AusGroup in NT port probe

The Federal Government is looking into a $130 million AusGroup port redevelopment project in the Northern Territory amid claims its environmental impact has not been assessed.

Environment Minister Greg Hunt yesterday ordered an urgent investigation into the Melville Island project to see if it had breached Federal laws.

Perth-based AusGroup assumed control of the port, fuel storage and marine supply base last year under a $S48 million ($46 million) acquisition of the Australian businesses of Singapore's Ezion Holdings.

The expanded facility is expected to open in July.

AusGroup managing director Gerard Hutchinson said his company and Ezion before ownership changed hands had sought to comply with Federal and NT Government regulations.

"It's not a greenfields site, it's a redevelopment of an approved site," Mr Hutchinson said.

"We have been working with the Northern Territory EPA and the Department of Environment in Canberra over extended periods. It's a very important economic development both for the Northern Territory and for the Tiwi Islanders."

A spokeswoman for Mr Hunt said the Environment Department was examining information to determine if the construction had or would breach the Environment Protection and Biodiversity Conservation Act.

"Failure to comply with the Act can result in civil penalties of up to $8.5 million and criminal penalties of up to seven years imprisonment," she said.

NT Environment Minister Gary Higgins said the independent NT Environment Protection Authority was seeking further information from AusGroup.

However, NTEPA chairman Bill Freeland told ABC Radio the authority had been waiting 12 months for requested information from AusGroup.

AusGroup has promoted Port Melville as the only gazetted natural deepwater international port in northern Australia, with capacity to serve as a supply base for oil and gas clients in the region.

'It's not a greenfields site, it's a redevelopment of an approved site.'" AusGroup managing director *Gerard Hutchinson *