Chinese Firm to pay $39m after Great Barrier Reef Grounding

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The Chinese owners of a bulk coal carrier that ran aground on the Great Barrier Reef will pay $39.3 million in an out-of-court settlement reached more than six years after the event.

Shenzhen Energy Transport’s 225m-long Shen Neng 1 coal carrier ran aground on Douglas Shoal, 100 km east of Rockhampton, in April 2010, but for more than six years the company and its insurer refused to accept responsibility for the lar­gest known damage caused to the reef by a ship.

The government had been seeking $120 million in remedi­ation costs, or an undertaking from the company to fix the damage, in a Federal Court trial that began earlier this month.

Environment Minister Josh Frydenberg announced on 19 September, 2016 that an out-of-court agreement had instead been reached.

“Our ongoing actions to pursue funds to clean up the pollution sends an unambiguous signal that damage to the Great Barrier Reef World Heritage Area is unacceptable, and that we will use every available means to pursue ship owners who are negligent in causing damage to the reef,” he said.

Mr Frydenberg added that the $39.3m would pay for the clean-up, allowing the Great Barrier Reef Marine Park Authority to remove toxic anti-fouling paint and rubble, and restore the reef.  The paint contains a banned and highly toxic component known as tributyltin, as well as copper and zinc.

Mr Frydenberg warned that it could continue to have a negative impact on marine life and the sea floor for decades if it was not removed.

Strong tidal currents will prevent the clean-up operation from beginning until the middle of next year.

The terms of settlement will see $35m paid to the commonwealth for the cost of ­removing polluted rubble, and $4.3m paid to cover costs incurred by the government in the immediate aftermath of the grounding.

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Source: environment.gov.au