Rio Tinto Alcan - Department of Natural Resources and Mines

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123 Albert Street
Brisbane Queensland 4000
Australia
T +61 (o) 7 3625 3000
F +61 (o) 7 3625 3001
31 January 2014
Director, Policy
Aboriginal and Torres Strait Islander Land Services
PO Box 2454
BRISBANE QLD 4000
By Email: [email protected]
Dear Director
Aboriginal and Torres Strait Islander Land (Providing Freehold) Amendment Bill
2013 — Submission
Rio Tinto Alcan makes this submission in relation to the Aboriginal and Torres Strait
Islander Land (Providing Freehold) Amendment Bill 2013 (Bill) which was released for
consultation on 5 December 2013.
Rio Tinto Alcan wishes to confirm its general support for the objectives of the Bill, and to
raise several issues which we recommend are considered by the Department of Natural
Resources and Mines (Department) in the consultation process and further review of the
Bill.
1
Background to Rio Tinto Alcan's Operations
Rio Tinto Alcan is one of five product groups operated by Rio Tinto, a leading
international mining group. Rio Tinto Alcan's global bauxite and alumina division
is headquartered in Queensland. It operates the Weipa bauxite mine on Western
Cape York Peninsula, operates and holds a 59.4 per cent interest in the Boyne
Smelters aluminium smelting operation, the Yarwun alumina refinery in
Gladstone, and has an 80 per cent interest in the Queensland Alumina Limited
refinery in Gladstone. As recently as 2012 Rio Tinto Alcan completed an
expansion of the Yarwun refinery, finalising the commissioning of what is now a
3.4 million tonne per annum operation, and has recently completed a $700 million
upgrade project at Boyne Smelters.
Rio Tinto Alcan's bauxite and alumina operations employ approximately three
thousand people and are the mainstays of important regional communities. Each
year, the operations contribute hundreds of millions of dollars in salaries and
wages, $10 million in royalties and $6.5 million in community investments.
For the purposes of the Bill, the most relevant operation is the Weipa bauxite
mine, which is the focus of this submission.
2
History of Rio Tinto Alcan in Weipa
Comalco began mining activities at Weipa, on the Western Cape York Peninsula,
in the late 1950s following the discovery of the vast bauxite resource by geologist
Harry Evans in 1955 and the entry into a State Agreement, endorsed by the then
Premier of the State of Queensland and Cornalco. Alcan South Pacific acquired a
prospecting and then mining area in the north and east of the Comalco lease in
Rio Tinto Aluminium Limited ABN 51 oog 679 127
Registered office: 123 Albert Street Brisbane 4000 Australia
(168-3254/11937879v.2)
the 1960's, also pursuant to a State Agreement. Rio Tinto Alcan companies have
been conducting mining operations in Weipa for over 50 years.
Rio Tinto Alcan supports Native Title rights and undertakes its mining operations
in consultation with the Traditional Owners of the region, ensuring that obligations
established under our Indigenous agreements are met.
In 1997 Alcan South Pacific also entered into an agreement known as the Ely
Bauxite Mining Project Agreement with six Traditional Owner groups, three
Aboriginal Councils and the Cape York Land Council. Following the acquisition of
Alcan by Rio Tinto in October 2007, Rio Tinto Alcan Weipa is now responsible for
the implementation of this agreement.
In 2001, the Western Cape Communities Co-Existence Agreement (WCCCA),
was signed by Rio Tinto Alcan (then named Comalco), with eleven Traditional
Owner groups, four local Aboriginal Councils, the Cape York Land Council and
the Queensland Government.
The main purpose of both agreements is to provide a comprehensive, legally
binding structure for Rio Tinto Alcan's relationships with the Traditional Owners,
on whose traditional lands Rio Tinto Alcan acknowledges it operates. These
agreements were a ground breaking change in relationships not only between
Rio Tinto Alcan and Traditional Owners on the Western Cape, but also
represented a high water mark of mining companies operating on lands subject to
Traditional Ownership and Native Title.
Whilst these agreements recognise Native Title rights and interests on Rio Tinto
Alcan mining lease areas, they also seek to assist with the preservation of
Traditional Owners' culture and to provide a range of benefits and initiatives for
the communities. Production linked payments are made by Rio Tinto Alcan to
Traditional Owners' trusts. Local benefits are distributed via these trusts for
purposes including education, hardship, cultural activities and business
development.
Rio Tinto Alcan works collaboratively with Traditional Owners, through the
relevant agreement structures, to develop comprehensive communities, heritage
and environmental management plans. The engagement activities undertaken as
part of the implementation of these plans includes an extensive annual schedule
of cultural heritage and environmental studies, surveys and monitoring
programmes. In the majority of cases, Traditional Owners are directly engaged to
support and provide traditional knowledge input into this work.
In these relationships, Rio Tinto Alcan works with the Weipa community, and the
Traditional Owner communities including Napranum, Aurukun, Mapoon and the
Northern Peninsula area.
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State Agreement Acts
The property rights and obligations and other rights in respect of the Comalco
and Alcan leases were established under special agreements with the State.
These agreements are given the force of law under the Commonwealth
Aluminium Corporation Pty Limited Agreement Act 1957 (QLD) (ComaIco Act)
and the Alcan Queensland Pty Limited Agreement Act 1965 (OLD) (Alcan Act)
and have been the subject of amendments from time to time through a process of
negotiation and further agreement with the State.
Rio Tinto Alcan has over many years and continues to rely on these rights to
underpin significant investments in both the downstream processing facilities in
Gladstone as well as ongoing investment in the Western Cape.
4
Community Investment and Economic Development
Rio Tinto Alcan plays an important role in the quality of life and future of the
Western Cape York region and Queensland. The operation contributes both
funding and resources to local people and organisations in areas such as
(168 - 3254 937879v.2)
childcare, education, employment, training, health, safety, environment and
recreation, royalties to the Queensland Government and production linked
payments and employment support and training for Traditional Owners.
Community facilities and infrastructure are also managed and partly funded by
Rio Tinto Alcan and partly funded through a user pays system. This includes
providing electricity to Weipa at subsidised rates.
As at the end of 2013, Rio Tinto Alcan's Weipa operations directly employed
approximately 1,073 people, 22 per cent of whom identify themselves as
Indigenous. Eleven per cent of Rio Tinto Alcan's Weipa employees consider
themselves to be local Aboriginal people, with specific connections to the
Traditional Owner groups from across the mining lease areas.
Strong local suppliers, service providers and contractors are key the success of
our business and the economic sustainability for the region.
Rio Tinto Alcan supports the development of infrastructure to improve connection
between the communities. This enables commercial activity and business
development as well as improved health and educational outcomes which then
leads to a good quality employee base, improved services and economic activity
outside of mining.
Rio Tinto Alcan is supportive of efforts to develop business opportunities in the
region as is strengthens the economic communities.
5
Submissions on the Bill
5.1
Objectives of the Bill
Rio Tinto Alcan supports the objectives of the Bill; being to provide Aboriginal
people and Torres Strait Islanders the same land ownership opportunities in their
communities as available throughout Queensland.
Rio Tinto Alcan supports self-determination by Aboriginal and Torres Strait
Islanders, and the promotion of economic development by and within Traditional
Owner communities.
These objectives are consistent with Rio Tinto Alcan's vision and strategy in
relation to economic development of the Western Cape region and engagement
of Traditional Owners.
5.2
Definition of Eligible Persons
Rio Tinto Alcan has no particular concerns with the draft definition of 'eligible
persons' in the Bill, however recommends the Department consult widely with
Traditional Owner community groups to ensure the definition delivers the
intended scope of eligibility and is appropriate for the respective communities.
5.3
Governance and Process Management
Rio Tinto Alcan recommends the Department considers carefully the governance
and process management requirements of the freehold process contemplated in
the Bill, to ensure that objective and transparent processes are applied in the
granting of freehold land, and in secondary dealings with the freehold land.
There may be merit, for example, in developing model governance processes
which communities may consider, and if appropriate, use as a starting point for
the development of their own specific approach.
Rio Tinto Alcan recommends the Department considers the potential for
opportunistic and predatory behaviour from third parties involved in secondary
and further dealings of subject land between eligible persons and unrelated third
parties (with no Traditional Owner connections to the subject land); where third
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(168 - 325 4/11937879v.2)
parties seek to take advantage of vulnerable communities with - limited -economic
means.
This risk may be enhanced around areas with high economic development
potential such as Aurukun (given the South of Embley and potential Aurukun
bauxite mining projects), and coastal areas which may have inherent real estate
value and potential for tourism development.
Rio Tinto Alcan recommends that wide community consultation occur to
determine whether the respective communities share such concerns, and
whether those communities would value safeguards around third party dealings.
We see this as worthy of consideration to ensure that the broader policy
objectives and promotion of Traditional Owner interests are not undermined and
do not end in disenfranchised rather than empowered communities.
5.4
Freehold being subject to planning and access conditions
Rio Tinto Alcan submits that grant of freehold land to eligible persons be subject
to the relevant planning conditions that would be ordinarily applicable to the
subject land, and that any access and foreseeable future infrastructure
requirements relevant to the land be secured prior to the freehold grant.
This is to avoid a situation where infrastructure such as roads, utilities and
services are compromised due to the lack of any protection such as gazettal or
similar statutory process, and the respective levels of government, or third parties
such as existing operators (including for example Rio Tinto Alcan, graziers and
commercial operators), new project proponents and the public may be required to
negotiate access with private owners to what has become freehold land, contrary
to good practice planning and access arrangements for infrastructure. This may
present further hurdles and complications for ongoing economic development.
Rio Tinto Alcan is aware of similar situations having occurred in the past, where
roadways that were previously under local government management were not
gazetted prior to being transferred as freehold, resulting in infrastructure
challenges going forward due to the need to negotiate with private third parties.
Similar issues may limit other economic activity including tourism, agriculture,
forestry and similar industries. Infrastructure improvement and sustainable
economic development is an aspiration of the communities on the Western Cape,
and care should be taken to ensure that these opportunities are not limited by the
Bill as an unintended consequence.
Conclusion
Rio Tinto Alcan supports the objectives of the Bill, which is consistent with Rio Tinto
Alcan's vision for the Western Cape region, and commends the Queensland Government
for pursuing this objective.
Rio Tinto Alcan recommends that detailed consultation take place with the respective
Traditional Owner communities directly impacted by the Bill, and does have concerns
about the potential for opportunistic and predatory behaviour by third parties seeking to
profit from the process. Rio Tinto Alcan recommends that consideration be given to
protections to mitigate such risks.
Finally, Rio Tinto Alcan notes that conditional protection needs to be put in place to
ensure that planning processes and future infrastructure requirements are protected prior
to freehold grant, to ensure that existing operations and economic development not be
compromised for the respective region.
4
068 - 3254/ 1 1 937879v.2)
We thank you for the opportunity to make these submissions and look forward to the
opportunity to work through the details of what is needed to enable the Government's
policy objectives to be achieved whilst mitigating the risks outlined above.
Enquiries should be directed to Julia Wilkins on 07 3625 5141 or
[email protected] . Julia will coordinate the relevant people within Rio Tinto Alcan
to assist with any further information.
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Chief Operating Officer - Bauxite & Alumina
Rio Tinto Alcan
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