A massive lead and zinc mine at the centre of numerous environmental scandals had a hand in the appointment of its own independent regulator, according to confidential documents obtained by environmentalists.
The revelation is contained in tender documents released to the Environment Centre NT (ECNT) under Freedom of Information laws.
They relate to the appointment of the McArthur River Mine's new independent monitor — an environmental oversight body that assesses the mine and the government department regulating it, the Department of Industry, Tourism and Trade (DITT).
The documents show two representatives from the major mine, about 1,000 kilometres south-east of Darwin, sat alongside government bureaucrats on the seven-person tender assessment panel that selected the mine's new independent monitor in late 2019.
Consulting firm Advisian scored highly on the procurement criteria and was subsequently awarded the work.
However, it was later revealed that the government had changed the scope of the monitoring from an environmental assessment to a compliance audit and accepted a tender that was much cheaper than estimated.
The environment centre's Kirsty Howey said the mine's involvement in the tender process raised questions about the integrity of Advisian's glowing latest report card.
"The crux of the independent monitor report is that the monitor needs to be independent of government, and free of influence from government and the mining company," she said.
"It makes clear that [mine owner] Glencore has influenced that process.
"We think that is extremely concerning and completely at odds with the promise that's been made to Territorians about independent oversight of this mine".
The independent monitor's report is one of the key ways any significant environmental risks are monitored and disclosed to the public, including the waste rock dump that sparked health concerns when it spontaneously combusted in 2013.
The government (DITT) said it did not believe the mine's involvement in the tender selection posed a conflict of interest.
"The tender assessment panel was led by the NT Government, and consisted of representatives from multiple NT Government departments and MRM," she said.
Asked if it requested to be on the committee, a spokeswoman from the mining company said: "The Northern Territory Government has always been responsible for coordinating the tender and appointment of the Independent Monitor".
Report finds high compliance levels
Advisian's latest report, covering the year to April 2021, was released yesterday and found both the mine and the department were highly compliant with their regulatory requirements.
It concluded there were no environmental issues requiring urgent investigation and the McArthur River and its tributaries — a key concern for nearby communities — were in good health.
However, Ms Howey claimed the report had become "light on detail" under the changed scope, and appeared not to include important information like a register of potential significant risks.
"Effectively, what this document has been reduced to is a tick-and-flick exercise which ticks off whether certain regulatory requirements have been met, rather than undertaking a comprehensive risk assessment of what this mine poses," she said.
"There has not been any assessment of risk able to be undertaken by the independent monitor, which means that really the report is worthless."
The report itself said the risk register had not been revised since January 2020 and risk mitigation controls had not been formally reviewed.
The minor compliance issues it identified mainly related to record-keeping, and two of the open-cut mine's largest environmental risks — its waste rock dump and tailings storage facility — received near-perfect compliance scores.
While concluding fish in the region were safe to eat, the report said metals above safe levels were detected in two fish species in a creek within the mining lease boundary.
However, it said there was only an "extremely low risk" to human health from consuming fish in the area.
The mine's acting general manager, Adam Hatfield, has welcomed the report.
"The Independent Monitor's positive findings about our environmental performance and the continued good health of the McArthur River are a testament to the ongoing progress we've made in recent years," he wrote in a statement.
The ABC has previously revealed that the department sought a lower environmental security bond for the mine than the one the company itself calculated, raising questions about the relationship between the mine and the department regulating it.
The department also approved a change to the mine while the government was in caretaker mode.
The mine said it directly employs about 1,200 people and contributed $600 million to the economy last year.
