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Xstrata proposal for mining in the tropical McArthur river violates indigenous rights and threatens proposed Marine Protected Area

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Environment Centre Northern Territory

Swiss Mining Giant, Xstrata is proposing to divert over five kilometers of the MacArthur River in the Northern Territory of Australia to enable them to operate an open cut mine in the river bed.

The river and the river mouth are in the Gulf of Carpentaria, remote and wild country that is homeland of Aboriginal peoples who maintain strong traditional connections to their country and who rely upon the river and the adjoining coast for livelihood and food. The communities in the coastal zone have already noticed sickness in dugongs and turtles downstream of the mining operation, and fear that these problems will greatly increase.  The project to mine in the river was initially rejected by the Northern Territory government’s environment minister, but now is set to get the go ahead from the government to proceed.


Aboriginal Concern over the Proposal:

The river and adjoining coastal environment is a major source of food for local Aboriginal people, who maintain strong traditional links to their region and the river, which holds economic, cultural and spiritual significance for various Aboriginal nations.

Yanyuwa Traditional Owner, Stephen Johnston whose country is downstream of the mine in the coastal area has called for support to help stop the proposal.  He wrote to the Enivornment Centre of the Northern Territory:  “The Traditional Owners of the Sir Edward Pellew Islands and the MacArthur River seek your support on the most urgent of matters. I am a Yanyuwa Traditional Owner. My people have fought relentlessly for nearly 3 decades for the return of their island country in the Sir Edward Pellew Group. Just weeks before this landmark event (Xstrata) MacArthur River Mining wants to contaminate our river and our islands with heavy metals and silt.” The Yanyuwa people are strongly opposed to the mine. They fear flooding could result in zinc and cadmium polluting waterways and seagrass beds, as well as affecting turtle and dugong populations. They view the health of their environment as a vital basis for a sustainable basis for the future, with plans for fishing and tourism enterprises, and a well developed proposal for a marine protected area in the coastal zone at the mouth of the river. It could jeapordise the a lucrative game fishing industry which draws around 30,000 people to the area each year.

The Yanyuwa and their neighbors, the Gudanji tribe, say the McArthur River development is fraught with risk, including the danger of the mine's dams being inundated by floodwaters, releasing toxic materials into the environment.

During the annual wet season the McArthur becomes swollen with monsoon rains and discharges into the sea a volume of water equal to seven times the capacity of Sydney Harbor.

Another concern among the indigenous populations is a spiritual one. Aborigines worry that the diversion of the river will stir the ancient spirits said to inhabit this timeless landscape of savannah grassland, crocodile-infested swamps and billabongs (ponds).

The Gudanji believe the McArthur River is home to a giant "rainbow serpent" from the ancient Dreamtime era, when mythical beings roamed the continent. Upsetting the river serpent will bring storms, cyclones, and other disasters, they claim.

"People believe that they'll slowly die if that rainbow serpent is disturbed," says Fraser Baker, a Gudanji elder. "If you start messing with it, something bad is going to happen. People think sickness will come down the river. Xstrata has done nothing for our communities, and we don't want the mine to go ahead."Many of the area's traditional owners feel there has been too little consultation about the proposal. 

In 2003, Harry Lansen, a senior traditional owner for the mine site opposed the expansion on ABC television's Stateline program saying "It is no good. I will be sick if they cut the place, because my spirit is there. All my songs are across the river. I don't want to see that thing happen in the McArthur River."

Environmental Significance: 

Long-term impacts on the McArthur River will be associated with the re-routing of the river and construction of artificial watercourses. The McArthur River has high biodiversity, recreation and cultural values. The river contains important species including  listed threatened species, the Freshwater Sawfish (Pristis Microdon), and listed migratory species known to inhabit the river. The river connects to internationally significant coastal and marine environment and endangered dugong and turtle species.  The Borroloola and the Sir Edward Pellow Islands region supports sea turtles and one of the most important dugong populations in the world, and local Aboriginal people have completed a proposal for a marine protected area. The Federal Environment Protection and Biodiversity Conservation Act lists dugongs as a species of national environmental significance and the International Conservation Union (IUCN) lists them as a vulnerable species.

Subsidies and Economics: The existing mine operated by Xstrata has paid no royalties whatsoever to the Northern Territory government, despite operating for 10 years. It has also been exposed that the mine has a 5million dollar energy subsidy provided by the government. Even in a short term economic analysis the benefits of this project are marginal at best.

The Project has already been rejected by the Government Environment Minister:

The proposal to divert the river and open cut mine has already been advised against by the Northern Territories Environmental Protection Agency and was rejected by Northern Territory Environment Minister Marion Scrymgour in February 2006 because of major environmental concerns. The Mines Minister Kon Vatskalis invited the company to come back with a new proposal, however the fatal flaws that make the project unacceptable still exist, including:

·         The diverting of the McArthur River along a 5.5km stretch

·          A massive open cut mine pit in the bed of the river:1.5km long, 750m wide and 220m deep.

·          Leaving the open pit as a void in the river when the mine closes in 25 years time.

·          Inadequate consultation with Aboriginal people living downstream of the mine.

After months of controversy, the firm Xstrata was granted permission by the Northern Territory regional government to go ahead with the lead and zinc mine.

Xstrata's first application to establish the mine was refused by the Northern Territory government in February when an independent report found there was a danger that the stretch of diverted river could overflow its banks during monsoon season. The mine in the middle of the flood plain of a complex and highly seasonal tropical river where floods can be 20 meters high; going right over the tree-tops. Commentators, scientific experts, Aboriginal groups and enviornmentalists share the believe that there is no way that you could protect a mine from the river when it's flooding and four kilometers wide.


For more information, please contact:

Techa Beaumont


Workphone: +61 2 9557 9019
Mobile: +61 409 318 406

Created: 21 Dec 2006 | Last updated: 21 Dec 2006

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