
Ports and Waterways Minister, Joe Tripodi, said the amount was negotiated by Newcastle Port Corporation after a claim was lodged with Britannia Steam Ship Insurance Association in October last year.
The $1.8 million covers all the costs incurred by the NSW Government during the month-long rescue of the 225m bulk carrier after it grounded at Nobbys Beach on June 8, 2007.
"The rescue effort combined the skills and expertise of a wide range of agencies and personnel," said Tripodi.
The claim covered costs for labour, equipment hire, security, vessel and helicopter hire and services for response personnel. The settlement includes resources used as a precaution against an oil spill under the Marine Pollution Act.
"This settlement covers the costs incurred by NSW taxpayers attributable to the Pasha Bulker incident. The settlement is a good outcome," said Tripodi.
The Minister thanked all those who helped in the response effort.
"This could have been a major environmental disaster. Instead, our state agencies joined forces with Newcastle businesses, volunteers and national response experts to get the job done with no loss of life, serious injury or damage to the environment," said Tripodi.