Mining and Indigenous Communities in the Pacific

1
Mining and Indigenous Communities in the Pacific

• BRIAN WYATT
• National Native Title Council
• Australia

2
A Booming Australian Economy

• General unemployment 4.2
• High indigenous unemployment 13
• Down from 30 (1994)
• Mining sector major indigenous employer
• International Council on Minerals and Metals
  study (2001)
• Low long-term indigenous employment
• Unemployment rates correct as at 7 June 2007
• Indigenous unemployment rate obtained from
  Overcoming Indigenous Disadvantage Report 2007

3
Agreements

• Native Title legislation 1993
• problematic
• Legislation amended 1998
• surge of negotiated agreements
• Benefits (jobs, training, royalties etc)
• Positive outcomes
• Negotiation powers
• Land rights claims have validity
• Changes by companies
• More respectful on land access
• Increased social responsibility

4
Why develop Community Relations?

• Timely project development
• Credibility in market place
• competitive advantage in globally competitive
  environment
• Improved Indigenous relationships
• Trust and lasting long-term relationships
• Benefits for shareholders and indigenous people

5
Minerals Council of Australia

• Peak body 85 of Australias production
• MoU with Federal Government (May 2005)
• Partnership Government, companies, communities
• Indigenous employment and training
• Development of Indigenous business
• Local negotiations

6
Fortescue Metals Group (FMG)

• Pilbara (Western Australia)
• A2 billion project
• Mine, rail line and port
• 45 million tonnes / year
• Commitment to local employment
• Currently 78 indigenous employees
• 435 job applicants
• Full range of job skills

7
FMG (contd)

• RAIL LINE DEVELOPMENT
• Extensive heritage surveys
• Indigenous Protected Area (rock art engravings
  etc.)
• Ministerial consent required
• Negotiated outcome with traditional land owners
• Financial payments
• Employment and training
• salvage of Aboriginal cultural materials

8
Burrup Rock Art

• Remote Pilbara region
• Hugely significant
• Carvings and paintings, thousands of years old
• Flying Foam Massacre (1868)
• National Heritage Listing
• Decision imminent
• Listing wont stop projects with existing State
  approval
• State Government to welcome listing

9
Burrup Rock Art (contd)

• INDUSTRY ALONGSIDE CULTURAL SITES
• Special agreement reached
• Negotiated by Government
• Native Title claim gave people the right to
  demand negotiations
• Benefits negotiated, in return for surrender of
  native title
• Freehold title
• Land leased to State for 99 years
• Role in future management
• Cultural centre (5.5m)
• Financial compensation (5.8m)
• Jobs, training, contracting

10
Burrup Rock Art (contd)

• FUTURE MANAGEMENT
• Gas plant construction commended 2005 (10b)
• 2 leases granted by Government
• Half of 940 engravings affected
• Heritage surveys completed
• 3-part strategy
• conserve in situ
• move to a safe place or
• destroy in situ as a last resort. This would be
  done in consultation with Traditional Owners.

11
Argyle Diamond

• Remote north of Western Australia
• Worlds largest supplier
• 30 million carats per year
• ¼ of worlds natural diamond production
• Primary source of rare pink diamonds
• 800 employees
• Commenced 1985
• 600 million carats / year

12
Argyle Diamond (contd)

• Participation Agreement with Traditional Owners
  (September 2004)
• Registered as an Indigenous Land Use Agreement
  (April 2005)
• Sanctioned by Commonwealth law (Native Title Act
  1993)
• Legally binding agreement for all parties

13
Argyle Diamond (contd)

• ARGYLE PARTICIPATION AGREEMENT
• Traditional Owners are landlords of the lease
• Company has right to mine
• Long-term relationship between company and
  Traditional Owners
• Community and social infrastructure
• income stream and trust fund for people
• Jobs, training, business opportunities
• Heritage protection

14
Indonesia Sidoarjo

• Toxic mudflow leak (May 2006)
• Owned by Joint Venture
• Lapindo Brantas (50)
• Medco Energi Oil and Gas (32)
• Santos (18)
• Cost cutting suspected
• Neighbourhood now uninhabitable

15
Sidoarjo (contd)

• Social and economic disaster
• 700 hectares covered
• 40,000 people affected
• 12,000 homeless
• 12 villages buried
• 1000 jobs lost
• Livelihoods destroyed

16
Sidoarjo (contd)

• Presidential Decree
• company to bear all costs
• Company to buy destroyed property
• only 185 people compensated
• must have evidence of land ownership

People rescue items from an area flooded by the
eruption of a mud volcano. Photograph Dimas
Ardian/Getty Images. The Guardian, 23/02/07
17
Timor Sea Dispute

• Maritime boundaries/
• royalties
• E. Timors main revenue
• Royalties could double GDP
• Laminaria-Corallina oilfield
• 2 billion to Aust. So far
• Timor Gap - East Timors main source of revenue
  for next 20 years

18
Papua New Guinea

• RAMU NICKEL MINE
• 85 Chinese owned
• Environmental approval granted 2001 a
  Controversial decision
• Ocean dumping of tailings
• Affect on marine ecology (Astrolabe Bay)
• Affect on peoples livelihoods/fish stocks
• PNG National Fisheries Authority opposed mine

19
Ramu Nickel Mine, PNG (contd)

• Environmental impacts understated
• Toxic tailings
• Unknown toxins
• Serious impacts on livelihoods
• Motupore Declaration (2003)
• Customary rights of landowners
• Effective participation in decision making
• Free prior and informed consent
• Right to veto

20
Future Challenges

• Land-based developments require
• Participation
• Understanding
• Recognition
• UN Draft Declaration on Human Rights
• establishment and maintenance of rights
• Article 11
• Redress for lost cultural, intellectual,
  religious and spiritual property
• Imperitives
• Full recognition of land rights
• Full consultation
• Free, prior and informed consent