Federal Court allows McArthur River diversion for zinc mine expansion

"On June 13 the Federal Court in Darwin, Australia delivered a blow to the spirits of the Gudanji, Yanyuwa, Garrawa and Mara peoples. As many of you know, we have been following the events surrounding the zinc mine expansion and diversion of the McArthur River in the Northern Territory since last year. Now, in a decision that has been awaited since last August, the Court upheld the government's decision to allow Swiss-based Xstrata Corporation to pursue a $110 million mine expansion project at the McArthur. This expansion plan includes a 5.5 kilometer diversion of the river which would allow Xstrata to tap a large deposit of zinc, a mineral which is skyrocketing in value on the world market, in great part due to Chinese demand."

http://www.sacredland.org/weblog/tag/xstrata

"Xstrata is now working on diverting the river by 5.5km as part of a project by McArthur River Mining (MRM) to extend the mine's life by turning it from underground to open cut. About 100 people from four language groups on Wednesday gathered to farewell the sacred sites they say will be destroyed by the project. But police stepped in on behalf of MRM and prevented them from entering the mine site.

"Xstrata has now stopped the traditional owners again when all they want is to hold a ceremony at their sacred sites because those sites may not be there for much longer," said Northern Land Council (NLC) chief executive Kim Hill.

He said MRM and Xstrata could be guilty of an offence under the NT Aboriginal Sacred Sites Act."

http://news.theage.com.au/national/mining-giant-stops-aborigines-ceremony-20080619-2t92.html

"Government documents show the Xstrata mine receives about $100 million in subsidized electricity. The government had hoped that the mine would pay mineral royalties, but it has consistently operated at a loss. Following development of the project, the mining company failed to negotiate an agreement with or pay royalties to the local Aboriginal groups, the traditional owners who possess the land title."

http://www.sacredland.org/world_sites_pages/McArthur.html