Borroloola challenge to NT Mining Ministers $119m slashing of Glencore McArthur River Mine security bond
A mine will have to be monitored for 1000 years for spontaneously combusting waste, floodings and toxic material leaching into water, a court has heard.
Indigenous Affairs
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If a multinational mining company walks away from a Territory mine rehabilitation at any point in the next 1000 years, it could risk “catastrophic” environmental damage, a court has heard.
Gudanji Traditional Owner Josephine Davey Green and Garawa Elder Jack Green have taken the Territory’s Mining Minister Nicole Manison to the Supreme Court over her decision to slash a multimillion-dollar mining security bond for the McArthur River Mine.
The Borroloola residents, along with the Environment Centre NT, were represented by the Environmental Defenders Office in the two-day hearing on Thursday.
Justice Judith Kelly heard that despite the risk period from thelead, zinc and silver mine lasting a century, Ms Manison approved a security bond of just $400m.
Environmental Defender Office barrister Oliver Jones told Justice Kelly the approved security bond was insufficient to rehabilitate the mine if its owner Glencore decided to abandon it.
In November 2020, Ms Mansion approved changes to the mining management plan for Glencore’s McArthur River Mine, just 60km from the Borroloola community and 910km southeast of Darwin.
This included slashing the security bond by $119m.
The security bond has since been increased to $476m, still well below the initial target of $519m.
Mr Jones said the initial security bond was calculated on the assumption the mine would close at the end of 2020, even though the mine was planned to operate until 2037.
He said post-closure maintenance was planned for 10 years, despite the NT government and Glencore acknowledgingmonitoring of the site was required for up to a century.
“That disturbance is likely to have an effect for — I say 1000 years — but at least 100 years and certainly more than 10 years,” Mr Jones said.
“If that sounds extreme, it’s because of the extreme environmental damage of this mine.”
Justice Kelly appeared to raise scepticism that Glencore would continue to monitor theinactive and non-profitable mine for the next century.
“It’s what the operator thinks is likely to happen … (Glencore) are very confident in their continued longevity,” Mr Jones said.
“The task … is to try and calculate what it will cost to deal with the consequences of this mine.
“That’s either going to be paid for by the operator, or it’s going to be paid for by the Territory.”
Justice Kelly heard the mine’s eventual closure posed two catastrophic environmental risks, given the scale of waste material and 2008 decisionto redivert 6km of the river around the mine.
Mr Jones said if — but more likely when — the McArthur River reclaimed its original route, the water would flow into the mine pits and interact with the “nasty chemicals” needed in the extraction of lead, silver and zinc.
Mr Jones also said the reclassification of waste by-product of a “reactive, potentially acid releasing rock” led to a “significant underestimation” of the environmental risks.
Mr Jones said in the past the waste product had been improperly stored at McArthur River Mine, leading to dangerous reactions with air and water.
“Exposure of this reactive rock to air and water enabled chemical reactions to occur, resulting in the generation of acidic, metallic and saline drainage and in some areas spontaneous combustion,” he said.
Outside court, Josephine Davey Green said the decision to reduce the environmental bond could impact the McArthur River and affect her people for thousands of years.
“I am hurting so deeply. I worry for my children, and their children.I am fighting for my country,” the Gudanji woman and native title holder said.
“If the mine walks away now, that river will be gone, and so will we.”
Garawa Elder and Traditional Owner in Borroloola Jack Green said his community had been “kept in the dark”.
“We don’t trust the mine to clean up the mess properly. We need the bond to protect the river and our country if something goes wrong,” Mr Green said.
EDO chief executive David Morris said in just 10 yearsGlencore had caused a century of damage to the Gulf of Carpentaria.
“The McArthur River Mine is perhaps the worst case of a local community having to live with the government’s failures, long after the companies and government decision-makers have moved on.”
A McArthur River Mine spokesman said the legal contest did not involve the mine, and was centred on a judicial review of a decision made by the NT department of mining.
“McArthur River Mine complies with all our legal and regulatory obligations and is not party to these proceedings,” he said.
Environment Centre NT director Kirsty Howey said the McArthur River Mine was one of the most toxic mines in Australia, with a sordid history of poor regulation.
But Dr Howey said the underfunding of mining security bonds was a national issue.
Justice Kelly will hear submissions from the NT government when the hearing continues on Friday.
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