WASHINGTON: Environmentalists have suffered a setback in their campaign to restrict development on the Tiwi Islands north of Darwin, after the federal government ruled that the $140 million expansion of Port Melville marine supply base does not require federal oversight after all. The decision means the project is likely to be completed without any environmental impact assessment because the Northern Territory government has already given its approval. Port Melville also did not need planning permission because it is on Aboriginal land. Green groups had challenged Canberra’s original decision that the works could go ahead without federal regulation if undertaken “in a particular manner”.
The original plans included building 30 million litres of diesel storage and a 100-man workers’ camp in pristine threatened-species habitat, and making allowances for close to 500 ship visits per year excluding pilot boats. The base is intended to service the oil and gas industry. The federal government admitted earlier this year that it had made an error in its original decision, causing the project to be reassessed.
There were fears doing so could trigger further financial woes for AusGroup, had already offered up Port Melville as security in a deal with creditors to resolve a breach of debt covenants, on its way to reporting an expected $193 million annual loss. But the company announced to the Singapore stock exchange today that federal Environment and Energy Minister Josh Frydenberg’s delegate had decided Port Melville was “not a controlled action under the Environmental Protection and Biodiversity Conservation Act 1999”. “This means that the proposed action does not require further assessment and approval under the EPBC Act before it can proceed,” AusGroup said.
“Ezion Offshore Logistics Hub (Tiwi) Pty Ltd, a wholly owned subsidiary of the company (AusGroup), is therefore approved ‘To operate a marine supply base at Port Melville, Melville Island, Northern Territory, for the shipment of equipment and supplies for projects such as the construction and operation of offshore oil and gas fields, up to a maximum of 233 vessel berths at Port Melville per annum (including pilot vessels)’.” Managing director Eng Chiaw Koon said the decision would allow AusGroup to expand Port Melville beyond the woodchip export business it has undertaken to date.
