15/11/2007 - 11:21

Sally Malay, Thundelarra sign deal with traditional owners

15/11/2007 - 11:21

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Nickel miner Sally Malay Ltd and West Perth-based Thundelarra Exploration Ltd have signed co-existence agreements with the traditional land owners of its East Kimberley projects.

Sally Malay, Thundelarra sign deal with traditional owners

Nickel miner Sally Malay Ltd and West Perth-based Thundelarra Exploration Ltd have signed co-existence agreements with the traditional land owners of its East Kimberley projects.

Negotiated through the Kimberley Land Council, the agreement incorporates a production royalty, assistance to improve regional health and education and commitments to secure the traditional owners involvement in the project through direct employment and the provision of contract services.

 

 

The full text of a company announcement is pasted below

Sally Malay Mining Limited (ASX Code: SMY) is pleased to announce that the Company and its joint venture partner, Thundelarra Exploration Limited (Thundelarra), have signed Co-Existence Agreements with the Traditional Owners, represented by the Kimberley Land Council (KLC), in relation to Sally Malay's mining operations at its namesake mine and the Sally Malay/Thundelarra Copernicus Joint Venture Project, both located in the East Kimberley.

Separate Co-Existence Agreements have been executed pertaining to the Sally Malay leases and the Copernicus Joint Venture lease application and will provide the Traditional Owners (TO's) with a significant community benefits package, including the following:

  • Net Smelter Return based royalties (payable in cash) based on production from both Sally Malay and Copernicus for the 2006/07 fiscal year onwards (the NSR for the 2004/05 and 2005/06 fiscal years for the Sally Malay Project will be satisfied by the issue of 447,505 Sally Malay shares);
  • financial assistance for education and health programmes;
  • financial assistance for employment services aimed at increasing TO's involvement with the Company's activities in the East Kimberley; and
  • various obligations on Sally Malay and Thundelarra to provide opportunities for TO's to participate in specific contracts to be awarded by the companies in the future.

This is a significant development for the Company and its JV partner in the following ways:

  • it demonstrates our willingness to engage with the TO's and reach a mutually acceptable outcome;
  • will provide the TO's with financial support for the betterment of current and future generations;
  • ensures a secure future of our mining and processing operations in the East Kimberley; and
  • paves the way for the development of the Copernicus Joint Venture, subject to the granting of the mining lease and all necessary statutory approvals.

Wayne Bergmann, Executive Director of the KLC, said "these agreements provide clear proof of what can be achieved when underlying principles of partnership and mutual respect form the basis of negotiations. By adopting a long term, mutually beneficial approach in negotiations, the KLC, Traditional Owners and resource companies are able to come to win-win agreements."

"The leadership shown by both Traditional Owners and the companies, particularly the respective boards and senior management is to be applauded," said Mr Bergmann.

"Their commitment and goodwill has allowed us all to understand what is important to each other, and to find common ground based on respect."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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