CHAPTER 6

The Native Title Amendment Bill 1997 - TENTH REPORT
Table of Contents

CHAPTER 6

CHAPTER 6

The Right to Negotiate and Mining

 

CHAPTER 6

The Right to Negotiate and Mining

Introduction

6.1 In his Second Reading Speech the Attorney-General stated that:

6.2 Mr Dick Wells, Executive Director of the Minerals Council of Australia, told the Committee that the processes under the Act constitute 'another layer of regulation that is exceedingly costly for us to deal with'.[2] Mr George Savell, the Chief Executive of the Association of Mining and Exploration Companies, pointed out that there is not only the direct cost but also the cost to Australia of the exploration activity that does not occur here because of native title concerns.[3] He told the Committee that Act is unworkable in commercial terms and in his Association's view is the greatest single disincentive to mineral exploration and mining development in Australia at this time.[4] Mr Savell also said:

6.3 Ms Catherine Hobbs, a geologist and mining company representative with experience in South Australia and Western Australia also described to the Committee the difficulties with the right to negotiate under the Act. In addition to the problems arising from overlapping claims, she identified abuses of the right to negotiate, expressing particular concern that there is no regulation of who can negotiate for native title claimants:

6.4 The Committee notes that under the right to negotiate at present the obligation to negotiate in good faith falls only on the government party. Under the amendments proposed in the Bill all of the negotiation parties would have an obligation to negotiate in good faith (new s.31(1)).

Opposition to Alterations of the RTN

NIWG and ATSIC

6.5 The position of the National Indigenous Working Group at page 13 of its submission is that the existing rights of native title holders at common law and under the Native Title Act 1993 (NTA) must not be reduced or removed. The NIWG opposes any moves to diminish indigenous rights for the benefit of others and believes that it has developed a comprehensive solution to coexistence, validation and the workability of the NTA which provide enhanced efficiency, without altering the existing rights of any party. The NIWG believes that the right to negotiate (RTN) must not be impaired or removed and must continue to apply to exploration, mining and compulsory acquisition to the extent it now applies. The NIWG's argument is in eight parts as follows:

Minimum Level of Protection

6.6 The NIWG considers (Submission, p.14) that the RTN takes account of the spiritual relationship between native title holders and their traditional lands. In particular, it provides the basis for the protection of areas and sites of significance, the protection and promotion of Indigenous culture and community living and main-tains the ability of native title holders to enjoy and utilise the natural environment.

Certainty of Outcome

6.7 In the case of exploration, the NIWG has pointed out (Submission, p.14) that the RTN provides for certainty of outcome within 2 months if the expedited procedure applies.

6.8 In the view of the NIWG, the removal or diminution of the RTN such that it no longer contains the minimum level of protection for native title will create uncertainty by forcing native title holders outside the NTA and into the Courts.

The RTN Deals with the Backlog in the Determination of Native Title

6.9 The NIWG advised the Committee that, as a result of the failure of Australian governments to protect Indigenous rights in the past, there is a backlog in the determination on native title throughout the country - such determinations being the prescribed means of acknowledgment of existing common law native title rights. For NIWG, the RTN addresses this problem in a balanced way by providing for the interests of resource developers and those of yet undetermined native title holders who can only access the RTN after lodging a claim and passing a reasonable threshold test.

The Expedited Procedure

6.10 Activities such as exploration can bypass the RTN through an 'expedited procedure' which removes the RTN if the activity does not directly interfere with community life; interfere with areas or sites of particular significance; or involve a major disturbance to any land or waters.

6.11 According to the NIWG (Submission, p15), in its 1996 review of the NTA, the Industry Commission reported that due to policy differences between the States, the expedited procedure had only been used extensively in Western Australia, where the procedure had resulted in the grant of 94 per cent of applications for prospecting and explorations licences in minimum time. Other States and Territories chose to ignore the NTA.

The RTN Already Favours Resouce Developers

6.12 The NIWG has pointed out that the RTN procedure cannot be used as a veto on resource development. To the contrary, it favours resource development through short timeframes and compulsory arbitration, limits on compensation and ministerial override.

6.13 The NIWG claims that the mining industry's view that native title has adversely affected mineral exploration in Australia is exaggerated:

6.14 Further, the NIWG has advised that claims that native title has brought about an increase in 'brownfields' exploration can equally be explained by the increasing proportions of middle-aged mines in Australia:

6.15 This benign view of the effect of the RTN on mining activity is supported by ATSIC:

Other Indigenous Criticism

6.16 Comments made by a number of groups suggest that it is necessary to retain the right to negotiate on both exploration and mining because the area subject to exploration may be much larger than for a proposed mining tenement; the exploration activities may have a lesser impact on an area than mining activities; and it is unrealistic to negotiate about the conditions for a potential mine at exploration stage, for example, before a suitable deposit has been located, and no mine may ever be built.

6.17 In their evidence and submissions, some indigenous groups have expressed concerns that their ability to regulate access, and therefore to protect sacred sites will be impaired if the right to negotiate at the exploration stage be removed. Comments by the Northern Land Council and the spokesman for the Ngaanyatjarra Council indicate that the right to negotiate at the exploration stage allows miners and native title holders to develop a good working relationship early on, particularly because of the opportunity to raise concerns about site clearance at a preliminary stage. The early contact is said to facilitate negotiations at the mine development stage.

The Commonwealth's Position

6.18 ATSIC and the NIWG have a much more benign view of the operation to date of the right to negotiate process than does the Commonwealth. The Government Submission (p.50) advised that overall about 74% of proposed acts referred through NTA procedures which have completed the notification period have proceeded to grant, as they did not attract a native title claim or objection to the expedited procedure. While this clearance rate is on the face of it apparently reasonable, further analysis reveals significant problems with acts which attract the full right to negotiate. Importantly, of the 1,910 acts which have been subject to the full right to negotiate process only 148 were cleared for grant as at 10 October 1997. This is a clearance rate of about 7.7%.

6.19 Further, the Commonwealth points out (Submission, p.51) that, as WA made clear in its evidence on 15 October, most of the mineral tenements which have attracted the right to negotiate are mining leases. These are the titles under which the substantial economic development occurs. The overall clearance rate for all mining leases the subject of section 29 notices is currently around 18% and the trend clearance rate for mining leases has been declining since WA began using the NTA procedures. For example, the clearance rate for mining leases at 13 September 1996 was 22%. As more claims have been lodged a greater proportion of mining leases are subject to the right to negotiate.

6.20 The Commonwealth has confirmed (Submission, p.53) that there are two main ways in which the right to negotiate at the exploration stage may be affected by the proposals in the Bill:

6.21 According to the Commonwealth, the result in relation to the first is that where an agreement or determination for an exploration or prospecting authority contains conditions relating to the future grant of a mining authority, that authority can be granted without going through the right to negotiate providing that all the conditions in the agreement or determination have been met.

6.22 In relation to the second, the Commonwealth has pointed out (Submission, p.53) that section 26A allows the States and Territories to develop systems for approval by the Commonwealth Minister for granting exploration titles. If approved, these schemes will apply instead of the right to negotiate in relation to these types of grants. Certain conditions for approval must be met:

Provisions Relating to Opal Exploration

6.23 The proposed s.26C provides that the right to negotiate does not apply to small-scale opal and gem mining. Under the Act, 'mining' is defined to include 'exploration' and 'prospecting' (s.253), so the provision also applies to these activities. However the Lightning Ridge Miners Association drew to the Committee's attention what it saw as a problem with the drafting of the proposed s.26C. One of the criteria imposed by the section to ensure that it applies only to small-scale activities is that the right to mine 'allows that mining only in an area no larger than 5 hectares' (new s.26C(1)(c)). The Association pointed out that at the exploration stage, the areas typically involved cover some hundreds of hectares.[8] Hence the provision does not in any practical way operate to exclude the right to negotiate during the exploration phase. As the Association described it to the Committee, the opal exploration phase conducted by its members has only the most limited impact on the land.

6.24 The Committee agrees that the right to negotiate should not apply to each individual opal exploration activity and also that, as presently drafted, the proposed s.26C does not achieve the desired result. However, the Committee believes that the proposed s.26A does provide an adequate solution for opal explorers. Under s.26A, the Minister may determine in writing that a class of acts is an 'approved exploration' if he or she considers that the acts in the class are unlikely to have a significant impact on the land. A class of acts under this provision could, for example, cover exploration for opals in the Lightning Ridge area. The Committee however recommends that this matter be clarified to ensure that prospecting activity in these circumstances may continue.

6.25 No right to negotiate applies to 'approved exploration' under s.26A but consultation is required. Before giving the approval, the Minister must have notified any relevant representative Aboriginal/Torres Strait Islander body and the public about the proposed determination, invited submissions from them and considered any submissions made. In addition, the Minister must be satisfied all relevant registered native title bodies corporate, registered native title claimants and representative Aboriginal/Torres Strait Islander bodies will have a right to be notified that each act included in the class is to be done, whether or not others have such a right (new s.26A(6)(a)). In addition, they must also have a right to be heard by an independent person or body about whether and how the act is to be done, if this right is available to other persons with an interest in land in that State or Territory in similar circumstances (new s.26A(6)(b)). For example, if a pastoralist or holder of a freehold title has a right under State legislation to be heard in a Mining Warden's Court in relation to the grant of an exploration title, then the relevant native title holders, claimants and representative bodies must also have such a right.

6.26 The Committee considers that the proposed s.26A, with the degree of consultation that it requires, strikes an appropriate balance between native title claimants and those seeking to undertake opal exploration.

Conclusion

6.27 The proposed amendments to the RTN process are endorsed. Notably, the existing RTN process should not be supported on the ground that it assists in the protection of indigenous heritage; such protection is provided by the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 currently under review by this Committee.

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Footnotes:

[1] House of Representatives Daily Hansard, 4 September 1997, p.7528

[2] Evidence, p.484. See similarly Evidence, pp.454-55 (Association of Mining and Exploration Companies).

[3] Evidence, p.455.

[4] Evidence, p.431.

[5] Evidence, p.432.

[6] Evidence, p.846.

[7] ATSIC Submission, p.8.

[8] Evidence, p.1917.