New financial reports show a handful of Aboriginal groups gaining more income from mining royalties but others going backwards, while the sector as a whole remains the poor cousin.
New financial reports show a handful of Aboriginal groups gaining more income from mining royalties but others going backwards, while the sector as a whole remains the poor cousin.
The Njamal People’s Trust is a standout in Business News’ survey of Aboriginal charitable trusts.
It has achieved rapid growth in its royalty income over the past three years to a total of $48.9 million in the year to June 2023.
The Puutu Kunti Kurrama and Pinikura (PKKP) people have benefited after Fortescue Metals Group started paying it royalties.
The Yindjibarndi people have also received higher income, courtesy of an updated agreement with Rio Tinto.
Royalty payments to Aboriginal groups in Western Australia totalled about $370 million in the year to June 2023, according to research by Business News.
That’s up from $320 million the previous financial year.
While the total has increased, it remains miniscule compared to the billions of dollars in profit earned by big mining companies in WA, led by Rio Tinto, BHP, Fortescue and Hancock Prospecting.
It is also modest compared to the royalties paid to a handful of private companies in WA, courtesy of deals negotiated in the 1960s.
Family company Wright Prospecting was paid $361 million in mining royalties last financial year, about the same as that paid to all Aboriginal groups.
Hancock Prospecting was paid a similar amount while DFD Rhodes was paid $123 million and Perron Group was paid $45 million.
Of all the Indigenous trusts surveyed by Business News, the Nyiyaparli Charitable Trust continues to be the largest recipient of royalties.
Its financial report for FY23 disclosed ‘mining benefits and other receipts’ of $59.4 million; similar to what it received in the prior year.
It was followed by Eastern Guruma Charitable Trust No 2, which reported ‘contributions income’ of $54 million.
Its income has doubled from two years ago after Rio Tinto agreed to start paying royalties on three of its largest mines: Tom Price, Marandoo and Brockman.
These mines predated the Native Title Act, which Rio had for many years used as an excuse to not pay royalties.
The Njamal People’s Trust has reported a big increase in royalty income.
The lands of the Njamal people encompass several major mining operations, including Pilbara Minerals’ expanding Pilgangoora lithium mine and Fortescue’s new Iron Bridge project.
Its ‘contributions revenue’ has grown from $9.3 million in FY20 to nearly $49 million last year.
IBN Charitable Foundation, which manages royalties on behalf of the Yinhawangka, Banyjima and Nyiyaparli people, was paid $46.6 million from BHP’s Mining Area C operation; similar to the prior year.
Its annual report disclosed that BHP may seek reimbursement of some royalties after the big miner concluded it may have overpaid IBN over a number of years.
The Banjima Charitable Trust, which receives royalty payments from multiple BHP and Rio Tinto mines, including South Flank, reported ‘contributions income’ of $29.4 million.
The PKKP people, who were at the centre of the Juukan Gorge controversy, have two charitable trusts.
The Puutu Kunti Kurrama and Pinikura People Charitable Trust reported ‘contribution income’ of $25.2 million last financial year.
That is down from a peak of $31 million in FY21 but up from earlier levels.
A second entity, the Puutu Kunti Kurrama and Pinikura People’s Trust, was paid mining royalties of $5.4 million in FY23, up from $4.1 million in the prior year and almost nothing before that.
It stated that Fortescue started paying royalties during FY22 after commencing mining on PKKP land and has continued doing so.
This information has just come to light after the trust lodged its financial reports for FY22 and FY23 with the Australian Charities and Not-for-profits Commission only two weeks ago.
Another Aboriginal group that specified which company paid royalties was the Kariyarra People’s Trust.
It said Fortescue paid it $1.6 million in FY23, up slightly from the prior year.
However the trust’s total income was down because in the prior year, it was paid royalties by Wodgina Lithium.
The Yindjibarndi people have a different arrangement to other Aboriginal groups.
They are paid rail tariffs by Rio Tinto, which has iron ore railways passing through Yindjibarndi country.
Yindjibarndi Aboriginal Corporation was paid $9.9 million in rail tariffs last financial year while the Yindjibarndi People Community Trust was paid $7.4 million.
Both entities are due to be paid $10 million per year under an updated agreement signed last year with Rio Tinto, which also provides for increased commercial opportunities for Yinjibarndi businesses.
YAC’s constructive relationship with Rio contrasts with its long-running legal battles with Fortescue, whose Solomon mine is on Yindjibarndi land.
The Federal Court is currently assessing how much Fortescue should pay in royalties to YAC, with speculation it could be in excess of $500 million.
Another long-running dispute involves Rio Tinto and The General Gumala Foundation.
Business News revealed that Rio paid $125 million to Gumala last year after admitting to the underpayment of royalties from its Yandi mine.
Commenting on the dispute in its annual report, Gumala noted that “the final amount remains unresolved”.
Like IBN, the Gumala foundation collects royalties on behalf of the Yinhawangka, Banjima and Nyiyaparli traditional owners.
The Gumala foundation was paid $22.4 million in royalties in FY23, down from $32.5 million in the prior year.
It is WA’s oldest and largest Aboriginal trust, with total assets of $325 million.
For a full list of Aboriginal charitable trusts, go to: www.businessnews.com.au/bniq/native-title-charitable-trusts
