Wik want piece of mining action

THE Wik people may block a Queensland government decision to appoint ­Glencore as the “preferred proponent’’ to mine a massive bauxite deposit.

Bauxite in the hands of an Aurukun leader.

THE Wik people of Cape York may block a Queensland government decision to appoint ­resource giant Glencore as the “preferred proponent’’ to mine a massive bauxite deposit instead of a start-up company part owned by the indigenous community.

Deputy Premier Jeff Seeney announced the government would negotiate with Glencore before granting the state-owned lease on the estimated $20 billion ­deposit near Aurukun, a move backed by Mayor Derek Walpo.

Mr Seeney said a rival bid from Australian Bauxite Development — of which 15 per cent is owned by Wik traditional owners, who also have two board seats — failed to show it had the “technical and financial capacity’’ to develop the mine that has been planned for almost 40 years.

ABD, fronted by chairman and former MIM and Comalco chief executive Nick Stump, dismissed the government assessment yesterday, saying it had well-resourced foreign investors and a plan to quickly develop the mine.

“Our investor base is in mining, barging and shipping and are not without practical experience,’’ Mr Stump said.

“I don’t hold the view that it was always going to go to a major (company).’’

Glencore now has to negotiate with the state government to set a binding work schedule that will also include commitments to provide royalties, jobs and ­training for the local indigenous community.

It will also have to negotiate with traditional owners of the land to secure an indigenous land use agreement. The mine cannot go ahead without securing such an agreement.

Wik woman Gina Castelain, who holds native title over parts of the deposit and is an ABD director, said she would strongly resist Glencore mining the deposit, saying the rival bid was the only chance to radically transform the community. “For the government to make this decision, it’s a kick in the guts,’’ she said.

“This was our golden opportunity to achieve economic ­development.

“We as Wik and Wik Way people believe that sustainable economic development on our country is our pathway out of passive welfare dependency towards social and economic standards that are similar to other Australians; that’s our goal, that’s our vision.”

Mr Walpo, elected mayor in 2012, said he backed the decision to appoint Glencore because he believed the resource giant was the only proponent capable of ­developing the mine.

“I believe Glencore will offer the community more for this community than any other company,’’ he said.

“It will mean the mine will go ahead and this town will boom and we can negotiate for jobs, more businesses, training and education.’’