hi windog the water in the slurry pipeline gets reused according to this document a smaller return pipe brings back the water to the minesite.
Being in Albany they get more rainfall than Perth I would say also being close to the coast a desalination plant could be used if neededI think the bigger issue would be energy supply and cost, remember Australia is almost a third world country when it comes to energy supply these days.
http://www.grangeresources.com.au/clients/grange/downloads/item117/grange_fact_slurrypipe.pdf
Southdown Project, page-7
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