Existing community relations and engagement activities at McArthur River Mine (MRM) were significantly increased through the implementation of a comprehensive stakeholder engagement framework in 2005, ahead of plans to convert the mine to an open pit. The conversion requires the diversion of a 5.5km section of the seasonal McArthur River and 2.5km of Barney and Surprise Creeks. This framework aimed to provide information, engage in consultation and encourage active participation.

Information was provided through a regular community newsletter, dedicated website, information posters, community hotline and a series of 10 factsheets, responding to specific issues raised by stakeholders.

Consultation took place through a series of meetings with representatives of the Australian Federal and Northern Territory (NT) Government, industry representatives, community organisations including traditional owners, indigenous representative groups and individual community members. The community was also invited to comment on the development proposal through the public review of the Public Environmental Report (PER). Site visits and helicopter trips to the mine were organised, including visits by Gurdanji traditional owners who checked on the status of the sacred sites. Feedback and submissions received were considered within the NT Government’s Assessment Report on the PER and Xstrata Zinc’s Mining Management Plan.

The MRM Community Reference Group (CRG) was established in February 2006 to encourage active participation and a forum for ongoing consultation with local communities. The group comprises a cross section of Aboriginal and non-Aboriginal community representatives, local businesses, and the local council. A tour of a comparable river diversion in the State of Victoria was arranged through the CRG for community members to view first hand how a river diversion can be successfully developed. A participatory, independent environmental monitoring programme has also been established.

Through the engagement programme, a number of concerns about the conversion to an open cut mine were raised by various groups. These include the potential impacts of the river diversion on downstream marine life and freshwater fish migrating to upstream habitats, potential impacts of the loading facilities on migratory birds, tailings storage and management, community engagement, cultural heritage impacts, waste rock storage and environmental monitoring.

Examples of the actions taken to respond to these concerns include:

• modifying the plans for the river diversion and open cut mine plan, at an estimated cost of A$10 million to incorporate recommendations from the NT government’s independent expert;
• significantly increasing environmental monitoring programmes, including a survey of migratory and riparian birds, a fish survey and monitoring to ensure the river diversion allows adequate passage for fish;
• committing to an independent review of MRM’s environmental monitoring programme and publishing results;
• committing to establish a biodiversity offset programme;
• continuing to engage with traditional owners on cultural heritage issues and concerns;
• providing information about the long-term testing of the overburden emplacement facility and modifying its design to avoid disturbing a site of archaeological significance;
• reporting on the design, monthly monitoring and six lines of defence that ensure the integrity of the tailings storage facility; and
• committing to a A$32 million community benefits package for the Borroloola region over the life of the mine.

The conversion to open cut has a good level of support amongst local communities including traditional owners resident in surrounding areas to the mine and has received NT Government approval and Federal Government consent. Unfortunately, some groups remain opposed to the conversion. We will continue to engage with all stakeholders in two-way dialogue to ensure maximum transparency, to proactively seek community input and to continue to respond to issues and concerns raised.

In early 2007, MRM’s community initiatives were recognised with the NT Minerals Council Resource Industry Award of Excellence for Community Relations 2006.