AusGroup, the Singaporean developer behind a controversial Tiwi Islands port that went ahead without environmental approval, has been ordered by the federal environment department to refer the project for assessment.
Loophles in legislation allowed the $130m Port Melville development to proceed without the required environmental impact assessment or approval, it was revealed this week, even though it is in an area of ecological “national significance”.
Amid several days of confusion from Northern Territory government ministers it was variously claimed there was no responsible minister, the port was not technically a port, it was outside development-regulating land borders and it was an upgrade on an existing project.
The government said it was considered a “single purpose” facility and would not trigger port-specific regulations until it began taking third-party customers. But the company has long promoted Port Melville as a supply base for the oil and gas industry, and it was officially recognised as a security regulated port by the federal government last year.
On Wednesday the federal environment minister, Greg Hunt, ordered an urgent investigation into why the project was not referred to his department for approval, something which should happen automatically for a proposal in an ecological area of national significance.
“In a brief telephone conversation with the company late last month, the minister’s office stressed in the strongest possible terms that the company must fully comply with the EPBC [Environment Protection and Biodiversity Conservation] Act and assist the department with their examination of project,” a spokesman told Guardian Australia on Thursday.
“The company was advised to refer the matter for consideration under national environment law to ensure full compliance.”
He said the minister had received updated information on Thursday from the department and instructed it to direct AusGroup to refer the Port Melville project for environmental assessment.
Earlier on Thursday the chief minister, Adam Giles, with later clarification from a spokesman, dismissed the federal investigation and said Hunt’s office was aware of “what’s going on in the Tiwi Islands”. Treasurer Dave Tollner had spoken with a staffer about it as part of a wide-ranging discussion, Guardian Australia was told.
Giles told media AusGroup had fulfilled all requirements and defended the actions of the developer and his government during the process.
He said people had been misled to think it was a significant issue.
The Port Melville development was a “fantastic port facility that is going to build trade and jobs for Tiwi Islander people and set forth a vision for the future that is shared by the majority on the Tiwi Islands who want to have long-lasting opportunity for their children,” he said.
The project went ahead with support from the Tiwi Islands Land Council, which will use it to export woodchips.
“I’m quite confident with the development to date,” Giles said. “Of course we all care about the environment and the threatened species, but I’m quite confident.”
By contrast the NT environment minister Gary Higgins said on Wednesday “loopholes” in legislation had allowed the project to go ahead and left the government with very little it could do to stop it.
He said the legislation had been under review for the past six months and was being fixed.
The $130m development includes a 36-hectare area plus a wharf in waters 12 metres deep, and a 30m-litre tank farm for fuel storage and distribution.
The Port Melville operators have not responded to requests for comment.
