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Mining-Indigenous Agreement Making A Global Context

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  1. Negotiating Settlements: Indigenous people, settler states and the significance of treaties and agreements Mining-Indigenous Agreement Making A Global Context Bruce Harvey Chief Adviser Aboriginal & Community Relations Neville Tiffen Chief Counsel Rio Tinto Australia

  2. Presentation Overview • Rio Tinto • Mining Industry – Indigenous Relations • 1970’s –1980’s • Paradigm Shift • 1990’s • Western Cape Communities Co-existence Agreement • a ‘rights-based’ agreement on Cape York • Globalisation • an analysis of the global context

  3. Rio Tinto - Location of Operations Zinc Diamonds Aluminium Talc Zinc, silver and gold Coal TiO2 / Iron Iron Ore Talc Talc Gold Coal Copper / Tin Borates Gold Copper / Gold / Silver / Molybdenum Copper / Gold Coal Gold Gold Uranium Bauxite Gold Diamonds Coal Alumina Aluminium Iron ore Gold Salt Uranium Nickel Coal Iron ore Copper Copper Talc Coal Gold Copper/ gold Aluminium TiO2 Copper/gold Aluminium Borates

  4. Assets at end 2001 - US$13 billion Canada 15% Europe 3% USA 25% Indonesia 4% Australia &NZ 45% Africa 3% S America 5% Rio Tinto - Spread of Assets

  5. Darwin Comalco Weipa Rio Operation ERA RTE Tenement Dampier Salt Private Lands Argyle Diamonds Pastoral Leases National Parks Hamersley Iron CAP Robe Aboriginal Land Pacific Coal Native Title Claim Three Springs Coal & Allied Perth Peake North Parkes Bell Bay Australian Operations & Land Status 500km NWA99005.ppt 02-11-1999

  6. Mining Industry Solidarity 20 years Land Rights Experience : NT/SA No recognition of Aboriginal rights Stonewalling on Native Title Emphasis on legislation & litigation Chronic lack of exploration access : NT/SA Emerging scenario elsewhere Mining Industry Position 1970’s-80’s

  7. Farmer, pastoralists, miners: 1970’s & 80’s Decades of promise & frustration International demand for commodities Corporate & national pride Vital & heroic endeavour Paradox of public support wavering Infringement of Aboriginal rights Threat to environment Why?

  8. A decade of legal debate - Mabo Served to clarify & confuse Relationships rather than litigation Recognition of ‘standing’ The need for ‘modern’ agreements Paradigm Shift in the 90’s

  9. “In CRA, we believe there are major opportunities for growth in outback Australia which will only be realised with the full co-operation of all interested parties” The Native Title Act….”laid the basis for better exploration access and thus increased the probability that the next decade will see a series of CRA operations developed in active partnership with Aboriginal people” Leon Davis, Incoming CEO Securities Institute, March 1995

  10. Culture Shift -1995 It is my desire to move away from a litigious framework I wish to open channels to those who are not favourably disposed to Rio Tinto I want to establish innovative ways of sharing with and/or compensating indigenous people I believe that a negative attitude will produce negative results I have an open mind on how we should approach the question Leon Davis CRA MDs Conference April, 1995

  11. Aboriginal & Torres Strait Islanders Policy This Policy is based upon recognition and respect. Rio Tinto recognises that Aboriginal and Torres Strait Islander people in Australia:  have been disadvantaged and dispossessed  have a special connection to land and waters  have native title rights recognised by law Rio Tinto respects Aboriginal & Torres Strait Islander peoples’  cultural diversity  aspirations for self sufficiency  interest in land management

  12. Aboriginal & Torres Strait Islanders Policy In all exploration and development in Australia Rio Tinto will always consider Aboriginal and Torres Strait Islander people issues. Where there are traditional or historical connections to particular land and waters, Rio Tinto will engage with Aboriginal and Torres Strait Islander stakeholders and their representatives to find mutually advantageous outcomes. Outcomes for Aboriginal and Torres Strait Islander people will result from listening to them. Economic independence through direct employment, business development and training are among the advantages that Rio Tinto will offer. Strong support will be given to activities that are sustainable after Rio Tinto has left the area. Leigh Clifford Chief Executive

  13. Policy Implementation Regional & Land Access Agreements Regional Development Programs Rio Tinto Aboriginal Foundation

  14. Regional & Land Access Agreements Rio Tinto seeks consultative mine development and land access agreements with Aboriginal TO’s & groups affected by Rio Tinto operations. Wherever appropriate and possible we seek to include State governments in tripartite arrangements Since 1996 5 major mine development agreements 30 exploration access agreements 2001 Eastern Guruma Agreement Western Cape Communities Agreement

  15. Comalco Weipa ERA Western Cape Benda Bluff Mt Lean Balanggara Walgundu Kimberley MOU Dambinangari Stokes Range Argyle Diamonds Dampier Salt Sth Nicholson Century Nyamal Hamersley Iron Comalco Gladstone Yandicoogina Robe NT Gurama Pacific Coal Kintyre Hail Creek Pine Ridge Yamtaji Land White Lakes Mt Candolle Yulga Jinna QLD De Rose Hill Mt Davies Thalanyji SA Three Springs WA Wellington Common Peak Gold Far West Coast SA Coal & Allied NSW Hunter Valley North Parkes VIC Rio Tinto Operating Site Rio Tinto Exploration Tenement Comalco Bell Bay TAS Land Use Agreement Completed or Pending Rio Tinto Operations & Land Use Agreements

  16. Western Cape Communities • Co-existence Agreement • March 2001 • Comalco • Cape York Land Council • 11 Traditional Owner Groups • Councils (Aurukun, Napranum, Mapoon and New Mapoon) • Queensland Government

  17. Mapoon Weipa Napranum Aurukun

  18. Western Cape Communities • Weipa Population 2000 • Daily Jet Service to Cairns • Regional Centre • Company Town • Napranum Population 1000 • 7 km from Weipa • Local Council • Aurukun Population 1000 • 200 km by dirt road from Weipa • Shire Council • Mapoon Population 250 • 80 km by dirt road from Weipa • Local Council • New Mapoon Population 280 • 250 km by dirt road from Weipa • Local Council

  19. History 1957 – Comalco awarded mining lease from Qld Govt 1961 – First bauxite mined and shipped from Weipa 1963 – Mapoon closed - Forced removal many families 1992 – Mabo decision - Landmark for Native Title rights 1993 – Wik Peoples challenged Comalco Act & Lease – Native Title Act 1995 – Comalco begins negotiations with CYLC 1996 – Wik: High Court finds Comalco interests valid 1997 –Century Zinc Agreement signed –Alcan agreement with communities; Comalco deal with Alcan 1998 – NTA amendments 2001 – WCCCA signed

  20. Local Context? • Comalco and Rio Tinto recognised that negotiation and consultation was far preferable to litigation. • Lease until 2062 – however, a recognised need to “modernise” relationships rather than rely on ad hoc initiatives • Recognise Traditional Owner rights • Co-existence agreements (ILUAs) made possible under NT Act to address respective interests

  21. Basis for Agreement • Mutual respect and recognition • Support for future Comalco mining operations • Economic development of indigenous communities • Increased Indigenous employment in Comalco • Increased Indigenous representation in consultations about operations • Increased level of cultural awareness among Comalco employees • Requirement for ILUA registration and native title applications

  22. Key Aspects • Charitable Trust controlled by majority Traditional Owners, with Community reps., State, CYLC and Comalco as invitees • - $2.5 million Comalco annual contribution • - $1.5 million annual Qld Govt contribution • (both increase with production & prices) • - 60% of annual funding to the Trust is placed in long-term secure investments

  23. Key aspects (cont.) • $500,000 Employment and Training Budget • - managed by Comalco to run programs endorsed by the Coordinating Committee • $150,000 Cultural Awareness Fund • - allowance for bursaries, cultural heritage & Ranger programs • All Comalco staff to complete Cultural Awareness Course run by TO’s • Transfer of Sudley Station for agri-business & Indigenous training: • - 1325 square km working property(6000 head of cattle; improvements and homestead facilities)

  24. Coordinating Committee • Coordinating Committee to oversee day to day implementation of Agreement and consult on : • - cultural heritage and site management • - Comalco operations and plans • - employment and training initiatives • - environmental & rehabilitation aspects • land access (mine and recreation) • Committee has broad representation from all signatories to the Agreement

  25. Ceremony • The Agreement was signed by all parties on Wednesday 14 March 2001 at Weipa • Premier Peter Beattie issued a formal apology to the people of Mapoon • Comalco apologised for taking 40 years to come to such an agreement • Speeches acknowledged a new era for Western Cape Indigenous people • - acknowledged responsibilities and provided the means for delivering a better future

  26. Globalisation • Transformation of social relations • Growth global & regional connections • Reconfiguration of social geography • Far-reaching implications for governance • Contrast to sovereign statehood framework of 18th-20th Centuries

  27. Globalisation • Catchcry of the 21st Century • Vagueness, inconsistency, confusion • Oversimplification, exaggeration, • Wishful thinking • A number of broad usages • Related, overlapping and not new at all

  28. ‘International’ • Cross-border activity – sovereign states • Growth in international transaction & interdependence • Increased movements - state frontiers • people, • products, • money, investments, • messages, ideas • Events & conditions in one country inevitably effect others

  29. Removal of restrictions • Movements between countries • ‘open’, ‘borderless’ world economy • Reduction, even abolition of • Statutory trade barriers • Foreign exchange controls • Capital controls • Privileged citizens & professions are particularly mobile

  30. ‘Worldwide’ & ‘Westernisaton’ • Objects & experiences • Gregorian calendar, automobiles, Chinese restaurants, CSR • ‘Modernisation’ • Capitalism, rationalism, industrialism, bureaucratism • Heavily impacting local governance

  31. Reconfiguration of governance • No longer defined soley by • Sovereign states, territorial places & borders • Large-scale reconfiguration of territorial controls, this is what makes contemporary globalisation new & different • CNN broadcast, electronic finance, climate change, internet, intercontinental missiles, rules of world trade

  32. Nation states still matter • Continue to exert significant influence • Co-existence • Fuzzy sovereignty • Regional currencies • Euro • US dollar

  33. Globalisation is Uneven • Some enjoy greater global connectivity • North America, North‑East Asia, Australasia, Southern Africa and Western Europe • Managers, professionals & the wealthy • Conurbations • Elsewhere nationalism still reigns • Often brutally

  34. Nationalism remains strong • Well established or still emerging • Industrialisation & division of labour • Effective large-scale public administration • Imperative of cultural association • Five factors define nationality • collective name • common myth of ancestry • distinctive shared culture • specific territory • sense of solidarity

  35. Nationalism remains strong • Well established or still emerging • Industrialisation & division of labour • Effective large-scale public administration • Imperative of cultural association • Five factors define nationality • collective name • common myth of ancestry • distinctive shared culture • specific territory • sense of solidarity

  36. Governance challenge of 21st C • New social contracts • Confined to economic reach • Sets aside need for cultural coercion • Transformation of social geography • Decentralised • Local authorities • Human rights, economic growth, ecological integrity attain a higher priority

  37. Governance challenge of 21st C • New social contracts • Confined to economic reach • Sets aside need for cultural coercion • Transformation of social geography • Decentralised • Local authorities • Human rights, economic growth, ecological integrity attain a higher priority

  38. No demise of Sovereign State • Robust survival • Some are stronger than ever • Change on traditional understanding • ‘sovereignty’, ‘crown’ ownership, ‘royalties’ • Multilateral rather than unilateral governance now the norm

  39. Nationalism & Globalisation • Military forces, currencies, public policy, state-sponsored amenity • Optimising scale arsing from industrialisation • Shipping, railways, telegraphy • Globalisation • Optimising scale of the information age • Expanded scale, but limit scope • Do not seek to control everything • Confined to economic sphere • Not social, cultural & spiritual • No such thing as ‘National Socialist’ corporation

  40. Sub-state & Supra-state • Regional & local regimes have gained • e.g. Scottish and Welsh assemblies • Virtual ‘city states’ dominate world finance • Supra-state institutions • EU, IMF, NATO, OECD, WTO, other international agencies • Dispersion of authority • ‘up’ & ‘down’ • lateral • Governance is multi-layered & diffuse

  41. Sub-state & Supra-state • Regional & local regimes have gained • e.g. Scottish and Welsh assemblies • Virtual ‘city states’ dominate world finance • Supra-state institutions • EU, IMF, NATO, OECD, WTO, other international agencies • Dispersion of authority • ‘up’ & ‘down’ • lateral • Governance is multi-layered & diffuse

  42. ‘Global Culture’? • Has failed to emerge • Except maybe in international airports & hotels • People are choosing to accentuate their local identity • Celebration of diversity, …..or • Political fragmentation • Paradox? • Countervailing nature of humanity • Tribalism, local culture is alive and well!

  43. Corporate Citizenship • Enlightened vision & ‘self-interest’ alone cannot guarantee • Shareholder activism, ethical investment, consumer boycotts • Pension, insurance & investment funds – need for mobility! • Democratic government cycles vs instant market response

  44. Corporate Citizenship • Enlightened vision & ‘self-interest’ alone cannot guarantee • Shareholder activism, ethical investment, consumer boycotts • Pension, insurance & investment funds – need for mobility! • Democratic government cycles vs instant market response