McArthur River decision a blow to all mines
Yesterday’s decision by the Federal Court to uphold an appeal by Traditional Owners throws confusion into an already uncertain market, says the Northern Territory Resources Council.

CEO Scott Perkins says the problem is one of certainty and exposure to the risk of changing decision making processes.

“While not necessarily a matter of sovereign risk” he says, “this ability to have several bites at the cherry adds considerable uncertainty to the mining business.”

“Xstrata has invested hundreds of millions of dollars in developing this mine, all of which is now at risk” he added.

“And it is not only Xstrata. There are many developing mines that are now in danger of an
unpredictable approval process.”

“At a time of rapidly developing crisis in the mining business, the last thing we need is to create more uncertainty in the development process; it is a huge investment disincentive.”

The NTRC is calling on Territory and Federal Governments to work with the industry to develop a more predictable process.

“We need to ensure that these projects, once approved, can go about their business without being in constant danger of reversal of decisions” Perkins says.

“It will be impossible to attract investment unless we build considerable degrees of certainty into operations.”

“We call on all stakeholders to examine this problem closely and to learn from the experience. After all, this means jobs, regional economic development and better services in remote areas.”
“It would be a pity so see this endangered.”

Ends
For further information please call Scott Perkins - 0419759040

Background Information

In regard to the diversion of the McArthur River and expansion of the McArthur River Mine, MRM is the recipient of a decision by the Federal Government made after an exhaustive assessment process. The decision by the Federal Court
arises from some Traditional Owners and the NLC’s contention that the Federal Minister did not consider the application fully.

Thus, the matters decided in Court were issues between the Traditional Owners and the Federal Government.