Chalice Mining sells in Toodyay, backs in State Government call not to ‘sterilise’ Julimar forest potential

Explorer Chalice Mining has lauded the State Government’s call not to “sterilise” Julimar Forest’s mineral potential, as it dials back exploration next door and sells up staff housing in the thick of a battery metals rut. WA Environment Minister Reece Whitby in June deflected a petition signed by more than 5200 people calling to upgrade the entire sweeping 28,600ha of forest and land north-west of Toodyay to national park status. Outlining advice against the move in a letter to the Legislative Council’s environmental committee, Mr Whitby pointed to new forest management plans and existing and pending mining applications, saying classifying an area of such size “may not be achievable”. Among the reasons was because US bauxite miner Alcoa ultimately had development rights to 7580ha of the area under its Alumina Refinery Agreement Act agreement from 1961. Mr Whitby also said there were “existing and pending exploration licences affecting Julimar targeting minerals used in battery manufacture and green hydrogen technology adoption.” “In summary, Julimar Forest is a significant area for its cultural and recreational values. However, any change in its reservation, including the boundary and tenure arrangements, will require stakeholder consultation and refinement processes.” Chalice chief executive Alex Dorsch said the company had made no submission as to whether Julimar Forest should be upgraded to a national park, but backed in the State Government’s decision. “That said, Chalice is supportive of the State Government’s decision not to sterilise the mineral potential of the State including within the Julimar State Forest, which remains part of Alcoa’s existing Mining State Agreement for bauxite,” Mr Dorsch said. The Julimar Conservation and Forest Alliance and WA Forest Alliance accused Mr Whitby of yielding to mining interests, and said locals were “furious” with the decision. Campaign group spokeswoman Sharon Richards said it was “unbelievable that the environment minister has sided with the mining industry” and WAFA senior campaigner Jason Fowler said the minister was “capitulating” to its interests. It is not the first time the quest for resources has come up against environmental interests in the region, but there has been a sharp change in market conditions in the past few years that had been driving the push for greener metals. Chalice — backed by prospecting veteran Tim Goyder — decided to call time on exploration drilling at its significant nickel-copper-platinum elements discovery in early 2024 after nickel prices entered another bust era. Chalice is working towards a pre-feasibility study for its flagship Gonneville by mid-2025, that it hopes will lead to a formal partnership with Japanese industrials giant Mitsubishi. Ahead of the big drill out programs to prove the resource at Gonneville, Chalice loaded up on a dozen or so private farmland properties worth about $45 million covering its project. It also forked out $1.6 million for the Avalon Homestead, a former bed and breakfast in Toodyay, in 2021 with a view to using it as worker accommodation. But with the company now in cash preservation mode, it’s moved to sell the property for an expected $1.8m. “At the time of the purchase, activity levels at the site were significantly higher than they are now because of the resource drill-out,” Mr Dorsch said. “The drill-out program has now been completed and, as a result of decreased on-site activity levels and labour requirements, the Avalon Homestead is being sold as the accommodation capacity is now surplus to accommodation requirements for the site.” The company has assured detractors that its Gonneville project will be kept firmly out of the forest, despite having done what it says was “low impact” exploration drilling there in the past. “The proposed development of the project will not impact the Julimar State Forest and is being assessed by the Environmental Protection Authority as a Public Environmental Review that was initiated earlier this year, as outlined in our previous announcements,” it said.