Farmers question waiver

The Daveys believed that according to the mining lease, Rex Minerals required waivers for all land within the lease, including their farm.

But they said the department gave them the impression Rex could start its smaller-scale start-up on the land it owns and seek waivers on the remaining land when it eventually expands to full-scale operation.

"We understood that if they can't get the waivers then they cannot do the operation without changing the design or taking us to court," Mr Davey said.

"Not only is my land within the lease because we are within the blasting buffer zone, it is exempt because it is cultivated land.

"Rex came to me initially about exploration and I said no - not at any time have they had a waiver of exemption from me.

"We border the pit and they require a buffer zone for flyrock from blasting operations.

"If they do not get the waiver they cannot blast in case it comes onto my land."

A spokesperson for Mineral Resources and Energy Minister Tom Koutsantonis confirmed the Daveys' concerns that operations could start without a waiver.

"Rex Minerals cannot undertake any mining or construction on land until they have reached an agreement with the landowner or by an order of the court," the spokesperson said.

"The recent grant of the leases and licence does not give Rex Minerals any rights to access land they do not own, and the conditions applied to its Hillside Mining Lease clearly stipulate that mining cannot be undertaken in a way that impacts on land where access arrangements have not been finalised.

"This does not mean that no operations can start until all agreements are in place - it means that operations cannot result in impacts to land for which access has not yet been agreed."

Mr Davey said he considered this statement to be a backflip by the government.

"It means Rex Minerals can sneak in through the back door and get the operation going without the five farmers who haven't signed waivers consenting," he said.

"But they will need our land eventually for the full-scale operation."

Member for Goyder Steven Griffiths said the government's position on waivers came as a surprise to him.

"I have a clear recollection of the Mining Lease Proposal from Rex Minerals detailing that land such as Mr Daveys' will have an agreement in place by mid-2015," he said.

"How is it that a smaller start up, the full details and implications of which have not been provided to the community, can create a situation where a clearly impacted property owner does not have an agreement with Rex Minerals before mineral extraction activity may start?

Mr Griffiths said he was worried that coercion, and not negotiation, would be forces brought upon people such as Mr Davey.

He has written to Mr Koutsantonis voicing his concerns.

Rex Minerals environmental and stakeholder management supervisor Erica Dearlove said the company was on the same page as the Department of State Development.

"Rex will commence operations once all approvals and funding is in place," she said.