According to the Northern Land Council (NLC), traditional owners in the Northern Territory are contemplating the need for mine rehabilitation guarantees prior to permitting new mining ventures to commence.
This consideration follows the release of an NLC-commissioned report which indicates that the $6.2 million security bond held by the Northern Territory government for the rehabilitation of the defunct Nathan River Resources mine is insufficient.
While the NT environment department asserts that it possesses adequate funding to restore the site, the NLC is urging a reassessment of how mine bonds are determined by the government.
Indigenous traditional owners in the Northern Territory, frustrated by the lack of financial provisions from failed mining operations for site cleanup, are signaling their intent to negotiate rehabilitation guarantees as a prerequisite for the approval of new mining projects.
Yuseph Deen, the CEO of the NLC, expressed the dismay of traditional owners upon learning that the government was holding a $6.2 million rehabilitation security bond from Nathan River Resources, a company that entered receivership while owing $360 million in May.
Deen noted that a report commissioned by the NLC indicated that the existing bond amount would be “grossly inadequate” for effective mine rehabilitation.
“Most of the abandoned mining sites are located on Aboriginal estates, resulting in significant losses for Aboriginal landowners,” he stated.
He further elaborated on the implications of a mining company going into receivership, highlighting both economic losses and the potential damage to cultural sites. “The assessment of mining bonds needs substantial improvement to better reflect the financial responsibilities tied to such operations,” he added.
The ABC has reviewed the NLC-commissioned report on the Nathan River Resources mine, which estimates the cost of rehabilitation to range from $108 million to $1.1 billion.
Prepared by the Darwin-based consultancy EcOz, the report utilized mine security calculators from both the NT and NSW governments to estimate the costs associated with either securing the site while leaving waste rock dumps and mine pits intact, or achieving complete rehabilitation of the mine and its associated infrastructure.
The report presented varying cost estimates for both scenarios, suggesting that simply making the site safe while retaining the waste dumps and pits would cost between $108 million and $295 million, whereas total rehabilitation could range from $402 million to $1.1 billion.
“The security held by the Northern Territory government is drastically lower than even the most minimal cost estimates for the necessary work, which is unlikely to meet landowner expectations and will require ongoing monitoring and maintenance,” the report stated.
Earlier this year, concerns were raised by David Hayes, an organizer with the NT Electrical Trades Union, regarding pollution issues near the mine.
The ABC obtained images purportedly showing polluted waterways close to the mine, taken last year. In response, the NT Department of Lands, Planning and Environment acknowledged that the images were linked to an incident reported to the NT’s pollution hotline in December, which remains under investigation.
More than half of the Northern Territory’s land is owned by Indigenous people.
The report advocates for the NLC to assist traditional owners in embedding their rehabilitation expectations as a condition for future mining operations. “High-level closure objectives should be integrated into agreements between the Northern Land Council and mining companies from the exploration phase,” it recommended.
Deen emphasized the seriousness of the situation, indicating that traditional owners are contemplating making rehabilitation guarantees a standard requirement before allowing new mining activities to begin. “It is essential that additional conditions are included in mining agreements to ensure land rehabilitation,” he stated.
The Department of Lands, Planning, and Environment maintained that the existing bond for Nathan River Resources is sufficient. A spokesperson explained, “The $6.2 million security currently held is the amount calculated as necessary for site remediation and rehabilitation based on the current approved disturbance levels.” The spokesperson also noted that further security payments would be necessary before the company could commence any additional ground-disturbing activities.
It was also mentioned that the responsibility for calculating mine bonds was transferred to the department from the mining department two years ago, and it conducts independent assessments regarding security requirements.
Corinne Unger, a research fellow at the University of Queensland’s Centre for Social Responsibility in Mining, suggested that the Northern Territory could refine its mine bond calculations by involving its treasury department in assessing liabilities, similar to the practices in Queensland. “I recommend that the treasury closely examine how liabilities are accumulating and how financial provisions are being managed,” she advised.
Unger criticized the inconsistent methods employed by Australian states and territories in assessing the risks associated with abandoned mines, describing it as “patchy” and inconsistent over time, although there have been efforts to catch up and enhance understanding of these issues.
