However, conservation groups have serious concerns about the development of this industry, and are fearful that these will not be fully addressed by project-specific environmental impact assessment.

Of the proposed developments, the Twelve Mile Project (north of Mildura, east of Pooncarie) is perhaps the most contentious and also the furthest along in the planning and approvals process. The issues surrounding this proposal illustrate the potential conflicts between industry development, and sustainable natural resource management and biodiversity conservation in the region.

The development of the mineral sands industry will create additional competition for the scarce water resources of this semi-arid environment, as extraction and processing of mineral sands requires extensive water supplies. For example, the Twelve Mile Project will require 2500 megalitres of water annually which would come from the Darling River. The demands for this one single development would amount to around 10% of the total water entitlement for irrigation on the Lower Darling.

Groundwater is the preferred water source for many of the proposed mining operations where it is accessible and of good quality. In addition to potentially adverse impacts on groundwater-dependent ecosystems and local salinity levels, additional extraction of groundwater may affect local landholders who rely on it for grazing enterprises.

Once used for on-site processing, the water will be highly saline and tailings from the extraction process contain radioactive elements. Seepage and disposal of used water and tailings could potentially contaminate surrounding aquifers, threatening water supplies for local communities and nearby grazing enterprises.

The Twelve Mile Project is located in one of the largest continuous stretches of intact native vegetation in south-western NSW. These mallee/spinifex and belah/rosewood communities have had minimal disturbance from grazing and fire and are remote from intensive human settlement, making them of particularly high conservation value. There are threatened species present, and the overall habitat values are highly significant.

Twelve Mile is directly adjacent to the western boundary of the Willandra Lakes World Heritage Area, and close to Mungo NP. The siting of such an intensive development in close proximity to an area recognised for its cultural and natural values, and which is managed for the conservation of these values, is of great concern.