Mine deal refusal puts $1.9m on ice

Traditional owners say $1.9m in royalties was withheld from them over their refusal to sign mining tenure agreements.

Pilbara traditional owners have told a Senate inquiry $1.9m in royalties was withheld from them by Fortescue Metals Group over their refusal to sign mining tenure agreements.

In their address to the inquiry looking into the Juukan Gorge cave destruction, Wintawari ­Guruma Aboriginal Corporation said FMG had been withholding royalty payments since February.

Guruma spokeswoman Joselyn Hicks said the royalties were withheld after the native title body asked for information about FMG’s plans for some mining leases that contained sacred sites.

“We have asked FMG to reconsider their position and they have advised us that they will only pay the royalties when we sign off on the mining leases,” she said.

In response to a question from senator Rachel Siewert, Wintawari Guruma executive director Tony Bevan confirmed the royalty payment was due for payment under existing agreements

“If you don’t do what they want, do they stop paying the money they previously agreed to pay?”, Senator Siewert asked. “Yes,” he said.

The Aboriginal corporation said it had issued six dispute notices in recent years claiming FMG’s noncompliance with their agreement, including unauthorised impacts to sites.

“The dispute notices unfortunately go nowhere,” Mr Bevan said. “There’s no power or disciplinary action or ability to deal with a dispute.”

Wintawari Guruma said 93 per cent of their country was covered by mining tenements, mainly FMG and Rio Tinto, and was one of the most heavily ­explored and minerally prospective locations in Australia.

In a letter to Wintawari Guruma Aboriginal Corporation in January, seen by The Australian, FMG cited its obligation under the land access agreement to sign state deeds that gave FMG certainty of tenure.

The letter states that prior to any mining, Wintawari would be given “multiple opportunities” to provide input into approval processes and mine plans. But the letter notes that “very reluctantly Fortescue will not be making payments due to WGAC under Part B of the LAA (land access agreements) until Fortescue is provided with the requested state deeds”.

In a statement on Tuesday, Fortescue CEO Elizabeth Gaines said the company “has been working closely with Wintawari to assist them in meeting the obligations under the native title agreement”.

She said Fortescue had met with Wintawari on six occasions and worked to avoid and protect areas on Queens Mine, or Weelumurra, identified by Wintawari as being of high cultural significance. “We are committed to open and transparent engagement to facilitate the outstanding royalty payment, in accordance with the contractual agreement and the obligations of both parties,” she said.

Ms Hicks told the inquiry there were no provisions in their agreements with either FMG or Rio Tinto that protected their cultural heritage.

“(Protection) is at the discretion of FMG and Rio Tinto,” she said.