Mullaquana Station, near Whyalla, has been chosen as the preferred site for the proposed Northern Water desalination plant, with two heavyweight consortia shortlisted as best placed to deliver the landmark project.
The site, 20 km south of Whyalla, was identified as the most appropriate for the desalination plant to successfully support regional industrial opportunities, and best balances social, environment and economic opportunities and risks.
A multi-criteria analysis compared the two potential site locations being considered - Mullaquana Station and Cape Hardy, on the eastern Eyre Peninsula.
Criteria for the site comparison included strategic objectives, economic and financial considerations, social outcomes, environmental impacts, and project deliverability.
Building at Mullaquana Station will also save around 200km of pipeline, reducing potential costs and environmental impact.
Earmarking Mullaquana Station as the preferred site for the desalination plant marks an important milestone for the Northern Water Project, enabling project planning, procurement and statutory assessment activities to proceed.
It comes as a comprehensive Expression of Interest (EOI) process has identified two standout consortia as best placed to deliver the project.
WaterConnector consortia is comprised of Acciona Construction Australia Pty Ltd and Acciona Agua Australia Pty Ltd, while Watermark consortia is comprised of Clough Project Australia Pty Ltd (Webuild Group), Fisia Italimpianti SpA (Webuild Group), CPB Contractors Pty Ltd and Sacyr Water Pty Ltd.
The two shortlisted consortia, both of which have vast experience working on Australian and global desalination and pipeline projects, will now be asked to provide detailed bids outlining how they would design, build, operate and maintain the proposed Northern Water desalination plant and pipeline.
Almost 40 individual organisations responded to Northern Water's initial call for Registration of Interest, attracting participants locally, nationally and internationally. Following this, several consortia were formed and invited to submit formal Expressions of Interest.
The competitive procurement process will result in a market-tested proposal that will inform a Final Investment Decision, expected in FY2026/27. If the project proceeds, it has the potential to unlock massive industrial growth, generating thousands of new jobs and billions of dollars in annual economic benefits, while reducing pressure on the culturally and environmentally significant Great Artesian Basin.
Significantly, the project would facilitate increased production of water-intensive copper, with South Australia home to almost 70 per cent of the nation's economic copper reserves.
The project cost would be recovered by future commercial offtake agreements with industrial customers, principally BHP.
The project is anticipated to support more than 4000 jobs per year during construction.
As put by Peter Malinauskas
This is a massive milestone for the Northern Water Project and, potentially, a massive milestone for Whyalla.
South Australia is home to almost 70 per cent of Australia's proven copper deposits, and there is a generational opportunity to maximise the benefit of this critical mineral for our entire state.
If green-lit, Northern Water will support South Australia's strategic mineral industries, including magnetite for steel production and copper expansion at Olympic Dam, Oak Dam and Carrapateena.
My Government's intervention has ensured the Whyalla steelworks could not only be saved, but be given the opportunity to thrive – and this new water supply is poised to become the next big opportunity for the Upper Spencer Gulf region.
We've been pleased with the calibre and volume of responses to our initial registration of interest, but I'm delighted we have now condensed this down to the two highly-credentialled consortia shortlisted.
Northern Water, once constructed, will be a game-changer for the state, and now with the best of the best proposing how they'll deliver it, South Australia's industrial future is indeed looking bright.
As put by Tom Koutsantonis
We know South Australia is leading the world with its uptake of renewable energy, but the opportunity presented by the state's untapped copper deposits is one that needs to be realised.
Northern Water would underpin the minerals sector in our state, generating benefits for individuals, businesses and service providers, as well as international investors.
We're very excited to be working with world experts in desalination and pipeline design, construction and delivery as we develop the opportunity for South Australia to benefit from the project.
Access to this new clean water source for industry, combined with our state's unique ability to generate renewable energy from sun and wind, could underpin the success of not only the region, but the entire state.
As put by BHP CEO Mike Henry
BHP is pleased to become a foundation commercial customer to the Northern Water Project.
This is a compelling example of national strategic infrastructure. It will enable multi-industry regional economic growth, including a potential doubling of South Australia's copper production.
Led by State Government, with Federal Government support, this project represents the best of government and business working together to create investment and South Australian jobs.
As put by Anna Wiley, Asset President Copper SA
Northern Water is an exciting project with the potential to transform South Australia.
A new, long-term supply of sustainable water will unlock South Australia's abundant copper resources and support broader economic growth in the region.
As put by Member for Giles Eddie Hughes
Mullaquana is clearly the best site for the proposed desalination plant from an environmental and economic perspective. It was good to see sites at Point Lowly and further north ruled out given the environmental sensitivity of the Upper Spencer Gulf.
It makes sense to locate the proposed plant near a major industrial city and its contractor base and accommodation. The other benefit is that it is 200km closer to the main user of the water at Olympic Dam, compared to Cape Hardy.
If the project goes ahead it will represent a real economic boost for Whyalla and the Northern Spencer Gulf.
