Kalgoorlie-Boulder mayor defends not releasing Lynas Rare Earths water deal reportJBy Jarrod LucasABC GoldfieldsTopic:Water Supply1h ago1 hours agoWed 30 Apr 2025 at 11:00pmResources Minister Madeleine King and Lynas's Amanda Lacaze at the opening of the Kalgoorlie refinery in 2024. (ABC Goldfields: Jarrod Lucas)In short: The City of Kalgoorlie-Boulder generates millions of dollars by selling recycled water to a newly opened rare earths refinery, but it's led to water shortages in the community.A legal firm has reviewed the council's dealings with Lynas Rare Earths and found no misconduct.What's next?Council is working to address water shortages in the long term with its Water Bank project.abc.net.au/news/lynas-report-finds-no-misconduct-or-intentional-wrongdoing/105232334Link copiedShareShare articleA long-awaited, independent review of the City of Kalgoorlie-Boulder's dealings with rare earths miner Lynas over industrial water sales has found no misconduct or intentional wrongdoing by council staff or elected officials.The controversial 30-year deal signed in August 2021 covers the annual supply of up to 1.7 gigalitres of recycled water to Lynas' newly opened $800 million refinery in West Kalgoorlie, 600 kilometres east of Perth.The contract has drawn significant criticism amid ongoing water shortages, prompting WA Premier Roger Cook to intervene with emergency funding for the Kalgoorlie-Boulder Racing Club.Council engaged Perth-based law firm Civic Legal last year to review the contract and the decision-making that led to the deal.A summary of the findings released by council says councillors entered into the contract "without having full knowledge" of the costs involved and if sufficient water remained to irrigate public spaces.The probity review also found councillors were briefed on other matters, including the proposed sale price of water and the infrastructure that would be required.The newly opened Lynas Rare Earths refinery is on the western outskirts of Kalgoorlie-Boulder. (ABC Goldfields: Jarrod Lucas)Legal advice against releaseKalgoorlie-Boulder Mayor Glenn Wilson acknowledged "significant public interest" in the report.But he said the report would not be publicly released due to "various contractual and confidentiality obligations"."Our legal advice is it could cause issues for the city in the longer term," he said.The Lynas contract is worth millions to the City of Kalgoorlie-Boulder, which reported revenue of $2.7 million from the sale of effluent water in 2022-23 and $3.2 million in 2023-24.The council has budgeted for $4.6 million in sales revenue this financial year as Lynas began taking its full quota.Mayor Glenn Wilson says he is disappointed the report will not be publicly released. (ABC Goldfields: Jarrod Lucas)Mr Wilson said council had since made significant changes to its internal procedures, saying he echoed the disappointment of other councillors who wanted the report released."We are committed to being better and to ensuring every decision is made with the best information that's provided. Our community deserves that," he said."This is ratepayer funds we're dealing with. But does the ratepayer want council to go down the path of potentially having [legal] claims of millions and millions of dollars?"City of Kalgoorlie-Boulder is one of the biggest local government re-users of treated effluent water in Australia. (ABC Goldfields: Jarrod Lucas)Who orchestrated the deal?Much of the criticism for the Lynas deal has fallen on the city's then-chief executive John Walker who left the role in October 2021 with two of his key officers.They were the council's director of corporate and commercial, David Trevaskis, and the director of development services, Alex Wiese.John Bowler, who was mayor from 2015 until 2023, told the ABC in February council had received "poor advice".Former council CEO John Walker (right) signs an MOU with Lynas representative Kam Leung in 2019. (ABC Goldfields: Isabel Moussalli)When the Lynas contract was discussed behind closed doors at an ordinary council meeting on July 26, 2021, the motion passed unanimously 12 votes to nil.Five councillors — Mr Wilson, Deborah Botica, Nardia Turner, Linden Brownley, and Terrence Winner — are still sitting around the table today.Prior to the contract the water was either used for irrigation or discharged onto an area known as Hannans Lake. (Supplied: City of Kalgoorlie-Boulder)Councillors support releaseCouncillor Botica, who has served 30 years as a councillor, expressed disappointment the report will remain confidential saying "our reputations have been scarred".Councillor Winner said the community had more questions than answers."This has been one of the most contentious issues for our community that I can recall for some time," he said."I feel we need to continue to explore ways to try to get these documents released, but obviously not at the expense of significant legal action against the city."Former councillor Suzie Williams pushed for the probity review before she left council in 2023. (ABC Goldfields: Jarrod Lucas)Former councillor Suzie Williams said she was told the Lynas deal "secured the future of the city"."I disagree with the statement that council was not informed that there was insufficient water," she said."I was very aware of the ongoing sustainability of the city to provide water."Ms Williams did not vote on the contract but was a councillor during the early stages of the project.How will they fix it?The City of Kalgoorlie-Boulder is working on a long-term solution, dubbed the Water Bank project.It is touted as a way to drought-proof the historic mining city but its estimated total cost of $92 million also has the potential to break the bank.The project involves building new dams to harvest additional stormwater and grow supplies of recycled water to irrigate parks and gardens.Work is yet to begin as council awaits the results of a $9.5 million funding application through the National Water Grid Fund.Despite several trips to Canberra by the mayor and council staff to lobby ministers, there was no word on the City's application in the federal budget and nothing announced by either party during the federal election campaign.The City's biggest victory to date has been a $5 million commitment towards stage one of Water Bank — estimated to cost about $19 million — by WA Labor during this year's state election campaign.Kalgoorlie MLA Ali Kent (right) with former water minister Simone McGurk during the state election campaign in February. (ABC Goldfields: Jarrod Lucas)Lynas signed in 'good faith'The new cracking and leaching plant — the only facility of its kind in Australia — was officially opened last November.Lynas said the refinery had created 115 residential jobs and established a "forward-facing new industry in the city".Amanda Lacaze has said access to power and water were key reasons why the company built in Kalgoorlie-Boulder. (ABC Goldfields: Jarrod Lucas)"We signed our contract with the city in good faith on the basis of information provided to us," Lynas said in a statement."We are extremely disappointed that this contract — which has provided, and will continue to provide, long-term income and benefits to the city and its residents — has become controversial for reasons outside of our control."Lynas Rare Earths managing director Amanda Lacaze has said access to power and water were key reasons why the company built its cracking and leaching plant in Kalgoorlie-Boulder.Posted 1h ago1 hours agoWed 30 Apr 2025 at 11:00pmShare optionsCopy linkFacebookX (formerly Twitter)Top StoriesThe strange 'ballot-fellows' revealed on parties' how-to-vote cardsTopic:ElectionsPhoto shows green how to vote cards in the background with a text box that says enter your suburbDutton turns to Voice as cost of living alone won't save the CoalitionDAnalysis by David SpeersPhoto shows Anthony Albanese NPC for Speers ColumnPeter Dutton drops vow to change school curriculum, after 'indoctrination' claimsTopic:Public SchoolsPhoto shows Dutton looks down the barrell of the camera.US, Ukraine sign resources deal two months after Oval Office clashTopic:World PoliticsPhoto shows Scott Bessent and Yulia Svyrydenko sign papers at a desk in front of US and Ukrainian flags.Hackers have 'compromised' almost 100 bank employees, experts sayTopic:Cyber CrimePhoto shows A generic graphic image including a gold dollar sign and some websites.Related storiesEx-mayor defends 30-year deal to sell WA city's water to rare earths giantTopic:Water SupplyPhoto shows An industrial plant for processing rare earth minerals. 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