Independent Monitor for McArthur River Mine

NT Govt media release

Victorian company Environmental Earth Sciences (EES) has been appointed the Independent Monitor for the McArthur River Mine (MRM) project.

Minister for Mines and Energy Chris Natt said the appointment of an independent monitor was a condition of the project being approved last year.

“Xstrata agreed to fund the appointment of the monitor and the payment of a $55.5 million security bond to be reassessed annually.

“EES will begin monitoring the environmental performance of McArthur River Mine in November for five years.

“The company will also review environmental assessments and audits undertaken by the Department of Primary Industry, Fisheries and Mines.

“Specific clauses have been put in place to ensure EES is completely independent from both the mine operator and the Territory Government.

“EES will not be responsible for reviewing either mine safety or social issues arising from the mine’s operation.

“Reports from the Independent Monitor will be posted on its website so that everyone can access the information.

“The tender specifications for the monitor were developed with input from community groups and stakeholders.

“The Territory Government remains committed to delivering a strong and growing economy and to promoting environmentally sustainable development,” said Mr Natt.

Govt seeks environmental monitor for McArthur River Mine

The Northern Territory Mines Minister has announced the Government will soon ask for tenders for an independent environmental monitor for the McArthur River Mine.

Mines Minister Chris Natt made the monitor a condition for approving the diversion of the McArthur River for five kilometres, to allow for an expanded open-cut lead and zine mine.

Environment Centre Northern Territory spokesman Charles Roche says his group was consulted about the role of the monitor early this year.

But he says there has been no follow-up since then.

“As far as I know, MRM [McArthur River Mine] will still be making most of the decisions about what is monitored,” he said.

“So at that stage, we saw there was still a real lack of independence for the monitoring program, and hopefully that’s been rectified.”

Mr Roche says when he last saw the project two months ago, most of the land clearing had already been done.

“I am concerned that by only starting in November 2007, that whoever the successful tenderer will be won’t have the baseline information that’s required to monitor this mine and river diversion effectively,” he said.

He says Justice John Mansfield has adjourned a decision on whether the Environment Protection and Conservation Act was followed properly.

“If a decision is made in favour of the plaintiffs, then we would expect that the approval for the mine would once again be declared invalid as it was earlier this year, and all work at the mine and the river diversion would have to cease,” he said.

from the abc…

Xstrata finally makes payment

Amazing what happens when a bit of pressure is applied. It seems the open-cut mine is being credited with improving profitiability before it has even been developed. I wonder if the 26 million had anything to do with Clare Martin’s support for this project? what is the going rate for some ‘quick fix’ legislation to help a  mate? no wonder the Traditional owners couldn’t get a fair hearing.

 From Rueters

Swiss-based mining company Xstrata  said on Monday it had made an initial royalty payment to Australia’s Northern Territory government from its McArthur River zinc and lead mine, where it is appealing a court ruling against a major revamp.

Xstrata has been proceeding with construction work to transform the underground lode into an open pit mine while awaiting the outcome of an appeal over a court ruling that said the Northern Territory government failed to follow the correct legal procedure when it approved the revamp.

Xstrata has warned that if it not allowed to dig an open pit at the site — costing A$110 million ($96 million) — it will be forced to close the mine, which opened in 1995.

The company said it had made a royalty payment of A$13.06 million to the Northern Territory government, representing half the total payment for calendar 2007.

“Payment of royalties is largely dependent on global commodity prices and the recovery of costs of both the mine’s establishment and the open pit development,” Xstrata said in a statement Monday.

Xstrata wants to dig an open pit at the mine to replace an ageing underground operation that is running out of rich ore, requiring the diversion of the McArthur River for 5.5 km (3.4 miles).

It won approval from the Territory’s Ministry of Mines last year, but the decision was overturned by a legal challenge by traditional Aboriginal land owners. Environmentalists fear that prolonged rainy seasons pose a risk that contaminated seepage from mining and milling will reach the 300-km long McArthur River.

A changeover would give the mine the capacity to produce about 430,000 tonnes of zinc and lead-bearing concentrate a year, up from 320,000 tonnes.

It would also carry the potential to produce a bulk-type concentrate, or ground ore, with lower lead content, which could be processed in conventional smelters, the company said.

McArthur River yielded 135,000 tonnes of zinc in concentrate last year, but output was expected to be less than half that this year, allowing for the pre-stripping work needed for the move to an open pit. ($1=A$1.15)

Rueters…

McArthur River Mine decision a victory for traditional owners

Northern Land Council (NLC) Chief Executive, Norman Fry, today declared that the judgment of the Northern Territory Court of Appeal in relation to McArthur River Mine was a victory for traditional owners.

“The only reason the Full Bench upheld McArthur River Mine’s appeal was because of the unfair and undemocratic retrospective legislation introduced by Chris Natt, which prevented the Court from considering Justice Angel’s decision.” 

“The Court refused to hear McArthur River Mine’s legal arguments. 

“The Full Court recognised the unfairness of the legislation to traditional owners by preserving Justice Angel’s decision that the Northern Territory Government and the mine pay the traditional owners’ legal costs of the court case,” said Mr Fry.

Traditional owners will continue their fight for justice including in Federal Court proceedings which resume on 30 July 2007 in Darwin.

Xstrata appeals against mine expansion ruling

 The owners of the McArthur River mine near Borroloola in the Northern Territory have begun an appeal against a Supreme Court ruling in April, which blocked their expansion plans.

In October 2006 Minister Chris Natt approved an application by Xstrata to convert operations from underground to open cut and divert the McArthur River.

The Supreme Court later upheld legal action by traditional owners ruling the approval process was flawed.

The Northern Territory Government then legislated against that decision allowing the mine’s expansion to go ahead.

Despite this Xstrata is today appealing against the original court decision, which it argues still sets a legal precedent which could affect future mine approvals.

 from the abc…