Undermines Commonwealth Environment Minister's statutory role.
The Environment Centre NT (ECNT) says last night’s 7.30 Report
revelation that the Prime Minister is lobbying the NT government on
behalf of Xstrata’s McArthur River mine expansion is a sign of desperation.

ECNT has a copy of the letter dated 8 September from the Prime Minister to Clare Martin urging approval for the mine.

ECNT Coordinator Peter Robertson said, “Clearly there is a growing sense that the expansion may not be approved, or may be approved but only with tough environmental and socio-economic conditions which the company is not prepared to accept.

“The Prime Minister, in acting as a lobbyist for the company, has not only highlighted the problems surrounding the project, he has also directly subverted his own Environment Minister Ian Campbell who has to give statutory approval for the mine to proceed.

“It is especially ironic that the PM is lobbying for this mine, despite all the concerns over its impacts on a great Australian tropical river, while at the same time he is trying to block a gold mine in PNG because of its potential impacts on the Kokoda trail.

“The PM’s clumsy intervention may open up the risk of a legal challenge against any subsequent Commonwealth environmental approval for the mine on the grounds that the approval was unduly influenced by the PM’s lobbying rather than scientific or environmental considerations.

“The 7.30 Report also confirmed that the mine receives a $5 million per year energy subsidy ($100 million over the life of the mine) as well as avoiding paying millions of dollars in mineral royalties to the NT government – a double financial blow to the NT public which contradicts the Prime Minister’s claims that mine approval would be good for the economy.

“We remain hopeful that the NT government will not cave in to the PM’s pressure and approve this toxic mine, but will instead act in the best interests of our unique tropical rivers and all the environmental, social, cultural and economic benefits they provide.”