Issue 14, April - June 2000


Mining and Native Title : time to negotiate

In April,the Challenges of the North Conference in Darwin was told how modern miners can benefit by embracing the realities of Native Title and signing regional agreements with Aboriginal stakeholders.

By Dennis Schulz and Kathryn Thorburn

Introduction | Native Title | Benefits of agreements | Pilbara agreement | In good faith | More information |

Introduction

IN a session entitled ‘Building the North—Cooperation Between Industry and Communities’, Paul Wand outlined his company’s changing approach to mining on Aboriginal lands and lands under Native Title claim and the positive results that have already been achieved. Mr Wand—who recently retired from the Australian wing of Rio Tinto—spoke of the need to develop a cooperative, respectful approach to negotiations with indigenous Australians. The fruit of such efforts are “Regional Agreements”, which facilitate project progress while ensuring that local Aboriginal people benefit from the wealth generated.

Native Title

Rio Tinto’s change of direction came in 1994 when the Commonwealth Native Title Act was passed in Federal Parliament. Rio Tinto decided to begin working directly with Aboriginal groups rather than continually fighting them in court. Mr Wand put forward a corporate policy document which acknowledged Native Title and suggested a way forward for the mining industry in light of ongoing Native Title developments. A Memorandum of Understanding was signed between the company and ATSIC in 1998. The company also formed the Rio Tinto Aboriginal Foundation, which operates independently of the company’s commercial concerns and distributes $1.1 million a year to community-based projects.

Benefits of agreements

Of course, this new stance is not built on altruism. Mining companies stand to benefit significantly from these agreements in terms of guaranteed access to the resource and security of investment, an improved social environment in which they operate and the possibility of developing a local labour force. In combination these factors can add up to a considerable competitive advantage over other mining companies and increased profits to shareholders.

Considering the expenses and delays associated with the courts, voluntary agreements are increasingly seen as the best way to facilitate mining access to land under claim through Native Title. They permit Aboriginal and development interests to come to an agreement before a formal approach is made to government and the National Native Title Tribunal for ratification and title protection under the Native Title Act.

Pilbara agreement

Rio Tinto’s first successful application of this kind occurred in the eastern Pilbara region of Western Australia. In 1997 the company’s iron ore mining subsidiary, Hamersley Iron, concluded the Yandicoogina Land Use Agreement with people of three language groups: the Yinhawangka, Nyiyaparli, and Banyjima. They came together to negotiate with Hamersley and formed the Gumala Aboriginal Corporation. Malacorhinus phase and Gumala Enterprises Pty. Ltd. (GEPL) was formed. GEPL has since entered into three joint ventures and obtained contracts for mine development work. The separate joint ventures are with Hamersley in an earth-moving operation, an equipment hire company and a catering and camp-management company. ATSIC, DEETYA and WA government agencies provided some assistance in business plan development and training.

In good faith

There is plenty of evidence that those who approach Native Title in good faith are getting results, and avoiding confrontation and protracted litigation. Agreements are usually brokered with the relevant Land Councils and have been negotiated in Queensland, in the Northern Territory and in the Kimberley region, where an MOU was signed by a group of mining companies and the Kimberley Land Council. Exploration agreements have also been signed with traditional communities in Arnhem Land and elsewhere on Aboriginal freehold land.

“That’s where companies like us who are there for the long haul, and the Aboriginal people, there for the longer haul, can perhaps work together to negotiate a mutually satisfactory outcome. We can then go together to a government and seek their input and ratification.” says Mr Wand.

But not all endeavours travel a smooth path. Negotiations over Rio Tinto’s massive Century Zinc project between the local Aboriginal people and the Queensland State government were antagonistic and protracted. Nevertheless, the company persisted doggedly, eventually reaching an agreement with all parties before selling the lease to Pasminco.

Other regional arrangements are in the pipeline for Weipa on Cape York Peninsula with Comalco, at Argyle Diamond Mines in the Kimberley region of Western Australia and at Pacific Coal’s Hail Creek mining project in central Queensland. Mr Wand’s message to other miners looking to a future in northern Australia: “Negotiate, negotiate, negotiate.”

Aboriginal Foundation at Rio Tinto
Tel: (03) 9283 3333

Northern Land Council
Tel: (08) 8920 5100
Web: www.ozemail.com.au/~nlc95/


Kimberley Land Council
Tel: (08) 9193 1118


Cape York Land Council
Tel: (07) 4053 9222
Web: www.cylc.org.au