Rio Tinto has quietly started paying royalties on three big iron ore mines that pre-date native title in what amounts to a major concession to traditional owners in the Pilbara.
Rio Tinto has quietly started paying royalties on three big iron ore mines that pre-date native title in what amounts to a major concession to traditional owners in the Pilbara.
The Tom Price mine was opened in 1966 while the Marandoo and Brockman 2 mines opened in the early 1990s.
Rio has never paid royalties to traditional owners for production from these mines on the basis they were already established, or relevant legislation was already enacted, before passage of the Native Title Act in 1993.
This has been a long-running grievance for the Eastern Guruma people, whose lands play host to seven big iron ore mines.
Business News has learnt that Rio quietly agreed last year to reverse its long-standing policy.
As a result, royalty payments to the Eastern Guruma people more than doubled last financial year.
The scale of these payments can be gleaned from financial reports lodged by a special purpose trust, the Eastern Guruma Charitable Trust No 2, with the Australian Charities and Not-for-profits Commission.
The trust has been receiving mining royalties for more than a decade on production from three other iron ore mines on Eastern Guruma country - Silvergrass, Nammuldi and Western Turner Syncline – that were established by Rio after the Native Title Act came into force.
Royalty payments have gradually increased in line with production volumes, from just $3.6 million in the year to June 2013 to $26.8 million in FY21,
That was followed by a big jump to $58.1 million in FY22.
Rio’s quarterly reports indicate there has been no significant growth in production volumes during this period, which confirms the growth in royalty payments came from the new policy.
Rio Tinto and Wintawari Guruma Aboriginal Corporation, which represents the Eastern Guruma people, both declined to comment when approached by Business News.
However people close to the Eastern Guruma have confirmed Rio’s policy reversal.
Rio and Wintawari Guruma are understood to be engaged in broader discussions, as part of Rio’s plan to modernise the land use agreements it has with all traditional owners in the Pilbara.
This is part of the mining giant’s efforts to mend relations with traditional owners after the Juukan Gorge controversy.
Wintawari Guruma has previously spoken out on the lack of royalties on old mines.
In 2015, for instance, director Tony Bevan tackled Rio Tinto’s then iron ore boss Andrew Harding on the issue.
“Rio Tinto has mined its flagship Mt Tom Price mine for 50 years — 50 very lucrative years — but has not paid 1 cent in royalties to the Eastern Guruma, who are recognised by this nation’s highest court as the rightful owners of this land,” he told a business breakfast in Perth.
“Do you believe it is right for Rio Tinto, which often trumpets its relationship with indigenous Australia, to continue to ignore this injustice?”
Mr Harding responded by saying he was not an expert on the situation.
In the post-Juukan Gorge era, it is hard to imagine a senior mining executive getting away with the same answer.
The Marandoo mine, which the Eastern Guruma people consider a place of immense cultural significance, has been particularly problematic.
Management of the mine was authorised under a separate act of parliament, the Aboriginal Heritage (Marandoo) Act 1992, which effectively removed any requirement for Rio to comply with the provisions of the Aboriginal Heritage Act.
It also took away any opportunity for the Eastern Guruma people to challenge the project.
Rio removed hundreds of Aboriginal artefacts from the Marandoo mine site in the 1990s and sent them interstate to Charles Darwin University.
It emerged during the 2021 Juukan Gorge inquiry that the university dumped many of the artefacts in landfill.
Rio’s chief executive Australia Kellie Parker told the inquiry Rio was keen to make amends.
“I acknowledge that the events of Marandoo, including the passage of the Act, the disposal of salvaged materials, and the reduced access to country have all caused hurt and pain for Eastern Guruma traditional owners,” Ms Parker told the inquiry.
“I reiterate our apology to the Eastern Guruma and confirm Rio Tinto is committed to working with them to support the repeal of the Marandoo Act, modernise our agreement to meet our shared expectations of partnership, and do our best to heal the wounds of the elders and the Eastern Guruma people.”
The state government has proposed that its Aboriginal Cultural Heritage Bill incorporate the repeal of the Aboriginal Heritage (Marandoo) Act 1992.
The government has previously disclosed it has been in discussion with Rio Tinto and traditional owners about this matter.
The problem with this strategy is that the Aboriginal Cultural Heritage Bill is opposed by many Aboriginal groups.
As well as the six mines operated by Rio, Eastern Guruma country also hosts Fortescue Metals Group’s Solomon mine.
Fortescue paid about $5.8 million in “native title compensation” to Wintawari Guruma Aboriginal Corporation in FY22, according to the corporation’s annual report.
The Solomon mine also overlaps with Yindjibarndi country – that underlies a long-running dispute between Fortescue and Yindjibarndi Aboriginal Corporation.
Editor’s Note: For an in-depth feature on mining royalties in WA, including payments to all major Aboriginal trusts, see the next edition of Business News magazine on Monday 13 February.
