Government was seeking at least $120m, while Shenzhen Energy Transport Co Ltd argued reef was self-healing

This article is more than 4 years old

This article is more than 4 years old

The federal government has reached a $39.3m out-of-court settlement with the owners of a Chinese coal carrier that ran aground on the Great Barrier Reef in 2010.

Shenzhen Energy Transport Co Ltd and its insurer had, for six years, refused to accept responsibility for restitution after the 225m long, fully laden Shen Neng 1 ran aground 100km east of Rockhampton at Douglas Shoal.

The environment minister, Josh Frydenberg, said the $39.3m would allow the Great Barrier Reef Marine Park Authority to remove toxic anti-fouling paint and rubble and restore the natural ecological processes of the reef.

Australia seeks $120m for Great Barrier Reef damage from Chinese coal ship Read more

“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,” he said.

The anti-fouling paint at Douglas Shoal contained a highly toxic component known as TBT, which is now banned.

Frydenberg said the clean-up operation was estimated to begin in mid-2017.

The payout is made up of $35m to remove polluted rubble and another $4.3m to cover the costs incurred by the government in the immediate aftermath of the grounding.

The government was seeking at least $120m, while the carrier’s owner argued the reef was self-healing and the company shouldn’t have to pay the bill.

The chairman of the Great Barrier Reef Marine Park Authority, Dr Russell Reichelt, said fixing the damage to the reef was his highest priority in pursuing the claim. But he said it was unsatisfactory that it took more than six years to reach a resolution.

“Our investigation also led to the ships’ master and first officer being convicted of criminal negligence in causing the accident, and resulted in the first officer serving a jail term,” Reichelt said.

“Damage to the Great Barrier Reef caused by such negligence should be made good by the ship owner or their insurer and not left to the Australian taxpayers to fund repairs.”

Greenpeace Australia however criticised the $39.3m settlement as “woefully inadequate”.

“The government has said the full cleanup will cost more than $140m so to settle for such a small figure is disappointing,” Greenpeace campaigner Shani Tager said.

“While we welcome the end of this six-year saga, it has to serve as a reminder that accidents happen. It’s clear that coal and the reef don’t mix and the government needs to do more to protect this precious place.

“Coal port expansions and new coal mines would make a repeat of this accident more likely in future and must be ruled out,” she said.