Mining and Indigenous Mining and Indigenous Communities in the PacificCommunities in the Pacific

BRIAN WYATTBRIAN WYATT

National Native Title CouncilNational Native Title Council

AustraliaAustralia

A Booming Australian EconomyA Booming Australian Economy

General unemployment: 4.2%*General unemployment: 4.2%*High indigenous unemployment: 13%**High indigenous unemployment: 13%**– Down from 30% (1994)Down from 30% (1994)

Mining sector – major indigenous employerMining sector – major indigenous employerInternational Council on Minerals and Metals International Council on Minerals and Metals study (2001)study (2001)– Low long-term indigenous employmentLow long-term indigenous employment

* Unemployment rates correct as at 7 June 2007* Unemployment rates correct as at 7 June 2007** Indigenous unemployment rate obtained from “Overcoming Indigenous ** Indigenous unemployment rate obtained from “Overcoming Indigenous

Disadvantage Report 2007”Disadvantage Report 2007”

AgreementsAgreements

Native Title legislation – 1993Native Title legislation – 1993– problematicproblematic

Legislation amended – 1998Legislation amended – 1998– surge of negotiated agreementssurge of negotiated agreements– Benefits (jobs, training, royalties etc);Benefits (jobs, training, royalties etc);

Positive outcomesPositive outcomes– Negotiation powersNegotiation powers– Land rights claims have validityLand rights claims have validity

Changes by companiesChanges by companies– More respectful on land accessMore respectful on land access– Increased social responsibilityIncreased social responsibility

Why develop Community Why develop Community Relations?Relations?

Timely project development;Timely project development;

Credibility in market placeCredibility in market place– competitive advantage in globally competitive competitive advantage in globally competitive

environmentenvironment

Improved Indigenous relationshipsImproved Indigenous relationships– Trust and lasting long-term relationshipsTrust and lasting long-term relationships– Benefits for shareholders and indigenous Benefits for shareholders and indigenous

peoplepeople

Minerals Council of AustraliaMinerals Council of Australia

Peak body; 85% of Australia’s productionPeak body; 85% of Australia’s production

MoU with Federal Government (May 2005);MoU with Federal Government (May 2005);– Partnership – Government, companies, Partnership – Government, companies,

communitiescommunities– Indigenous employment and training;Indigenous employment and training;– Development of Indigenous business;Development of Indigenous business;– Local negotiationsLocal negotiations

Fortescue Metals Group (FMG)Fortescue Metals Group (FMG)

Pilbara (Western Australia)Pilbara (Western Australia)

$A2 billion project$A2 billion project– Mine, rail line and portMine, rail line and port

45 million tonnes / year45 million tonnes / year

Commitment to local employmentCommitment to local employment– Currently 78 indigenous employeesCurrently 78 indigenous employees– 435 job applicants435 job applicants– Full range of job skillsFull range of job skills

FMG (cont’d)FMG (cont’d)

RAIL LINE DEVELOPMENTRAIL LINE DEVELOPMENT

Extensive heritage surveysExtensive heritage surveys– Indigenous Protected Area (rock art engravings etc.)Indigenous Protected Area (rock art engravings etc.)

Ministerial consent requiredMinisterial consent required

Negotiated outcome with traditional land ownersNegotiated outcome with traditional land owners– Financial paymentsFinancial payments– Employment and trainingEmployment and training– salvage of Aboriginal cultural materialssalvage of Aboriginal cultural materials

Burrup Rock ArtBurrup Rock Art

Remote Pilbara region Remote Pilbara region

Hugely significantHugely significant– Carvings and paintings, Carvings and paintings,

thousands of years oldthousands of years old– Flying Foam Massacre (1868)Flying Foam Massacre (1868)

National Heritage ListingNational Heritage Listing– Decision imminentDecision imminent– Listing won’t stop projects with Listing won’t stop projects with

existing State approvalexisting State approval– State Government to welcome State Government to welcome

listing listing

Burrup Rock Art (cont’d)Burrup Rock Art (cont’d)INDUSTRY ALONGSIDE INDUSTRY ALONGSIDE

CULTURAL SITESCULTURAL SITES

Special agreement reachedSpecial agreement reached– Negotiated by GovernmentNegotiated by Government– Native Title ‘claim’ gave people the Native Title ‘claim’ gave people the

right to demand negotiationsright to demand negotiations

Benefits negotiated, in return for Benefits negotiated, in return for surrender of native titlesurrender of native title– Freehold titleFreehold title– Land leased to State for 99 yearsLand leased to State for 99 years– Role in future managementRole in future management– Cultural centre ($5.5m)Cultural centre ($5.5m)– Financial compensation ($5.8m)Financial compensation ($5.8m)– Jobs, training, contractingJobs, training, contracting

Burrup Rock Art (cont’d)Burrup Rock Art (cont’d)

FUTURE MANAGEMENTFUTURE MANAGEMENT

Gas plant construction Gas plant construction commended 2005 ($10b)commended 2005 ($10b)– 2 leases granted by Government2 leases granted by Government– Half of 940 engravings affectedHalf of 940 engravings affected

Heritage surveys completedHeritage surveys completed

3-part strategy3-part strategy1.1. conserve in situ; conserve in situ;

2.2. move to a safe place; or move to a safe place; or

3.3. destroy in situ as a last resort. This destroy in situ as a last resort. This would be done in consultation with would be done in consultation with Traditional Owners.Traditional Owners.

Argyle DiamondArgyle DiamondRemote north of Western Remote north of Western AustraliaAustralia

World’s largest supplierWorld’s largest supplier

30 million carats per year30 million carats per year

¼ of world’s natural ¼ of world’s natural diamond productiondiamond production

Primary source of rare pink Primary source of rare pink diamondsdiamonds

800 employees800 employees

Commenced 1985Commenced 1985

600 million carats / year600 million carats / year

Argyle Diamond (cont’d)Argyle Diamond (cont’d)

Participation Agreement with Traditional Participation Agreement with Traditional Owners (September 2004)Owners (September 2004)

Registered as an Indigenous Land Use Registered as an Indigenous Land Use Agreement (April 2005)Agreement (April 2005)– Sanctioned by Commonwealth law (Sanctioned by Commonwealth law (Native Native

Title Act 1993Title Act 1993) ) – Legally binding agreement for all partiesLegally binding agreement for all parties

Argyle Diamond (cont’d)Argyle Diamond (cont’d)ARGYLE PARTICIPATION AGREEMENTARGYLE PARTICIPATION AGREEMENT

Traditional Owners are landlords of the leaseTraditional Owners are landlords of the lease

Company has right to mineCompany has right to mine

Long-term relationship between company and Long-term relationship between company and Traditional OwnersTraditional Owners

Community and social infrastructureCommunity and social infrastructure

$ income stream and trust fund for people$ income stream and trust fund for people

Jobs, training, business opportunitiesJobs, training, business opportunities

Heritage protectionHeritage protection

Indonesia – SidoarjoIndonesia – Sidoarjo

Toxic mudflow leak (May Toxic mudflow leak (May 2006)2006)

Owned by Joint VentureOwned by Joint Venture– Lapindo Brantas (50%)Lapindo Brantas (50%)– Medco Energi Oil and Gas Medco Energi Oil and Gas

(32%)(32%)– Santos (18%)Santos (18%)

Cost cutting suspectedCost cutting suspected

Neighbourhood now Neighbourhood now uninhabitableuninhabitable

Sidoarjo (cont’d)Sidoarjo (cont’d)

‘‘Social and economic disaster’Social and economic disaster’

700 hectares covered700 hectares covered

40,000 people affected40,000 people affected

12,000 homeless12,000 homeless

12 villages buried12 villages buried

1000 jobs lost1000 jobs lost

Livelihoods destroyedLivelihoods destroyed

Sidoarjo (cont’d)Sidoarjo (cont’d)

Presidential DecreePresidential Decree– company to bear all costscompany to bear all costs– Company to buy Company to buy

destroyed propertydestroyed property

only 185 people only 185 people compensatedcompensated– must have evidence of must have evidence of

land ownershipland 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

Timor Sea DisputeTimor Sea DisputeMaritime boundaries/Maritime boundaries/

royaltiesroyalties

E. Timor’s main revenueE. Timor’s main revenue– Royalties could double Royalties could double

GDPGDP

Laminaria-Corallina Laminaria-Corallina oilfieldoilfield– $2 billion to Aust. So far$2 billion to Aust. So far– Timor Gap - East Timor’s Timor Gap - East Timor’s

main source of revenue main source of revenue for next 20 yearsfor next 20 years

Papua New GuineaPapua New Guinea

RAMU NICKEL MINERAMU NICKEL MINE

85% Chinese owned85% Chinese owned

Environmental approval granted 2001 a Environmental approval granted 2001 a Controversial decision:Controversial decision:

Ocean dumping of tailingsOcean dumping of tailings

Affect on marine ecology (Astrolabe Bay)Affect on marine ecology (Astrolabe Bay)

Affect on people’s livelihoods/fish stocksAffect on people’s livelihoods/fish stocks

PNG National Fisheries Authority opposed minePNG National Fisheries Authority opposed mine

Ramu Nickel Mine, PNG (cont’d)Ramu Nickel Mine, PNG (cont’d)

Environmental impacts understatedEnvironmental impacts understated– Toxic tailingsToxic tailings– Unknown toxinsUnknown toxins– Serious impacts on livelihoodsSerious impacts on livelihoods

Motupore Declaration (2003)Motupore Declaration (2003)– Customary rights of landownersCustomary rights of landowners– Effective participation in decision makingEffective participation in decision making– Free prior and informed consentFree prior and informed consent– Right to vetoRight to veto

Future ChallengesFuture Challenges

Land-based developments require:Land-based developments require:– ParticipationParticipation– UnderstandingUnderstanding– RecognitionRecognition

UN Draft Declaration on Human RightsUN Draft Declaration on Human Rights– establishment and maintenance of rightsestablishment and maintenance of rights– Article 11 Article 11

Redress for lost cultural, intellectual, religious and spiritual Redress for lost cultural, intellectual, religious and spiritual propertyproperty

Imperitives:Imperitives:– Full recognition of land rightsFull recognition of land rights– Full consultationFull consultation– Free, prior and informed consentFree, prior and informed consent