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An area of the Adelaide Hills will be permanently protected after a recent move to knock back a proposed gold mine.
The area known as the Bird in Hand deposit has now been proclaimed by the South Australian governor, blocking future mining operations.
Energy and Mining Minister Tom Koutsantonis said the government wanted to ensure local tourism businesses, including world-class wineries, remained protected.
"Tourism is a vital contributor to this region's local economy and the risk that a short-term mining development could pose to established and significant long-term agricultural and tourism industries is too great and would be contrary to the state's broader interests," Mr Koutsantonis said.
In February, the government knocked back Terramin Australia's application to develop the Bird In Hand underground mine at Woodside.
It said that while Terramin's proposal satisfied statutory obligations and the proposed mine would have had a short life, the potential impact on surrounding businesses and associated regional tourism could have longer-term implications.
Terramin Australia said its board and management were surprised and disappointed by the decision.
It said the mine would have had no adverse environmental outcomes and rejecting the proposal meant the local community missed out on about 140 jobs.
Premier Peter Malinauskas said there was not much sense in creating some jobs at the expense of others.
"That's a balance that we have to get right," he said at the time.
The government said Monday's proclamation of the mine site would prevent future applications for mineral tenements in the area but would not restrict Terramin's ability to undertake any required rehabilitation activities.
