Report Published by Murray-Darling Basin Commission Postal Address GPO Box 409, Canberra ACT 2601 Office location Level 5, 15 Moore Street, Canberra City Australian Capital Territory Telephone (02) 6279 0100 international + 61 2 6279 0100 Facsimile (02) 6248 8053 international + 61 2 6248 8053 E-Mail [email protected] Internet http://www.mdbc.gov.au For further information contact the Murray-Darling Basin Commission office on (02) 6279 0100 This report may be cited as: Recovering Water for the Environment – ‘A Water Supply for Regional South Australia: Reducing Reliance on the River Murray’. Feasibility Assessment Report. MDBC Publication No. 17/06 ISBN 1 921038 83 7 © Copyright Murray-Darling Basin Commission 2006 This work is copyright. Graphical and textual information in the work (with the exception of photographs and the MDBC logo) may be stored, retrieved and reproduced in whole or in part, provided the information is not sold or used for commercial benefit and its source (‘A Water Supply for Regional South Australia: Reducing Reliance on the River Murray’. Feasibility Assessment Report) is acknowledged. The information in the report has not been audited and shall not be attributed to any of the organisations mentioned in the report without the prior approval of that organisation. Such reproduction includes fair dealing for the purpose of private study, research, criticism or review as permitted under the Copyright Act 1968. Reproduction for other purposes is prohibited without prior permission of the Murray-Darling Basin Commission or the individual photographers and artists with whom copyright applies. To the extent permitted by law, the copyright holders (including its employees and consultants) exclude all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this report (in part or in whole) and any information or material contained in it. The contents of this publication do not purport to represent the position of the Murray- Darling Basin Commission. They are presented to inform discussion for improvement of the Basin's natural resources. Contents Executive Summary............................................................................................................................................... 1 1 Introduction ............................................................................................................................................. 3 2 Background............................................................................................................................................. 4 2.1 Olympic Dam – Brief History .................................................................................................. 4 2.2 Olympic Dam – Potential Expansion...................................................................................... 4 2.3 Additional Water Supply.........................................................................................................5 2.4 Initial Concept ........................................................................................................................ 5 2.4.1 Overview ................................................................................................................................ 5 2.4.2 Sustainability.......................................................................................................................... 6 2.4.3 Technical Concept ................................................................................................................. 8 2.4.4 Other Considerations ............................................................................................................. 9 3 Existing Water Supply System and Demands....................................................................................... 12 3.1 Olympic Dam........................................................................................................................ 12 3.1.1 Existing Supply Arrangements ............................................................................................. 12 3.1.2 Water Quality ....................................................................................................................... 12 3.1.3 Stability of Demand .............................................................................................................. 12 3.2 Upper Spencer Gulf ............................................................................................................. 12 3.2.1 Existing Supply Arrangements ............................................................................................. 12 Water Quality ........................................................................................................................................ 14 3.2.2 Existing Demand .................................................................................................................. 14 3.3 Eyre Peninsula..................................................................................................................... 15 3.3.1 Existing Supply Arrangements ............................................................................................. 15 3.3.2 Water Quality ....................................................................................................................... 15 3.3.3 Existing Demand .................................................................................................................. 15 4 Future Demands and Water Supply Options ........................................................................................ 16 4.1 Introduction .......................................................................................................................... 16 4.2 Olympic Dam........................................................................................................................ 16 4.2.1 Future Demands ..................................................................................................................16 4.2.2 Limitations of Existing System ............................................................................................. 16 4.2.3 Future Supply Options ......................................................................................................... 16 4.3 Upper Spencer Gulf ............................................................................................................. 17 4.3.1 Future Demands ..................................................................................................................17 4.3.2 Limitations of Existing System ............................................................................................. 17 4.3.3 Future Supply Options ......................................................................................................... 17 4.4 Eyre Peninsula..................................................................................................................... 17 4.4.1 Future Demands ..................................................................................................................17 4.4.2 Limitations of Existing System ............................................................................................. 18 4.4.3 Future Supply Options ......................................................................................................... 18 4.5 Summary of Future Demands and New Supply Opportunities ............................................ 18 5 Private Sector Interest and Cost Estimates .......................................................................................... 20 5.1 Summary of the Request for Information (RFI) Process ...................................................... 20 5.2 Estimated Costs and Water Price ........................................................................................ 20 5.3 Estimated Costs and Water Price ........................................................................................ 22 5.4 Conclusion ........................................................................................................................... 24 6 SWRO Environmental Issues, Risks and Mitigation ............................................................................. 25 6.1 Concentrate Disposal........................................................................................................... 25 6.1.1 Locations Investigated ......................................................................................................... 25 6.1.2 Preliminary Conclusions....................................................................................................... 25 6.2 Power Consumption............................................................................................................. 26 6.2.1 Relative Power Consumption............................................................................................... 26 6.3 Potential Greenhouse Gas Emissions and Mitigation .......................................................... 27 6.3.1 Potential Greenhouse Gas Emissions ................................................................................. 27 6.3.2 Lower Greenhouse Forms of
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