The operation of the
Pasminco smelter for over a century resulted in
soil contamination of surrounding areas such as
Boolaroo,
Argenton and
Speers Point by lead and other heavy metals. During the last decades of its operation local opposition to the pollution produced by its activities began to develop but was stymied by skillful
public relations which emphasized the economic benefits which accrued to the local community. Following cessation of its operations due to insolvency and appointment of the insolvency practitioner
Ferrier Hodgson as voluntary administrator in September 2001 under the
Corporations Act 2001 there was
environmental remediation of the site of smelter and nearby properties with some buyouts and teardowns; aid in removing 5 centimeters of contaminated soil was extended to 18 adjoining landowners with contamination of 2,500 parts per million or more of lead. (There is no mechanism in Australia analogous to the
Superfund mechanism in the United States). Much of the soil in the surrounding area remains
hazardous waste, however, and could not be deposited in a local
tip. Pasminco was restructured in 2002 by Ferrier Hodgson, its voluntary administrator, as
Zinifex. Zinifex was merged into
OZ Minerals, then purchased by the Chinese state-owned
China Minmetals, which then, with Australian participation, formed
Minerals and Metals Group. The successor in interest to Pasminco has apparently been able to avoid continuing legal liability by virtue of skillful legal structuring of the transaction transferring the interest. As of 2014 a total of $670 million remained in the hands of Ferrier Hodgson, Pasminco's administrator which, on the basis of completion of the cleanup, is slated to be paid to its creditors. ==References==