ESG Mining and Traditional Owners Tour

Author: Natalia Tsurkova To download a PDF version of this update, click here.  

We visited Perth in July to meet with mining companies and Traditional Owner (TO) groups. During the trip, we:

  • • Met with Capricorn Metals, Fortescue, Newmont, Greatland Resources, Paladin Energy, Liontown Resources, and Sandfire Resources
  • • Met with the Robe River Kuruma and Yinhawangka TO groups
  • • Joined a rehabilitation tour at South32 Worsley Alumina
  • • Visited Pilbara Minerals’ Pilgangoora site
 

For Solaris, one of the purposes of the trip was to observe the recent developments in the relationship between mining companies and TOs and see the situation on the ground.

Observations from the tour:

Shift in engagement with TOs:

Solaris perceives a shift is underway in the relationship between some mining companies and TO groups. TOs have aspirations to move away from simple compensation models towards true economic participation, where they are equal partners. There is still a long way to go, but some progress is being made.

  • • Companies are starting to modernise old agreements.
  • • Dedicated resources are being allocated.
  • • Respectful engagement and ongoing consultation is becoming more common.
  • • Many mining companies are supporting local employment, procurement, and cultural heritage programs even in areas without Native Title.
  • • Rehabilitation is staring to move beyond environmental – it increasingly includes TO involvement and is coordinated alongside cultural heritage protection.
 

Continuing issues:

  • • Recognition of historic harm and compensation remains mostly unresolved.
  • • Water usage is poorly monitored and there is a lack of transparency in how much different types of water are being drawn down. TOs say that water is treated as if it has no owner, and it is not recognised as a cultural resource.
 

Solaris believes water shortages continue to be a substantial risk for Australian mining companies.

 

What we want to see improved and will continue engaging on, along with other issues:

  • • Companies provide disclosures that reflect the voice of Indigenous communities.
  • • Greater transparency about failures in relationships with TOs, not just best practice examples.
  • • Respecting TO views as standard practice.
  • • More non-material remedies, such as apologies or memorials, to symbolically address historical harm.
  • • Internal systems that not only react to risks but actively work to prevent harm.
  • • More transparency overall, as mining companies sometimes seem to hide behind confidentiality clauses to cover the real situation and lack of progress.
 

Summary:

As outlined above, there are positive developments, but also areas for improvement. Resources is one of the largest sectors in Australia, making up around 20% of the S&P/ASX 200 by weight, and it also has a significant impact on Indigenous population. This highlights the importance of this area for Australia.

Many Indigenous people are not anti-mining – their focus is on rights, justice, and fair participation in the benefits of development. Finding the right balance between commercial interests and Indigenous rights is essential.

Please reach out if you would like more details about the trip or examples based on the companies and discussions we had, and information received during the tour.

                               

Above: At the Boddington Bauxite Mine, South32 Worsley Alumina – behind me are Jarrah forests at different stages of rehabilitation: areas from 2000 to 2021 nearby, older sites from the late 1980s in the distance, and some fresh rehabilitation newly completed.

 
DISCLAIMER: This communication has been prepared by the Investment Manager, Solaris Investment Management Limited (‘Solaris’) ACN 128 512 621 AFSL 330505. Pinnacle Fund Services Limited ACN 082 494 362 AFSL 238371 (‘PFSL’) is Solaris’ distribution partner. Neither PFSL nor Solaris is licensed to provide financial product advice. This communication is supplied on the following conditions which are expressly accepted and agreed to by each interested party (‘Recipient’). The information in this communication is not financial product advice and has been prepared without taking into account the objectives, financial situation or needs of any particular person. This communication does not purport to contain all of the information that may be required to evaluate Solaris, and the Recipient should conduct their own independent review, investigations and analysis of Solaris and of the information contained or referred to in this communication. This communication contains forward-looking statements. Although forward-looking statements contained in this communication are based upon what Solaris believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Neither Solaris, PFSL or their representatives and respective employees or officers (collectively, the Beneficiaries) make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information contained in this communication or subsequently provided to the Recipient or its advisers by any of the Beneficiaries, including, without limitation, any historical financial information, the estimates and projections and any other financial information derived there from, and nothing contained in this communication is, or shall be relied upon, as a promise or representation, whether as to the past or the future. Past performance is not a reliable indicator of future performance. The information in this communication has not been the subject of complete due diligence nor has all such information been the subject of proper verification by the Beneficiaries. Except insofar as liability under any law cannot be excluded, the Beneficiaries shall have no responsibility arising in respect of the information contained in this communication or subsequently provided by them or in any other way for errors or omissions (including responsibility to any person by reason of negligence). Investors should seek their own independent financial advice before making any investment decision and should consider the appropriateness of any advice.

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