Date of offence
Between 07 Nov 2009 and 13 Nov 2009
Type of offence
Dump industrial waste at an unlicensed site, at Morwell from 07.11.09 to 13.11.09, contrary to s.27A(2)(aa)
Background of offence

Mecrus Pty Ltd operated a coal briquette factory in Morwell. In November 2009,  Mecrus Pty Ltd discharged coal sludge into the Morwell Main Drain, which flows into the Morwell Wetlands. The company sub-leased a site on Commercial Rd, which was the original Morwell Power Station. The company produced briquettes for both the export and local commercial market. During manufacture, a filter belt was used to pass dust and excess coal through an extraction system, to a sludge treatment plant. Coal particles were separated from the sludge, which was then used to fuel the power station and the water used in the process was recycled. On the day of the incident, the filter belt failed. The company operated with an EPA licence which required it to discharge sludge to the treatment plant at its briquette factory. The EPA investigation revealed that the company had some warning the filter belt was in need of repair prior to the eventual breakdown.

Remedial action taken by EPA
None
Mecrus Pty Ltd undertook a clean up of the wetlands.
Date of court hearing
16 June 2011
Date of court order
16 June 2011
Court magistrate
Mr B. Clifford
Court location
Latrobe Valley
Reasons for prosecution
In accordance with the  Compliance and Enforcement Policy this matter involved a very high potential risk of environmental harm to highly sensitive marine habitat. This matter also involved a substantial degree of culpability because Mecrus Pty Ltd knew that the filter belt required maintenance and failed to schedule the maintenance in a timely way.

Court orders made

Convicted, ordered pursuant to s.67AC:

  1. To carry out the project specified below for the restoration or enhancement of the environment in a public place or for the public benefit by paying the sum of $75,000 to Gippsland Climate Change Network Inc within 60 days of the date of this Court Order.
  2. The payment must be used solely to carry out the following project:
    Gippsland Climate Change Network Inc (GCCN)
    • Sustainability Fellowship Program.
      The GCCN will support 40 participants from the community, business and Government sectors across Gippsland’s six municipalities to each design a 12 month assignment which addresses regional sustainability issues.  The GCCN will then support the participant to implement their project and, upon completion, conduct presentations to the community to share learnings.  For example an industry participant may identify an industrial process failure which is causing an adverse environmental impact or posing an environmental risk – the Fellowship Program will support the participant to educate managers and operators in the industry to try to address the failure.
  3. Within 7 days of making the payment, the Accused must provide the Solicitor to the Environment Protection Authority with proof of the payment.
  4. The Accused is prohibited from referring to this payment without reference to these proceedings.
  5. Pursuant to section 67AC(2)(a) of the Act, the Accused is ordered to publicise the offence, its consequences and any penalties imposed or orders made by this Court by publishing a notice about these proceedings.
  6. The notice must contain the Accused’s and the Environment Protection Authority’s corporate logos and be:
    • in the wording specified in clause 9 below and must not be supplemented by additional text;
    • published within 30 days of the date of this Court Order in the Editorial section or the front part of the Early General News section of the following newspapers:
      • The Australian Financial Review
      • The Age
      • The Herald Sun,
      • The Latrobe Valley Express, and 
      • of a minimum size of 12cm by 3 columns; and
    • surrounded by a continuous black border.
    • The Accused must provide the Solicitor to the Environment Protection Authority with a copy of each published notice within 7 days of its publication.
    • Within 14 days of the date of this Order, the Accused must post the notice on its website home page (http://www.mecrus.com.au/) and maintain it there for 90 consecutive days. 

[The wording of the notice was specified.]

Costs: $17,500

Reviewed 16 March 2020