Mining

Photo: Protestors spell out their message to the NT Government outside Parliament House, October 2006.

Tuesday 17th October
On Sunday 15th October, over forty Traditional Owners drove 1000km from Borroloola to speak to the Martin Government and the wider public about their opposition to the McArthur River mine expansion.
The Government, fearing the strength of opposition from the local community, decided to pre-empt their arrival in Darwin by announcing approval for the expansion late on last Friday afternoon.
Despite this dishonourable act, over the next two days the McArthur River people and the Environment Centre will be highlighting the many flaws in the mine plan and the decision to approve it.
A statement will be handed to the Government asking that the approval be suspended pending an independent review of alternative mine plans that do not involve diverting the river and polluting the river, groundwater and the downstream marine environment.

11 September 2006
The Environment Centre NT; Mabungi Aboriginal Resource Association; Australian Conservation Foundation; The Wilderness Society and Australian Marine Conservation Society express grave concerns regarding the approval of the McArthur River mine expansion in a joint letter hand delivered to Minister for Mines, Chris Natt MLA.

To view the letter click here

Background

The McArthur River mine is operated by McArthur River Mining, which was formerly owned by MIM Holdings but was bought by the Swiss company Xstrata in 2003. The mine opened in 1995 despite a strong and vocal campaign by the Environment Centre NT and the Australian Conservation Foundation. The mine received significant financial assistance from both the Commonwealth and NT Governments including funding of major infrastructure, tax and royalty concessions. The Environmental Impact Assessment process was also fast-tracked, with the entire process in 1992 taking less than 6 months. Much of the documentation of the EIS process was deemed commercial-in-confidence and not made publicly available.

Proposed Expansion

MIM Holdings announced their intention to expand their McArthur River Mine lead/zinc/silver operations on the 11th February 2003. Already a huge mine, MIM initially planned to quadruple the amount of material processed each year, build a processing plant on-site, and construct a weir across the Glyde River. However, more recently, and since the takeover by Xstrata, the scale of the proposed expansion has been reduced. The mine is currently an underground operation with the orebody directly underneath the McArthur River. If the expansion proceeds Xstrata plan to dig an open cut pit in the current location of the McArthur River, and re-route the river over a section of about 5.5 kilometres. This would require constructing a huge channel, building a 30-35 metre high wall around the open cut pit.

After the McArthur River mine opened in 1995 lead prices fell considerably and the operation posted a loss in 2001-2002. In fact the mine has never paid any mineral royalties to the NT Government because it has operated at a loss. Xstrata believes that by pursuing the open-cut operation they will reduce production costs and increase the available mineral reserves.

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Environmental Issues

The major environmental impacts of the proposed expansion are likely to include:

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Status of the Project

MIM lodged a Notice of Intent with the NT Government in 2003, which then determined that an Environmental Impact Statement (EIS) was required under NT legislation. Guidelines for the EIS were finalised and the Company commenced work on the EIS. The project was also referred to the Commonwealth and triggered the EPBC Act via the threatened species and migratory species triggers. The Draft EIS was released for public comment in August 2005 -
see http://www.lpe.nt.gov.au/enviro/EIAREG/McArthur/default.htm

The NT Government initially welcomed the project and talked up its economic benefits. The Chief Minister told NT Parliament in 2003 that "The opportunities for Territorians to get highly skilled, highly paid jobs associated with these expansions are tangible- it is great!". A government committee was set up to fast-track and facilitate development of the project. A 40 metre deep open-cut test pit covering 6 hectares was approved by the NT Government in mid-2005.

However, in February 2006, the newly created Environment Protection Agency (EPA) Program rejected the proposal in its assessment of the EIS. An independent geomorphological report, produced by tropical river expert Prof. Wayne Erskine, raised significant doubts that the diversion channel would not pose a threat to the McArthur River in times of routine flood events. For more detail on why the EPA Program rejected the proposal click here.

Traditional Owners Views on the Expansion

Traditional owners had no right of veto over the original mining proposal at McArthur River and the company failed to negotiate an agreement or royalties following development of the project. While Traditional Owners have a Native Title claim over the mine site, they still have no formal veto rights over the new project. On meeting with many of the traditional owners in Borroloola it was clear that there were many concerns about the possible impacts of the project. In 2003, Harry Lansen, a senior traditional owner for the mine site opposed the expansion on ABC television's Stateline program saying "It is no good. I will be sick if they cut the place, because my spirit is there. All my songs are across the river.I don't want to see that thing happen in the McArthur River."

Yanyuwa Traditional Owners living downstream of the mine and in the Sir Edward Pellew Islands have been extremely vocal in their opposition to the mine. Stephen Johnston, a Traditional Owner for Vanderlin Island has recently said: "The Yanyuwa people in Borroloola are getting their islands back after 29 years (through a land claim settlement), only to have their river taken away. McArthur River Mining has not consulted Yanyuwa people or other Aboriginal language groups downstream of the mine. The NT Government must protect the rights of economically impoverished indigenous people and their country".

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ECNT's View of the Expansion

ECNT is extremely concerned about the likely environmental and social impacts should this project proceed. From our analysis it looks to be one of the most destructive mining proposals seen in northern Australia. If the project continues to proceed as proposed it would have devastating impacts on the McArthur and potentially the fisheries in this river and downstream in the Gulf, and leave a lasting legacy of waste on the mine site.

The original expansion proposal in 2003. Note: the current proposal will have a pit about half the size of the one depicted. MIM Factsheet 2003

MORE INFORMATION

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