Environmental Protection Authority approvals process begins for $2.3 billion multi-metal mine near Perth

Mineral explorer Chalice Mining has taken the first step to gain approval to spend as much as $2.3 billion to mine metals needed for the energy transition just 85 kilometres from central Perth.

If the project goes ahead, 500 workers would drive in and out of work from Perth each day – a rarity in WA’s fly-in, fly-out dominated mining sector.

The Perth-based company referred its Gonneville project to the Environmental Protection Authority on Monday, wanting to clear 13 square kilometres of farmland it owns on the southern edge of Julimar State Forest.

The construction workforce would peak at around 1200, with some workers living on site. Construction is expected to begin in 2027, according to the EPA filing.

The mines would produce an array of metals – including copper for wiring and the platinum group of elements, nickel and cobalt for batteries – about an hour’s drive from Perth.

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Chalice is promoting its mine as a strategic asset for Australia as Russia dominates the production of palladium, one of the platinum group elements. A final investment decision is planned for early 2026, and the $447 million company is seeking a partner to share the costs.

Chalice released a Gonneville scoping study in August 2023 that estimated a cost of $1.6 billion to mine 15 million tonnes of ore a year, and $2.3 billion for double that capacity. Its share price then fell almost 25 per cent after investors baulked at higher than expected costs and the assumption that commodity prices would rise well about current levels.

The development is a massive undertaking, requiring a 54 kilometre-long pipeline to transport water from the yet-to-be-built Alkimos desalination plant and a 26-kilometre connection to the south-west power grid.