Federal Court sinks miner's river diversion

THE future of one of the world's biggest zinc mines at Borroloola in the Gulf of Carpentaria is in the balance after Aboriginal landowners succeeded in overturning federal government approval for McArthur River Mining's multi-million-dollar diversion of the pristine McArthur River.

THE future of one of the world's biggest zinc mines at Borroloola in the Gulf of Carpentaria is in the balance after Aboriginal landowners succeeded in overturning federal government approval for McArthur River Mining's multi-million-dollar diversion of the pristine McArthur River.

The Federal Court yesterday upheld an appeal by the traditional landowners, who argued that Howard government environment minister Ian Campbell had falsely claimed to have considered McArthur River Mining's management plan when approving the controversial 5.5km river diversion in October 2006.

In a 2-1 decision, Federal Court judges Michael Moore and Bruce Lander accepted the argument of the Northern Land Council that Mr Campbell had failed to take into account the mining management plan when he approved the open-cut lead and zinc mine. Judge Brian Tamberlin dissented.

McArthur River Mining, which is owned by Swiss mining giant Xstrata Zinc, laid off 200 contractors at its McArthur River mine site last week, blaming the global economic downturn. The company spent $110million converting its underground zinc mine to an open-cut mine, saying it was necessary to ensure the mine's viability over the next 25 years. To convert the mine, it had to divert the McArthur River.

Two large channels are now gouged out of the land alongside the river. Water will begin to flow through the diversion during coming weeks as the monsoonal rains begin. Aboriginal landowners called for the company to immediately fill in the channels to prevent permanent ecological damage. McArthur River Mining yesterday stopped all mining and civil works at the mine and issued a statement expressing disappointment with the court result. "McArthur River Mining will carefully consider the judgment over the coming days and make no further comment in the interim," the statement said.

The company has previously said it would close the lead and zinc mine if the river diversion were ruled invalid. It now has two ways forward -- it either appeals to the High Court, or lodges a fresh application for the mine's approval with federal Environment Minister Peter Garrett.

Aboriginal leaders wept on the steps of the Supreme Court in Darwin yesterday as they welcomed the decision.

Traditional owner Jack Green said that all his people had ever wanted was for their river to remain in its original pristine state. The Aboriginal landowners will now seek compensation from either the mining company or the federal and territory governments, or both, for the damage done to the landscape.

"We're glad we've got justice, but the main thing we want is that river," Mr Green said. "It should be put back. The Government should have listened to us in the first place. They never talked to us properly -- they just went and done it."

The Northern Territory Government released a statement, saying it was reviewing the decision "in light of the implications for the Territory".

The decision against Mr Campbell's approval of the mine company's plans follows the Howard government minister's failed attempt to use the endangered orange-bellied parrot to block a proposed wind farm at Bald Hills in Victoria.