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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-10-13 Daily Xml
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MARATHON RESOURCES

The Hon. M. PARNELL (14:52): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about Marathon Resources.

Leave granted.

The Hon. M. PARNELL: On Saturday, the minister announced that he had offered a brand-new exploration licence over the Arkaroola Wilderness Sanctuary to Marathon Resources, the company that had been suspended from drilling following the discovery of illegally dumped waste and other breaches of its licence. Included in the minister's news release was the following statement:

There are some parts of the Arkaroola area that should never be open to mining.

However, last month, on 9 September, in answer to my question, the minister implied that, until his proposed changes to the Mining Act are passed, another mining company could just automatically step in and take over exploration activities if he did not issue a new licence to Marathon. The minister said:

… if for some reason the licence is not renewed immediately, someone else could apply for a licence over that area. The preliminary advice I have is that the Warden's Court would almost certainly issue another licence over that area. There is no power within the act. One of the amendments that the government will be looking at will address that situation. Certainly, the preliminary advice I have is that, if a licence over a particular area is not renewed, anyone else could apply unless, of course, there is some other means of preventing it.

That answer ignores the fact that there is another means of preventing it under the existing act. The minister already has the power to exempt land from the operation of the Mining Act under section 8(1)(c). In fact, Warren Gorge, in the Flinders Ranges north of Quorn, is already an area reserved from the Mining Act. The official reason on the department's website is 'to prevent further mining in a scenic area'. My questions are:

1. Does the minister accept that he does have the power under the current Mining Act to protect parts of the Arkaroola Wilderness Sanctuary from mineral exploration?

2. Why does the scenic area of Warren Gorge deserve more protection from mining than the truly breathtaking and iconic areas around Arkaroola?

3. Which parts of the Arkaroola area does the minister think should 'never be open to mining', as stated in his news release on Saturday?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:55): The Hon. Mr Parnell put out a press release, totally inaccurate and full of gross dishonesty, and did not refer to the main point I made at the weekend, namely, that the government was developing an environmental management plan for the entire northern Flinders region. We need to understand where the Hon. Mr Parnell is coming from: for a start, he opposes uranium mining, so any excuse that is around he will use. As soon as the Greens have one area closed off, they immediately start campaigning on another, which is fair enough as that is how they work.

The government believes that a much preferable way to proceed is to examine the whole Flinders area and not just Arkaroola, to identify those areas that are of particular iconic value in relation to their geological, environmental or aesthetic significance. The government has been undertaking that exercise in a collaborative effort between the Department for Environment and Heritage and the Department of Primary Industries and Resources. They have been looking at the mineral potential for that region so that in future we can better manage it. As I have indicated in this place on previous occasions, there has been exploration in that region for a century. Uranium was taken out of that region back in 1910 for Madam Curie in her early experiments, and there has been on or off mining and exploration activity since that time.

In future, as has come out of the experience of the past few years, we need to identify those areas of not just Arkaroola but of the whole northern Flinders Ranges which have special value in relation to their geology, tourism value or environmental significance. That exercise has been under way for some months now, and I expect that the Minister for Environment and Heritage will be able to release that information in the fairly near future.

Through continuing the licence Marathon has but keeping on ground and activities under suspension, the government is able to control what happens in that area; in other words, it can restrict any ground disturbing activity at least until two things happen: first, the changes to the Mining Act to which the honourable member referred and which I had indicated in a previous answer; and, secondly, developing this environmental management plan and identifying those areas. The honourable member will have that part of his question answered when that information is released fairly soon. Obviously the government needs to talk to stakeholders involved, which goes beyond just Marathon, as there are a number of other mineral exploration licences over the northern Flinders Ranges and other stakeholders are involved, and the government will discuss it with them before it releases that information for discussion hopefully in the relatively near future.

Given that Marathon's licence expired on Saturday, the government had to make a decision on how it would deal with the situation going forward. Through the extension of a licence but keeping activities suspended, the government has been able to keep control of the situation. Had we not done so—the honourable member read out my previous answer—it would have been possible for any other company to apply for a licence; and, had the government refused and gone to a challenge through the courts, they probably would have been successful.

The difference in relation to Warren Gorge, which the honourable member has raised, is that clearly it is one thing when a licence is not operative to use that part of the act, but I am sure that the courts would take quite a different view if upon renewal the government sought to act on the basis of that implication. I am sure the honourable member as a lawyer would understand that the interpretation would be significantly different had the government sought to set aside some area exempt from mining right at the time that a licence was up for renewal.

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