Howard cites economy in mine push

The Prime Minister says the expansion of the McArthur River Mine, on the Northern Territory's east coast, should go ahead because it will add to the national wealth of the country.

John Howard has defended his decision to send a letter to the NT Chief Minister, Clare Martin, urging her Government to finalise the mine's expansion.

The mine's owner, Xstrata, wants the operation to be turned into an open cut mine.

However, that requires five kilometres of the McArthur River to be diverted.

Mr Howard says if the expansion is given the green light it will provide jobs for local people.

"On top of that it will provide export income for the country," he said.

"If you adopt the attitude that is implicit in the attitude in those who don't want the expansion to go ahead then you are arguing in affect that mining operations are not beneficial for this country."