THE guidelines for an Environmental Impact Study were released today for a proposed $1 billion Rare Earths Complex near Whyalla.

The proposal by Arafura Resources Ltd will be assessed as a Major Development, covering chemical processing plants, storage areas for mineral concentrate and raw materials, a desalination plant and evaporation ponds.

In a statement this morning, Mineral Resources Development Minister Tom Koutsantonis said the project could be a catalyst for otherSA miners to extract rare earths for sale to Arafura for processing.

Minerals for the plant will be mined in the Northern Territory, but Mr Koutsantonis said the project had triggered interest from SA mining companies with Eyre Peninsula tenements.

“With a processing plant here for rare earths, it means that any mining potential for rare earths in this state become much more viable – and we do have some rare earth prospects,” he said.

The plant is expected to supply about 10 per cent of the world’s demand for the elements, producing 20,000 tonnes a year if it begins production.

Planning Minister John Rau said up to 1000 jobs could be created during construction, with an “ongoing operational workforce of 250-300 permanent employees”.

The Development Assessment Commission determined the proposal would be subject to the processes and procedures of an EIS, which will investigate the size of the development, the hazards associated with a large chemical processing plant, climate change implications, sensitivity to the Gulf environment, and infrastructure, service and transport requirements and implications.

“As with all Major Developments, this project will be scrutinised at the highest level available under SouthAustralia’s development laws,” Mr Rau said in a statement this morning.

The EIS will be released for community and government agency consultation during which time a public meeting will be held in Whyalla. It will also require a separate approval from the Federal Environment Minister.