The mining bonanza and the mystery millions

A trustee company that controls tens of millions of dollars worth of Indigenous mining royalties is being paid more than $1 million a year for unexplained administration costs despite many native titleholders not seeing any money for more than three years.

Secrecy surrounding the millions has raised new concerns among Adnyamathanha native titleholders, who have for years questioned where their money has gone and how royalties generated from lucrative uranium mining agreements in and around South Australia’s Flinders Ranges are distributed.

Adnyamathanha native titleholders have questioned where tens of millions of dollars’ worth of royalties generated from lucrative uranium mining agreements in and around the Flinders Ranges in South Australia have gone.Credit: Heathgate Resources

The company, Rangelea Holdings Pty Ltd, has been locked in a legal battle over the royalties since 2021, when payments were suspended after community members raised fears that tens of millions of dollars had been squandered.

But since then, Rangelea has received more than $3 million for administration costs, which the company claims include distributing royalties and contributions to a funeral fund, and refused to explain expenses to community members.

“It’s the Adnyamathanha people’s money,” Adnyamathanha elder Tiger McKenzie told this masthead.

“We’ve been asking for those financials for a long time and they won’t show us.”

Adnyamathanha elder Tiger McKenzie has pushed for Rangelea to make its finances public for years.Credit: Tom Hancock

Rangelea disputes the amount of royalties suspected of flowing through the Adnyamathanha Master Trust it has controlled for years, claiming it is paid about $3.6 million annually from uranium miner US-owned Heathgate Resources.

However, more than $22 million in royalties has been paid since September 3, 2021, with almost $19 million sitting in a South Australian Supreme Court-controlled bank account as of July 31 this year.

It is unknown when distributions were last paid to native titleholders, but several have not received any money since at least mid-2021.

Rangelea, an Indigenous-run company, was set up to manage mining income for South Australia’s Adnyamathanha native titleholders, who number about 3000.

Some of those have received sporadic payments of varying amounts, while others report receiving nothing. Even now, many are unaware of the scale of the royalties.

The resources industry is closely watching the case, which has nationwide implications because of the number of Indigenous corporations in receipt of mining royalties.

Under the mining agreement, Adnyamathanha native titleholders are entitled to equal shares of the royalties for the use of their ancestral lands.

South Australia’s Supreme Court granted Rangelea access to 15 per cent royalties paid each year to cover its running costs after the payments were suspended in 2021, but some native titleholders say they have no idea what the money has been spent on.

South Australia’s Chief Justice Chris Kourakis then ruled in April 2023 that three Adnyamathanha common law holders could inspect Rangelea’s financial records. Rangelea has appealed against the judgment, with the Court of Appeal yet to hand down its decision.

Rangelea director and former Adnyamathanha Traditional Lands Association chair Vince Coulthard has led the company’s appeal to keep its books closed.Credit: Lincoln Rothall

Until July 2019, Vince Coulthard, one of Rangelea’s eight directors, ran Rangelea and the Adnyamathanha Traditional Lands Association (ATLA), the native title body representing Adnyamathanha people entitled to the uranium royalties.

In March 2020, the Office of the Registrar of Indigenous Corporations (ORIC), placed ATLA into administration after an audit revealed governance issues and a lack of record keeping of meetings, memberships and spending. Coulthard stepped down from his role as ATLA boss four months before the audit.

When contacted by this masthead, Coulthard refused to answer questions about what the millions had been spent on since 2021, or Rangelea’s costs.

“It’s a private company,” said Coulthard, who has pushed to keep Rangelea’s financial records secret.

Rangelea operates independently of ATLA and therefore beyond the reach of the regulator ORIC.

But ORIC chief Tricia Stroud said Adnyamathanha people had a right to know how their money was being spent.

“Native titleholders should rightfully expect to always understand how their native title moneys are being managed, regardless of the trust structure they have chosen,” Stroud said.

Likewise, ATLA special administrator Peter McQuoid said he would keep pursuing answers.

“I will not give in on this,” he said.

“I’ve made a promise to the Adnyamathanha people that we’ll keep going with this until we have an outcome.”

According to Rangelea’s website, 2908 beneficiaries from eight subgroups – each one headed by one of the company’s directors – receive royalties.

The royalties are paid to each subgroup head, who is then responsible for distributing money to members.

But Rangelea has never produced a public list of all beneficiaries, meaning how much each person should be paid, or who should be paid at all, cannot be determined.

Coulthard controls Rangelea’s biggest beneficiary subgroup, claimed to number 1762.

“It’s to do with me and them,” Coulthard said of reporting spending to his subgroup.

McKenzie is one of many Adnyamathanha native titleholders eagerly awaiting the outcome of the appeal, reserved for decision since last October, and has called for a forensic investigation into Rangelea’s financials.

“We want to make them accountable,” he said.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.