The call follows the mineral sands company's announcement that it plans to continue dumping tailings at Douglas after its Victorian operations cease next year.

Kanagulk Landcare Group president Margaret Arthur said the group wanted the government to trigger a full environmental effects statement for Iluka's proposed changes to pit 23.

At an environmental review committee meeting on May 28, Iluka flagged its intention to seek an amendment to the Horsham Planning Scheme to have the site designated a Special Use Zone, allowing for the disposal of by-products.

It will also seek works approval from the Environmental Protection Agency and a licence to operate a landfill at the site, south-west of Horsham.

Mrs Arthur said Iluka's proposal did not take into account the environmental or social implications of continuing to dump low-level radioactive waste at Douglas.

She said a full EES should have been produced before Iluka was allowed to dump any radioactive material from its Hamilton mine separation plant at the site.

"There is already a massive stockpile of monazite-rich by-product in pit 23," she said. "Kanagulk Landcare Group knows water is leaching into the sands at the base of the pit because the mine manager admitted at an environmental review committee meeting that there was no water pooled in the pit during the 2013 wet winter.

"The risk of contamination of ground water much of which flows to the Glenelg River and other lakes and waterholes is very high."

Mrs Arthur said the group believed mining waste should be returned to its source.

"The original EES for the Ouyen mines stated this should happen, but a mine work plan variation sanctioned by government departments allowed a change of plan without the local community being aware of the change until too late," she said.

"Currently ore is coming from Jacinth Ambrosia near Ceduna in South Australia for secondary processing and the waste is being dumped into pit 23 at Douglas. It, too, should be returned to its source, as should any ore coming from Balranald in NSW."

An Iluka spokesman said the company was aware of comments relating to the disposal of by-products from its Hamilton plant at its Douglas site.

"The current practice is in accordance with the approved 2009 work plan variation for the Douglas site and regulatory authorities continue to be satisfied with Iluka's management of that site," he said.

He said all mineral sands, like many other products, contained naturally occurring radioactive materials.

"At the Douglas ERC meeting on May 28, Iluka representatives provided a comprehensive overview of the approvals processes and requirements for the intended long-term disposal of mine separation plant by-products at the Douglas site," he said.

"This presentation clearly outlined the role of the regulatory authorities in ensuring a robust approvals process, as well as the opportunities for stakeholders to have input into this process.

"Iluka has and will continue to liaise with relevant stakeholders to enable appropriate decision-making in relation to the ongoing management of this matter."

Horsham Rural City Council will meet with Iluka representatives on June 23.