Bid to reopen gold mine in Adelaide Hills wine region rejected

A bid to develop a gold mine under an Adelaide Hills wine estate has been rejected by the South Australian government.

Key points: Terramin has been in business for seven years to reopen Adelaide Hills gold mineThe Bird in Hand Cellar along with other winemakers have opposed the developmentThe South African government has rejected the mining lease application

The mining company Terramin has been working for seven years to reopen the mine, which it says could unlock half a billion dollars worth of gold.

The gold mine, which closed in 1935, is located next to the Bird in Hand winery in Woodside.

Despite a department review concluding that Terramin's proposal would have met all legal requirements, Mines Minister Tom Koutsantonis , said the threats to the tourist region were too great to give the mine final approval.

"The proposed mine area is home to a world-class wine industry, producing some of Australia's best-loved wines," he said.

"Tourism in the area is a vital contributor to the local economy and overall there remains a possibility that this proposed short-term mine could harm established agricultural and tourism industries and long-term importance of the Woodside area, immediately adjacent to the project areas."

In a statement, Terramin said it was both surprised and disappointed by the decision of the government.

"Terramin understood that it had provided complete responses to the satisfaction of [the department] and met all regulatory requirements," he said.

"Having gone through this exhaustive process and then being denied the mining lease without a clear explanation of the reasons for this decision is most unexpected."

Bird in Hand winery in the Adelaide Hills objected when the mine reopens. (ABC News: Lincoln Rothall)

T The company said the mine would have created more than 140 high-paying mining jobs "and many other spin-off jobs".

In 2020, Terramin lost a bid to block an expansion project at the Bird in Hand's basement.

At the time, the company claimed the expansion, which included a four-story reception center with an underground barrel room, would have a "huge" impact on the landscape < /p>

Meanwhile, Bird in Hand objected to Terramin's plans because they and other local winemakers said it could potentially contaminate local groundwater.

Terramin also had to formally apologize to the winery after its attorneys were accused of bullying and intimidating Bird in Hand.

The Grateful Bid MPs blocked

The decision to block the mine was welcomed by Independent Adelaide Hills MPs Rebekha Sharkie and Dan Cregan.