Mining
McArthur River mine is a lead and zinc mine operated by McArthur River Mining, which was formerly owned by Mount Isa Mines but was bought by the Swiss company Xstrata in 2003. The mine is located in the gulf country of the Northern Territory around 60 kilometres from the township of Borroloola.
Existing minesite during flood
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.Mount Isa Mines announced their intention to expand the McArthur River Mine 11th February 2003. Until recently the mine was an underground operation with the orebody underneath the McArthur River. The expansion involves the conversion of the mine to an open-cut mine in the current location of the McArthur River. Under the proposal the McArthur River would be diverted through a 5.5 kilometre channel and requires the construction of a 25m metre high bund wall around the open cut pit.
Mining Approval – On Friday 13th October 2006, the Minister for Mines and Energy for the Northern Territory approved the McArthur River open-cut mine. One week later on Friday, 20th October 2006, the Minister for Environment from the Australian Government approved the McArthur River Mine under the EPBC Act 1999.
Indigenous consultation, Xstrata style – The most disturbing aspect of the McArthur River expansion proposal is the contemptuous way in which the local community, both black and white, continues to be treated by this arrogant company, in defiance of the warning contained in section 4.13 of EPA Report 51 of February 2006 Xstrata was placed on notice regarding “a perception that inappropriate consultation is still occurring”, and was told to ensure that “any future consultation will be undertaken through the most appropriate mechanisms to maximise transparency and accountability to stakeholders … [and which] will not isolate the various groups”.
This was one of the nine grounds on which the proposal was disallowed by Marion Scrymgour, Minister for Environment and Heritage, on 23 February. Since then, Xstrata’s consultation process has deteriorated to the point where it is worse than ever before, and virtually now non-existent. The most senior and respected members of all four Aboriginal clans reject Xstrata’s consultation methods, and have sought to be properly consulted, unfortunately, both Xstrata and the NT Government have failed to address their concerns.
In October 2005 the four language groups at Borroloola formed an Aboriginal liaison committee to work with Xstrata. Known as the Borroloola Traditional Owners Group, its members were appointed after extensive consultations between all four local language groups and were authorised to liaise with MRM in respect of the proposed mine expansion. But Xstrata refused to work with these community representatives. The Chief Minister was informed of this unsavory state of affairs in a letter dated 5 May 2006 from Mr Tony Jack, from the Robinson River community. Mr Jack’s letter stated that Xstrata was dismissive of this organisation, saying the group could “talk to a tree for all they cared”.
Whats next – At this point in time very little information has been released to the public about the mine expansion and river diversion. The Northern Territory Government has consistently maintained they are unable to release the information and the mining company refuses too. What we do know, is that the expansion to the mine pit has started, but there are environmental conditions that have to be met before the river is diverted. Based on Xstrata information we now expect the canal to be dug over the 2007 dry season, April-October and the river to be diverted in at the beginning of the 2008 wet season, December 2008.
Environmental concerns about the mining proposal – There are many environmental concerns about Xstrata mining proposal, the ECNT is strongly of the view that the McArthur River Mine Open Cut Project does not meet acceptable environmental standards and that the project should not have been approved. 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.Permanently altering the channel of such an important Top End river is unacceptable. Excavating a large open pit right on top of the river, involving the removal and relocation of millions of tonnes of rock waste, a significant proportion of which has the potential to contribute to an ongoing acid mine drainage problem, is also unacceptable. The ecological footprint of the open cut proposal is considerably larger than the existing operation. It is also clear from the proposal documents that not all of the toxic materials produced at the mine over its life can be contained on-site, or managed in a way that will not lead to substantial environmental degradation.
Additional information can be found in the documents below
Public Environment Report
‘Failed Again’ – ECNT assessment of EPA report 54
Environment Centre NT PER submission
PER – Public Environment Report
Environmental Impact Statement
ECNT – Reasons why the EPA did not approve the EIS
