ASIO has been forced to remove 75,000 tonnes of soil from the site of its new headquarters because of bonded asbestos at the former landfill.
The spy agency is building a massive new headquarters at Russell, the home of other defence and espionage organisations.
"The majority of the soil identified for removal, because it contained a small amount of bonded asbestos sheeting, has now been removed from the site," a spokeswoman for the Department of Finance said.
Some asbestos is still on the site.
"The remainder of this material lies under the existing engineering service lines.
"This will be progressively removed as these services are upgraded during the construction works."
The cost of the building, which will also house the secretive Office of National Assessments, has blown out in the past six months.
The total budgeted cost of the building is now $606.2 million, compared with the $460 million announced in the 2006-07 budget, the mid-year economic and fiscal outlook said.
Asbestos from the site has been taken to two locations.
Despite the unexpected find the construction work will not be delayed and the headquarters is still expected to open mid-2012.
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