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An aerial view of a river system in Australia's Northern Territory November 23, 2014. The Arnhem Land reserve, closer to Bali than Sydney, covers an area of around 97,000 sq kms (37,000 sq miles), has a population of around 16,000 and access for non-Aborigines is by invitation only. Australia's aborigines are the custodians of the longest unbroken cultural tradition on earth, having migrated Down Under from Africa via Asia between 40,000 and 60,000 years ago, and connection to the land is practically written into their DNA. Reuters/David Gray

Drilling holes without authorisation on a cattle station located at a remote part of the Northern Territory has cost Krucible Metals AU$300,000 after being convicted of the offence in Darwin Magistrates Court on Tuesday. In August, the company pleaded guilty for going ahead with drilling 20 holes without an approved mining plan from the NT Department of Mines on the Tobermorey Station.

However, Chief Magistrate John Lowndes dismissed speculations that the members of the current board members would suffer the brunt, saying that the impact of the sentence will be minimal on them. The company has removed its former Board and Managing director, Allan Branch, last December.

As the ABC news reported, for an offence of this sort, the penalty can go up to AU$ 3.75 million. But according to Lowndes, the offence isn’t as serious as to warrant a penalty as high. However, he supported the need for conviction and fine to prevent companies from committing such offences.

Alistair Wyvill SC argued that the company was misguided under the leadership of Branch, who directed it to disregard the law. Lowndes accepted the argument remarking, "The managing director managed to hoodwink the company."

Lowndes also noted that even though the current board of the company is not responsible for the violation, it is the company nonetheless that is involved in the issue. "There was an apparent lack of compliance systems to prevent this corporate offence," he said. "The [previous] board does not seem to have been effective in ensuring compliance."

He appreciated the co-operation of the company through its new board and recognised the company’s efforts to rehabilitate the site. The company has spent reasonably on consultant fees, legal costs and around AU$100 million for the rehabilitation of the site.

Even though Department of Mines lawyer Martin Fisher told the court that the department has no plans to prosecute Branch, Krucible Metals still agreed to provide all sorts of assistance in case it decides otherwise.

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