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MRM receives Federal consent
MRM RECEIVES FEDERAL CONSENT FOR AUD110 MILLION OPEN PIT MINE
Darwin, 20 October 2006
After McArthur River Mining (MRM) last week received Northern Territory Government approval for its AUD110 million open pit development, Federal Minister for the Environment and Heritage, Senator Ian Campbell, has today given his consent under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).
MRM General Manager Mr Brian Hearne said this is the third and final decision required for the development after previously receiving a favourable recommendation from the Northern Territory Minister for Natural Resources, Environment and the Arts, Marion Scrymgour, and the approval of NT Mines and Energy Minister, Chris Natt.
"Senator Campbell’s consent was the final step in the environmental assessment process and we thank him for this decision," Mr Hearne said.
"The comprehensive assessment of the project has given clarity to the facts that the mine has not polluted the McArthur River or the Gulf environments, the river diversions will be safe, and our plans for the open pit development are sustainable."
The assessment process has also resulted in an increase in the total cost of the development from an initial estimate of AUD66 million to AUD110 million. Of this, AUD10 million was due to modifications required to the river diversion design to incorporate the recommendations of the Northern Territory Government’s independent expert, Professor Wayne Erskine.
The Northern Territory Minister for Mines and Energy, Chris Natt, approved the open pit development on 13 October 2006 after being satisfied that six conditions had been met. These were in relation to a AUD55.5 million security bond, a vegetation management plan, river diversion demonstration, contaminant management, a mine-funded independent environmental monitoring program and a Heads of Agreement for a AUD32 million Community Benefits Package.
The conditions requested by Senator Campbell will be met through the work of the independent environmental monitoring program to be implemented in conjunction with the NT Government.
Mr Hearne said a contract team is already in place on site which can now be mobilised on the preliminary civil works for the open pit development. This team had previously been employed on other approved site works.
The first stage involves the expansion of the existing test pit operations in order to maintain current production levels while work on the full open pit development proceeds under a two year program.
The open pit development was considered a "controlled action" under the EPBC Act due to the presence of one fauna species rated as vulnerable – the freshwater sawfish. The Department of Environment and Heritage was also interested to examine the potential affect of the development on migratory birds.
The MRM Public Environmental Report (PER) lodged in July 2006, contained the results of a survey of freshwater fishes, particularly targeting the freshwater sawfish, undertaken this year by leading national authority, Dr Dean Thorburn.
This study found that from a regional perspective, the upper reaches of the McArthur River are marginal habitats for the freshwater sawfish in comparison to other Gulf rivers. The section of the river to be diverted is used as a route to upstream habitats such as Eight Mile Waterhole but is unlikely to represent a significant refuge habitat for the sawfish.
Dr Thorburn was satisfied that based on the proposed rehabilitation design for the new river channel, adequate passage for fish species would be maintained.
A comprehensive monitoring program will be conducted to monitor fish populations in seasonal and refuge pools and tidal reaches, and fish passage through the diversion.
The NT Environment Protection Agency (EPA) Environmental Assessment Report 54 accepted the conclusion that the development will not have a significant adverse impact on the national status of the freshwater sawfish and supported further studies.
The PER also reported there would be no significant impact on migratory birds around the McArthur River. A survey of migratory birds at and around the Bing Bong loading facility is planned.
ends
For more information
http://www.mcarthurriver.com.au
Project helpline: 1800 211 573
Xstrata contacts
Australia
Joanne Pafumi, Rowland Communication
Telephone +61 (0)7 3229 4499
Mobile +61 (0)411 759 683
Email Joanne.pafumi@rowland.com.au
UK
Claire Divver, Xstrata
Telephone +44 20 7968 2871
Mobile +44 7785 964 340
Email cdivver@xstrata.com
About MRM
McArthur River Mine (MRM) is a zinc-lead mine wholly owned by Xstrata Zinc and located 900 kilometres south-east of Darwin near the Gulf of Carpentaria. It opened in 1995 to mine an ore body which is one of the largest known deposits of zinc and lead in the world. Since then, it has contributed both directly and indirectly around AUD350 million annually to the Northern Territory economy and employed a workforce of 350.
In August 2005, MRM announced its intention to convert the mine from an underground to an open pit operation to enable production to continue. This development would extend the life of mine by at least 25 years. MRM has a measured and indicated ore resource of greater than 120 million tonnes, equating to over 85 years of production at current levels.
The mine faces the prospect of closure however, as underground mining is no longer viable. After 10 years of operation, the most accessible underground ore has been extracted and the underground mining operations, which comprise over 100 kilometres of underground tunnels, have become uneconomical. The development of an open-pit operation is the only way to access MRM’s significant ore reserves and secure the future of the operation.
Growing world demand for zinc, particularly in Asia, and improved refining methods, coupled with reduced operating costs and improved quality of MRM’s bulk concentrate product have supported the decision to inject further investment in the mine.
In August 2005, MRM lodged a draft Environmental Impact Statement (EIS) with the Northern Territory Government for the open pit conversion. In December 2005, an EIS Supplement was submitted responding to around 150 matters raised through a public review process. At the conclusion of the EIS process in February 2006, the NT Minister for Natural Resources, Environment and The Arts, Marion Scrymgour, recommended against the mine proposal. This recommendation was passed to the Minister for Mines and Energy, the Hon Kon Vatskalis, MLA, who in March 2006, referred the matter back to the NT Environment Protection Agency (EPA) for further assessment on nine issues via a Public Environmental Report (PER) process. The PER was lodged in July 2006.
On Monday 28 August, Minister Scrymgour announced her conditional recommendation in favour of the mine development following the EPA’s assessment of the PER.
Since April 2006, MRM’s production has been generated by an approved test pit as underground operations have now ceased.
About Xstrata Zinc
Xstrata Zinc is one of the world’s largest producers of zinc. Around half of all zinc currently consumed is used for galvanizing steel, which is an environmentally friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals.
Xstrata’s zinc and lead operations are located in Australia, Canada, Germany, Spain and the UK. They comprise: the San Juan de Nieva zinc smelter and the Arnao zinc semis plant in Asturias, Spain; the Hinojedo roasting plant in Cantabria, Spain; the Nordenham zinc smelter in northern Germany; the Mount Isa, George Fisher-Hilton and Black Star zinc-lead mines and lead smelter in Queensland, Australia; McArthur River zinc-lead mine in the Northern Territory, Australia; the Northfleet lead refinery located in the UK; the Brunswick zinc-lead mine and lead smelter in New Brunswick, Canada, 25% of the CEZ zinc smelter near Montreal, Canada; 50% of Lennard Shelf zinc lead mine in Western Australia; 75% of Lady Loretta zinc lead deposit in Queensland, Australia; 33.75% of Antamina mine in Peru and the Perseverance zinc deposit in Quebec.