South Australia’s industrial future is a step closer to a major transformation, with Mullaquana Station near Whyalla officially chosen as the preferred site for the landmark Northern Water desalination plant. The announcement marks one of the most significant milestones yet for the Northern Water Project, paving the way for detailed planning, procurement and assessment to begin as two heavyweight global consortia prepare to put forward their bids.
Located 20 kilometres south of Whyalla, Mullaquana Station was selected following an extensive multi-criteria analysis comparing it with Cape Hardy on the eastern Eyre Peninsula. The assessment examined strategic objectives, economic and financial considerations, social outcomes, environmental impacts and project deliverability. The Whyalla-adjacent site came out ahead not only for its industrial positioning but also for its ability to reduce pipeline requirements by around 200 kilometres—saving costs and minimising environmental impact.
The project has now attracted two powerhouse bidders. WaterConnector, led by Acciona Construction Australia and Acciona Agua Australia, and Watermark, featuring Clough Project Australia (Webuild Group), Fisia Italimpianti (Webuild Group), CPB Contractors and Sacyr Water, will now prepare detailed proposals outlining how they would design, construct, operate and maintain both the desalination plant and its distribution pipeline. Nearly 40 organisations responded to the initial registration of interest, with the strongest groups now progressing.
Premier Peter Malinauskas says this moment represents a huge step forward for Whyalla and the broader Upper Spencer Gulf. “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.”
Malinauskas says the calibre of responses to the project has been exceptional, adding that with two highly credentialled consortia shortlisted, “South Australia’s industrial future is indeed looking bright.”
Energy and Mining Minister Tom Koutsantonis says the state is leading global renewable energy uptake, and the Northern Water Project will be pivotal in turning South Australia’s rich copper reserves into long-term economic gains. Koutsantonis said, “Northern Water would underpin the minerals sector in our state, generating benefits for individuals, businesses and service providers, as well as international investors.”
BHP CEO Mike Henry has confirmed BHP will be a foundation commercial customer, calling the project “a compelling example of national strategic infrastructure” that could enable a potential doubling of South Australia’s copper production. Asset President Copper SA Anna Wiley says the project has “the potential to transform South Australia,” unlocking long-term economic growth and securing a sustainable water supply for major industry.
A final investment decision is expected in FY26/27. If approved, the Northern Water Project is anticipated to support more than 4000 jobs per year during construction, spark billions in new economic activity and reshape the future of South Australia’s industrial heartland.
