Download Mining and Indigenous Communities

Mining and Indigenous
Communities in the Pacific
BRIAN WYATT
National Native Title Council
Australia
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”
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
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
Minerals Council of Australia
Peak body; 85% of Australia’s production
MoU with Federal Government (May 2005);
– Partnership – Government, companies,
communities
– Indigenous employment and training;
– Development of Indigenous business;
– Local negotiations
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
FMG (cont’d)
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
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 won’t stop projects
with existing State approval
– State Government to welcome
listing
Burrup Rock Art (cont’d)
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
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–
–
–
–
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Freehold title
Land leased to State for 99 years
Role in future management
Cultural centre ($5.5m)
Financial compensation ($5.8m)
Jobs, training, contracting
Burrup Rock Art (cont’d)
FUTURE MANAGEMENT
Gas plant construction
commended 2005 ($10b)
– 2 leases granted by Government
– Half of 940 engravings affected
Heritage surveys completed
3-part strategy
1. conserve in situ;
2. move to a safe place; or
3. destroy in situ as a last resort. This
would be done in consultation with
Traditional Owners.
Argyle Diamond
Remote north of Western
Australia
World’s largest supplier
30 million carats per year
¼ of world’s natural
diamond production
Primary source of rare pink
diamonds
800 employees
Commenced 1985
600 million carats / year
Argyle Diamond (cont’d)
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
Argyle Diamond (cont’d)
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
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
Sidoarjo (cont’d)
‘Social and economic disaster’
700 hectares covered
40,000 people affected
12,000 homeless
12 villages buried
1000 jobs lost
Livelihoods destroyed
Sidoarjo (cont’d)
Presidential Decree
– company to bear all costs
– Company to buy
destroyed property
only 185 people
compensated
People rescue items from an area flooded by
the eruption of a mud volcano. Photograph:
Dimas Ardian/Getty Images. The Guardian,
23/02/07
– must have evidence of
land ownership
Timor Sea Dispute
Maritime boundaries/
royalties
E. Timor’s main revenue
– Royalties could double
GDP
Laminaria-Corallina
oilfield
– $2 billion to Aust. So far
– Timor Gap - East Timor’s
main source of revenue
for next 20 years
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 people’s livelihoods/fish stocks
PNG National Fisheries Authority opposed mine
Ramu Nickel Mine, PNG (cont’d)
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
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