Licence granted for controversial mineral sands mine

Victoria's mining regulator has granted a 20-year licence for a controversial mineral sands mine near Horsham in Victoria's west.

Resources Victoria granted the licence to the WIM Resource Avonbank project in Dooen, 15 kilometres north-east of Horsham, licensing the company to mine heavy mineral sands including zircon, titanium and rare earth elements.

The mine site will cover about 3,400 hectares, with the Chinese-backed company planning to mine around the clock for materials used in everyday technology and renewable energy infrastructure.

The company said construction could begin late next year, with mining starting in 2029, pending finances and other construction and environmental approvals.

"This is a major moment for Avonbank, but just as importantly, it is a major moment for the Wimmera Southern Mallee," said the WIM Resource executive team of Eddy Wu and Michael Winternitz in a statement.

The company plans to operate the mine for 36 years, digging up 12.75 million tonnes of heavy mineral concentrate.

It has done so in the face of stiff opposition from residents and the local council, which has previously labelled the company's attitude to community concerns "disgusting".

"Going by my phone calls … I think there's some people absolutely devastated in the community," said Horsham Rural City Council Mayor Brian Klowss.

Licence granted

The Victorian government's mining regulator said it approved the company's licence after determining it had an "appropriate program of work", which it could finance and complete.

However, it rejected the company's request for a 38-year-licence.

The Horsham Rural City Council has previously raised numerous concerns about the proposed mine, including dust issues, and concerns with use of the nearby intermodal freight hub and rehabilitation prospects of the land.

Resources Victoria said mineral handling procedures, real-time onsite monitoring and the mine's operating hours would be finalised as part of the work plan assessment.

"This outcome is as a result of diligent assessment work by numerous agencies and departments at both the state and Commonwealth level," said Resources Victoria director for regulatory operations, Laura Helm.

But Cr Klowss said many in the community felt their voices had not been heard, and that he was "dubious" about the site's rehabilitation plans.

He said while some concerns had been considered, questions remained about real-time air monitoring and a potential mining licence for the nearby freight hub.

"They're devastated about what it's going to do to our community," he said.

Cr Klowss said he was told to expect a licensing decision in January, and that former planning minister Lily D'Ambrosio and current minister Sonya Kilkenny would not speak to council about the mine.

"I'm actually probably curious to know why the decision was made now," he said.

"If these projects were all beer and skittles, I think they'd be here promoting them, but it's quite disappointing that they won't even talk to us about them."

The ABC has contacted the Victorian government for a response.

Victorian Farmers Federation (VFF) president Ryan Milgate said the licensing approval on the eve of an election was fundamentally at odds with the VFF's call for a pause on new critical minerals projects.

Community fund revealed

The Avonbank mine is one of 10 mineral sands projects planned for the Wimmera-Mallee and across the New South Wales border.

WIM Resource said it estimated the project, when complete, would support 1,000 full-time local jobs, and that it would continue to work with traditional owners, councils, landowners, businesses and the broader community.

The company also said it would provide a $40 million community benefit fund, progressively funded over the life of the mine, that would provide long-term investment for communities across the region.

An initial spend of $1 million will be made available across three years before the mine becomes operational, the company said.

"WIM has been listening, working and engaging locally for more than a decade, and as Avonbank moves into its next phase, we want the community to have an even stronger role in shaping what the Project delivers for the region," the company said in a statement.

"There is still important work ahead before construction can begin, and we will keep working closely with Traditional Owners, councils, landowners, businesses and the broader community throughout that process."