$18k fine as mining company's rule breach sparks frustration
Mining company Roy Hill argues it cannot comply with federal environmental conditions because they conflict with state workplace safety rules.
A multi-billion dollar mining company claims it’s unable to comply with a key federal environment protection regulation because it “conflicts” with a state-issued work health and safety (WHS) rule. Roy Hill Iron Ore was fined $18,780 in December after failing to ensure a “fauna spotter” was present, a licensing condition aimed at reducing wildlife being killed when heavy machinery bulldozes land.
“Following [the] introduction of WA’s new work health safety laws, we no longer allowed our fauna spotters to walk in front of heavy clearing machinery as we considered it inconsistent with West Australia’s new WHS legislation,” Roy Hill’s head of corporate affairs Katherine Savage told Yahoo News.
Australian Conservation Foundation (ACF) accused the company of being “reckless” for failing to comply with the federal law while expanding the mine, arguing it could have “caused the deaths of many rare and threatened animals”.
“Ultimately, it is not Roy Hill’s opinions about its obligations that matter,” ACF campaigner Annica Schoo told Yahoo News.
“Accessing resources in Australia is a privilege, not a right. The Australian public expects big mining companies like Roy Hill to jump through all the necessary hoops in order to protect special wildlife like bilbies for the future.”
Mining company claims environmental regulation is 'complicated'
Roy Hill claims it is "committed" to operating responsibly and meeting environmental regulations. But with its mine located in the Pilbara Region, the company is bound to follow both state and federal laws, which it says can be a challenge.
“This issue is another example of increasing duplication, overlap and even conflict that occurs between federal and state legislative requirements. This includes seven separate pieces of complicated environmental regulation that must be complied with at any one time,” Savage said.
Roy Hill self-reported the breach after attempting to engage with the federal Department of Environment (DCCEEW) about the perceived conflict. “They did not inspect the relevant sites and despite us spending more than a year trying to help them understand our amended obligations under state law, they issued us with a fine,” Savage said.
ACF argues other major projects in Western Australia have demonstrated an ability to comply with both state and federal regulations. “It appears Roy Hill has a unique interpretation of the new WHS legislation given other operators in the area have managed to comply with the spotter catcher conditions with no issues,” Shoo said.
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Which species could be impacted by land clearing?
Analysis of the 27 August, 2022 to 27 August, 2023 audit period by ACF found Roy Hill cleared over 500 hectares of land, including 238.8 hectares of ghost bat habitat and 244 hectares of greater bilby habitat, both of which are federally listed as vulnerable to extinction. ACF also has concerns about the project's impact on Pilbara leaf-nosed bats, Pilbara olive pythons and northern quolls.
According to Roy Hill's independent audit report, it was in March of this period that a change in state WHS legislation triggered a change in Roy Hill's fauna spotting policy. This was after the company received environmental approval under the Commonwealth's Environment Protection and Biodiversity Conservation (EPBC) Act, which includes conditions designed to protect threatened species. Roy Hill is understood to be seeking to change fauna spotting requirements.
Could an $18,780 fine hurt a company with a $3.2 billion profit?
DCCEEW confirmed with Yahoo the fine had been paid. Roy Hill is majority-owned by billionaire magnate Gina Reinhardt’s Hancock Prospecting, and the infringement notice will hardly harm the company’s bottom line.
"The department continues to monitor the approval, and if further non-compliance is identified the department will consider it as per our published compliance policy, " a DCCEEW spokesperson told Yahoo.
ACF believes the case highlights that penalties applied for federal breaches of environment law are “deeply inadequate”, describing the fine as "crumbs in the pocket" of multi-billion dollar companies.
“The point of a fine is to provide a disincentive to companies like Roy Hill, so they think twice before doing something like this,” Shoo said.
“The fine is just over $18,000, and Roy Hill posted a $3.2 billion profit after tax last financial year. So this isn't providing a disincentive.”
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