Transcript Rio Tinto

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
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
Rio Tinto - Location of Operations
Zinc
Diamonds
Aluminium
Zinc, silver Talc Coal
and gold
Gold
Borates
Coal
Gold
TiO2 / Iron
Iron Ore
Talc
Talc
Copper / Tin
Copper /
Gold /
Silver /
Molybdenum
Copper / Gold
Coal
Gold
Gold
Iron ore
Nickel
Copper
Copper/gold
Borates
Gold
Copper
Uranium
TiO2
Gold
Uranium
Diamonds
Salt
Coal
Iron ore
Talc
Gold
Aluminium
Bauxite
Coal
Alumina
Aluminium
Coal
Copper/
gold
Aluminium
Rio Tinto - Spread of Assets
Assets at end 2001 - US$13 billion
Canad
a
15%
Europe
3%
USA
25
%
Indonesia
Africa
S America
5%
3%
4%
Australia
&
NZ
45%
Australian Operations & Land Status
Darwin
Comalco Weipa
ERA
Dampier
Salt
Rio Operation
RTE Tenement
Private Lands
Argyle Diamonds
Pastoral Leases
Hamersley Iron
Robe
CAP
National Parks
Aboriginal Land
Pacific Coal
Native Title Claim
Three Springs
Perth
Peake
Coal & Allied
North Parkes
500km
Bell Bay
NWA99005.ppt
02-11-1999
Mining Industry Position 1970’s-80’s
• 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
Why?
• 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
Paradigm Shift in the 90’s
• A decade of legal debate - Mabo
• Served to clarify & confuse
• Relationships rather than litigation
• Recognition of ‘standing’
• The need for ‘modern’ agreements
Leon Davis, Incoming CEO
“In CRA, we believe there are major
opportunities for growth in outback Australia
which will only be realised with the full cooperation 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”
Securities Institute, March 1995
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
Aboriginal & Torres Strait Islanders Policy
This Policy is based upon recognition and respect.
Rio Tinto recognises that Aboriginal and Torres Stra
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
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
Policy Implementation
• Regional & Land Access Agreements
• Regional Development Programs
• Rio Tinto Aboriginal Foundation
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
Rio Tinto Operations & Land Use Agreements
Comalco Weipa
ERA
Balanggara
Kimberley MOU
Dambinangari
Dampier
Salt
Western Cape
Benda Bluff
Mt Lean
Walgundu
Stokes Range
Argyle Diamonds
Sth Nicholson
Century
Nyamal
Hamersley Iron
Yandicoogina
NT
Gurama
Pacific Coal
Kintyre
Hail Creek
Yamtaji Land
White Lakes Pine Ridge
Mt Candolle Yulga Jinna
QLD
Mt Davies De Rose Hill
Thalanyji
Robe
Three Springs
Comalco
Gladstone
SA
WA
Wellington
Far West Coast SA Peak Gold
Common Coal & Allied
NSW
500km
Hunter Valley
North Parkes
VIC
Rio Tinto Operating Site
Rio Tinto Exploration Tenement
Land Use Agreement Completed or Pending
Comalco
TAS Bell Bay
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
Mapoon
Weipa
Napranum
Aurukun
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
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
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
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
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
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)
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
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
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
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
‘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
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
‘Worldwide’ & ‘Westernisaton’
• Objects & experiences
– Gregorian calendar, automobiles, Chinese
restaurants, CSR
• ‘Modernisation’
– Capitalism, rationalism, industrialism,
bureaucratism
– Heavily impacting local governance
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
Nation states still matter
• Continue to exert significant influence
• Co-existence
– Fuzzy sovereignty
– Regional currencies
• Euro
• US dollar
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
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
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
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
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
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
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
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
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
‘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!
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
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
Conclusion
• A change in social geography
• Question of governance
– Multi-layered, diffuse identity & regulation
– Counterweight to sovereign governance deficit?
• Governance evolution
– 16th century
• personified ‘divine majesty’
– 20th century
• geographic, constitutional, comprehensive public
sectors
– 21st century
• ? Global agencies & local constituencies
Conclusion
• A change in social geography
• Question of governance
– Multi-layered, diffuse identity & regulation
– Counterweight to sovereign governance deficit?
• Governance evolution
– 16th century
• personified ‘divine majesty’
– 20th century
• geographic, constitutional, comprehensive public
sectors
– 21st century
• ? Global agencies & local constituencies