Concerns over contaminated water grow as testing looms for potential Gippsland mine

A new federal government report lists the Glenaladale project as one of 49 around the country it considers key to acquiring rare earth minerals for manufacturing.

Jacob Wallace
February 17, 2026

Rare earth minerals are everywhere: they’re in our phones, our cars and the solar panels on our roofs.

That’s why the federal government has published a list of 49 projects around the country it considers key to acquiring more of the scattered metals.

But one of these projects, a rare earth mine in East Gippsland, has faced strong community opposition – with concerns over water contamination and possible dust pollution.

What happened: On February 4, the Albanese government released the Australian Critical Minerals Prospectus, which lists 49 mining projects across the country it considers key to acquiring minerals needed for the production of clean energy, the defence industry and manufacturing. The list of projects do not come with an endorsement from the federal government.

One of the projects it listed is the Fingerboards Mineral Sands Project, a mine proposed by the company Gippsland Critical Minerals (formerly known as Kalbar Resources) located near Glenaladale, between Stratford and Bairnsdale in East Gippsland.

Malfunctioning lifts and ambulances banked up: Is Bairnsdale hospital on the road to recovery?

The Victorian Department of Health endorsed a plan, which includes an expansion of the emergency service department and upgrades to infrastructure.

What are critical minerals? Critical minerals are elements like lithium, copper, cobalt and nickel that are required for batteries, mobile phones, computers and fibre-optic cables.

What minerals will the Fingerboards mine provide?

The federal government report, which relies on information provided by Gippsland Critical Minerals, says that the project “stands out for its high, heavy rare earths content”.

These heavy rare earth minerals are necessary to build strong magnets that are used in constructing electric vehicles, wind turbines, defence systems and some medical equipment.

How do you remove 23 offshore oil and gas rigs without hurting Gippsland’s fishing industry?

“I don't think when they put [the pipes down] in the 60s, they for a minute thought: ‘One day we've got to pull this out.’”

A long history of opposition

The original proposal for the mine opened for public consultation in September 2020. In November 2021, the state Minister for Planning at the time, Richard Wynne, concluded that the environmental effects of the mine were unacceptable.

Since then Gippsland Critical Minerals has adjusted its proposal.

According to its presentation at a community consultation in Lindenow, the company has reduced the area of the mining and processing plant by 27 percent.

A trial phase of this new proposal is set to begin early this year.

The proposed site for the Fingerboards mine is near Glenaladale, between Stratford and Bairnsdale in East Gippsland.

A new take: The renewed proposal has not assuaged local concerns. Spokesperson for the community group Mine-Free Glenaladale, Robyn Grant, told the Monitor: “We're really concerned because it's between two major gullies that go into the Mitchell River.”

“Any contaminants could contaminate the river and cause serious fish kills and other aquatic species kills.”

Grant said the trial phase won’t prove the mine will be safe because the test mine pit is limited to a depth of 20 metres while the proposed mine will reach 40 metres underground.