An 'internationally significant' area for wildlife in the Tiwi Islands has been turned into a deep sea port, despite no official environmental impact assessments, the ABC reports.
While the Territory's Chief Minister welcomes the move, concerns have been expressed about the port's impact on traditional owners and the "internationally significant" environment.
The ABC reported that Ausgroup is currently promoting Port Melville, located in the Tiwi Islands, as a marine supply base for offshore oil and gas industries.
The deep sea port is reportedly near completion, even though an environmental impact assessment has not been made.
Under the Environment Protection and Biodiversity Conservation Act 1999, any projects with a "matter of national environmental significance" must be referred to the government for assessment.
But a Department of the Environment spokeswoman told the ABC, a referral of the Port Melville project has not been made.
A Northern Territory government report has listed the Tiwi Islands as being of "international significance", with many species not recorded anywhere else in the Northern Territory, or in the world. Some 19 animals and 19 plants are listed as threatened at the Northern Territory or national level.
Senator Nova Peris said she has formally asked Environment Minister Greg Hunt to investigate the situation.
"I have specifically requested that the Minister investigate whether the construction breaches the Environmental Protection and Biodiversity Act," said Ms Peris in a statement released Tuesday.
"I have been contacted by concerned residents and traditional owners of the Tiwi Islands regarding the construction and its impact on their waterways and the large number of threatened plant and animal species it supports.
"I also raised these matters with the Minister for Indigenous Affairs, Senator Nigel Scullion, during Estimates in October last year."
The head of the Northern Territory Environment Protection Authority (NTEPA) Dr Bill Freeland said companies can essentially ignore the Northern Territory's Environmental Assessment Act.
"We operate under the Environmental Assessment Act that gives us the power to call in and ask for a notice of intent and that was done," he told ABC radio. "The act does not do any more than that, they can actually ignore it... and that is just the way it is.
"[There are] gross deficiencies in the act which make our job extremely difficult," Dr Freeland said.
"I have no powers to approve or not approve [projects]. We only provide recommendations [to government]."
Dr Freeland said he didn't know if the port was currently operating.
Breaching the EPBC Act can result in penalties of up $5.5 million for companies and seven years' imprisonment for individuals. Under NT environmental law, Ausgroup, the company responsible for Port Melville, will not be facing any fines.
Northern Territory Chief Minister Adam Giles, second from right, with Tiwi islands elder Cyril Kaaippa Rioli as he shakes hands with Port Melville chairman Andrew Tipungwuti on Melville Island, March 5, 2015. (AAP/Neda Vanovac)
Chief Minister Adam Giles visited the Port Melville construction site on Melville Island in March, praising the partnership between Ausgroup and the Tiwi Land Council.
In a statement, Mr Giles said: "This is a smart decision and a further step in breaking the cycle of welfare dependency. I want to commend the Tiwi Islanders on their vision.
"This agreement will give investors and banks the long-term certainty of land tenure they need in order to commit funds to projects on the Tiwi Islands."
The port is expected to start shipping wood chips to Japan by mid-year. It is required to have an 80 per cent local staff, and is being touted as a good opportunity for job creation and economic growth in the indigenous community.
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