Minister for Mineral Resources Development Tom Koutsantonis issued the development approval for global mining firm BHP Billiton’s multi-billion dollar Olympic Dam Expansion Project, clearing the first important stage that would allow the mine company to proceed with its project.

Koutsantonis released the Assessment Report of the Olympic Dam Expansion’s environmental impact statement, which he described as the most thorough and detailed assessment of its kind in South Australia’s history.

He said BHP Billiton is also required to finalize negotiations with the State Government on a revised Indenture Agreement before the expanded mine can go ahead.

Koutsantonis said in a statement tat the approval allows BHP Billiton to construct of a new open pit mine that will eventually consume the existing underground mine with a potential to increase production to approx 750,000 tonnes a year of refined copper plus associated products (uranium oxide, gold and silver).

It will also allow BHP Billiton to expand the existing smelter and build new concentrator and hydrometallurgical plants to process the additional ore and generate additional concentrate for export and construct a new airport to replace the existing facility at Olympic Dam, which will be larger and able to handle aircraft such as the Boeing 737-800 or A320 and support both day and night flights.

The approval likewise allows the company to put up a new gas-fired power station supplied by a new gas supply pipeline from Moomba and build a cogeneration power station to supplement primary electricity supply, among other infrastructure related projects.

“This development approval requires BHP Billiton to commit to more than 150 stringent conditions set out in the 447-page Assessment Report,” Koutsantonis said.

“After thoroughly assessing all facets of this project from the air quality to the marine environment in the Spencer Gulf, I am confident this project can be approved with appropriate safeguards,” he added.

Among the key issues addressed by the conditional development approval includes the impact on the marine environment of the Upper Spencer Gulf from the construction of a desalination plant and a landing facility; effects on air quality for the residents of Roxby Downs, Hiltaba and other nearby townships from both sulphur dioxide emissions from the smelter as well as fugitive dust from the mine construction; impact on both wildlife and the aquifer from the construction of a new tailings storage facility to handle processed waste from the expanded mine; impact on the public and workers of radiation due to mining, storing and transporting uranium oxide; minimizing greenhouse gas emissions, among others.

“There is no doubt that this world class project is good for the South Australian economy, good for South Australian jobs and good for our future prosperity. But we also needed to ensure that these tangible benefits weren’t at the cost of the environment and the health and safety of the community and workers at the mine," he said.

Koutsantonis said BHP Billiton must also acquire development approval from the Commonwealth and Northern Territory governments to clear the remaining environmental assessment hurdles.

BHP Billiton Uranium Customer Sector Group President, Dean Dalla Valle earlier said the project could inject billions of dollars into the South Australian economy for decades to come.

"Olympic Dam is the world's largest uranium deposit and a leading copper and gold resource. The Olympic Dam expansion will deliver enormous benefits to the South Australian economy, including generating up to 6,000 new jobs during construction, a further 4,000 full time positions at the expanded open pit mine and an estimated 15,000 new indirect jobs," Valle said in a statement released early this year.