Peru wants mining companies to help build railway to Pacific coast
Reuters | August 25, 2021 |

Harbour in San Juan de Marcona, Peru. Credit: Wikimedia Commons

Peru is asking help from mining companies Las Bambas, of China’s MMG Ltd, and Grupo Mexico’s Southern Copper to build a rail system from a mineral-rich Andean zone to the country’s central Pacific coast, Mining Minister Ivan Merino said in an interview.


Representatives of both companies said they were open to discussing participation in the railroad, which would be used to transport both commodities and people. Peru is already the world’s No. 2 copper producer, and the country’s new government want to further develop the sector.

The railway, in the technical evaluation stage and with construction scheduled to start in 2023, would start in Cusco or Apurimac and go to the port of Marcona, Merino told Reuters in an interview late on Tuesday.

PERU’S SOUTHERN ANDEAN REGION HAS LARGE MINES SUCH AS MMG’S LAS BAMBAS AND GRUPO MEXICO’S LOS CHANCAS

“The cost of the project is being evaluated,” the minister said, adding that the train should be ready to roll in 2028.

Peru’s southern Andean region has large mines such as MMG’s Las Bambas and Grupo Mexico’s Los Chancas.

Las Bambas produces an average 350,000 tonnes of copper per year and Los Chancas is a $2.6 billion project, currently in the environmental impact study phase. Southern Copper plans to produce 100,000 tonnes of copper per year at the site.

“They are part of the project,” Merino said.

Asked about the plan, Southern Copper Vice President of Finance Raul Jacob said that he had discussed the train proposal with Merino.

“We consider it an interesting project that must be carefully evaluated,” he told Reuters in a written message.

MMG ‘s corporate affairs manager, Maggie Qin, said in an email that Las Bambas is aware of the railway plan.

“We are willing to work closely with the government and help it when and where it is needed,” she said.

Australia-based MMG is a subsidiary of Chinese state-owned enterprise China Minmetals Corp.

(By Marco Aquino and Hugh Bronstein)

Peru will seek to tax miners more when prices high
Reuters | August 26, 2021 | 

Guido Bellido. Credit: Wikipedia

Peruvian Prime Minister Guido Bellido asked Congress on Thursday for legislative powers for the executive on tax matters as he seeks a first vote of confidence for the new cabinet of leftist president Pedro Castillo.


Bellido said that the government also plans to tap the excess profits of mining companies at times of high international prices of raw materials. Peru is the world’s second largest copper producer and mining is the engine of the Andean country’s economy.

(By Marco Aquino and Aislinn Laing)

BHP turns to electric pickups as miners seek emissions cuts

Bloomberg News | August 24, 2021 | 

Miller Technology’s Relay electric vehicle. Credit: Miller

BHP Group and Mitsubishi Corp. will deploy electric pickup trucks and fast-charging units at an Australian coal mine to test technology that could aid the challenging task of cutting the sector’s greenhouse gas emissions.


The BHP Mitsubishi Alliance joint venture, Australia’s top coal producer, will initially use two of Canadian firm Miller Technology Inc.’s Relay trucks to transport workers at the Broadmeadow mine in Queensland. The vehicles — which can be juiced up in about 20 minutes for a 10-hour shift — will be backed by Tritium Pty Ltd. chargers that are adapted for use in harsh mining environments.

Miners are beginning to test out options to replace their vast diesel-powered fleets, including pickups and excavators, with zero-emissions alternatives, a step that could assist in curbing the industry’s sprawling climate footprint. Fortescue Metals Group Ltd. is adding hydrogen fuel-cell buses, while BHP, Vale SA and Rio Tinto Group have challenged suppliers to speed up development of large electric haul trucks.

Eliminating all combustion-engine vehicles at mines would require major investment and only tackle a portion of their pollution. Use of diesel, including by mining equipment, accounts for about 40% of BHP’s so-called scope 1 and 2 greenhouse gas emissions, the company said in its most recent annual climate report.


“The new electric transporters are a major step toward safer and more sustainable underground mining,” BMA President James Palmer said in a statement. The Relay trucks will replace diesel vehicles at the mine, and BMA plans a broader fleet replacement program that will eventually retire its entire diesel fleet.

Brisbane-based charger manufacturer Tritium, which in May reached an agreement to go public via a merger with a special purpose acquisition company, sees further opportunities to supply charging equipment to miners.

The industry will need “charging technology that is sealed to protect against sediment, dust and moisture, and rated to operate in harsh conditions,” Jane Hunter, Tritium’s chief executive officer, said in a statement.

BHP is seeking to lower greenhouse gas emissions from its own operations — a small fraction of the total — by almost a third by 2030 and to zero by 2050. The company last week agreed to split off its oil and gas unit to accelerate a retreat from fossil fuels, and is working with customers to reduce emissions.

(By James Thornhill)

BHP risks two notch downgrade on oil asset sale

Reuters | August 24, 2021 | 

Credit: BHP

BHP Group is at risk of a two notch downgrade that would provoke its lowest ever credit rating as the sale of its petroleum business raises the miner’s dependence on its major business of iron ore, S&P Global said on Tuesday.


BHP has agreed to hive off its petroleum business to Woodside Petroleum Ltd in a nil-premium merger, in return for new Woodside shares which will go to BHP shareholders, who will own 48% of the enlarged group.

The sale will reduce BHP’s portfolio diversity and will raise its dependency on a single asset, the agency noted.

S&P Global said it was placing ‘A’ long- and ‘A-1’ short-term ratings on BHP, as well as the ‘A’ issue rating on the group’s senior unsecured notes on CreditWatch with negative implications.

That means BHP’s rating could fall to BBB+, which would be its lowest since it was first rated in 1995.

“The CreditWatch placement indicates that we could lower our ratings on BHP by up to two notches in the coming months, based on our updated review of the strength of the group’s business risk profile, if the divestment of its petroleum assets takes place as proposed,” it said in a note.

(By Melanie Burton; Editing by Krishna Chandra Eluri and Jacqueline Wong)

WANT SOME CHEESE WITH THAT WHINE

Royalty bill will put Chile’s private miners out of business, trade group says
Reuters | August 25, 2021 | 

Diego Hernández, President of Sonami and a former Codelco CEO. (Image courtesy of Codelco via Flickr)

Chile’s sprawling mining sector believes a royalty bill under discussion in Congress could shut down the country’s private miners as currently written, a senior mining executive told lawmakers on Wednesday.


The controversial legislation has gained momentum this year as prices of the red metal – critical for its use in construction and automaking industries – have soared amid a nascent global recovery following the coronavirus pandemic.

The bill, approved by the Chamber of Deputies and now under review in the Senate, would slap a 3% royalty on sales of copper that would increase sharply alongside rising prices.

Diego Hernández, president of the National Mining Society (Sonami) – an umbrella group for Chile’s mining sector – said in a presentation Wednesday to Senators that the rates under consideration “are exaggeratedly high … in practice it would make private mining impossible.”

PROPONENTS OF THE BILL SAY PROCEEDS FROM THE PROPOSED ROYALTY ARE URGENTLY NEEDED TO UNDERWRITE SOCIAL PROGRAMS

Hernandez said the bill was also regressive “since it affects less competitive mines most and does not account for the for the heterogeneity of Chilean mines.”

Chile, the world’s top copper producer, has a vast array of copper mines of varying sizes, productivity and ages, complicating the task of creating a tax scheme that does not unfairly disadvantage one over the other.

Proponents of the bill nonetheless say proceeds from the proposed royalty are urgently needed to underwrite social programs for Chileans suffering from the coronavirus pandemic.

The administration of center-right President Sebastian Pinera has warned of the potential economic and unemployment related impacts of the bill, and has questioned its validity, saying it believes such legislation must originate from the executive branch.

(By Fabian Cambero and Dave Sherwood; Editing by Sandra Maler)

World’s largest trona deposit emits enough methane to power 1m homes

MINING.COM Staff Writer | August 26, 2021 |

The Green River Basin region, pictured, hosts the world’s largest natural deposit of trona. (Image by Haddenham Cabin, Wikimedia Commons).

In a world-first, methane emissions from trona mining activities were captured by a satellite operated by GHGSat, a Canadian company that specializes in high-resolution greenhouse gas monitoring from space.


The satellite imagery shows emissions from the Green River Basin in Wyoming — the location of the largest natural deposit of trona from which 18.1 million tonnes of the mineral were extracted in 2019 and which supplies around 90% of the soda ash used in the United States.

Trona is a sodium carbonate compound extracted from underground mines and processed into soda ash. It is mostly used to manufacture glass for the automotive and construction industries and it is also the raw material for baking soda, laundry, and cleaning products used in the manufacture of cloth and paper.

WHEN TRONA ORE IS EXTRACTED FROM UNDERGROUND MINES, THE FRACTURING OF THE ROCK RELEASES METHANE

When trona ore is extracted from underground mines, the fracturing of the rock releases methane, which must be vented for safety reasons. While soda ash can be manufactured synthetically, about 35% of the world’s supply comes from natural sources.

Zooming into the Green River Basin, GHGSat’s satellite detected and measured methane emissions with an estimated rate of nearly 950kg/h. Whilst smaller than the average emission rate from coal mines observed over the last six months, if captured and processed into natural gas, the emission level measured could supply electricity for a year to approximately 1 million homes.

In the company’s view, the volume of methane measured presents a potential opportunity for mining operators in setting up an investment structure, by converting methane emissions into renewable energy.

“This first trona mine satellite observation has prompted GHGSat to monitor these sources of methane to help industrials and governments understand their emissions,” the Quebec-based firm said in a media statement.

“Both the UN Global Methane Assessment 2021 and the recent IPCC Climate Report have highlighted the rapid increase in methane emissions in recent years – with scientists attributing between 30 and 50% of the current rise in global temperatures to this potent greenhouse gas. Reducing methane is now one of the quickest actions we can take to curb global warming.”

PHILOSOPHER'S STONE

How nature recycles organic material to create diamonds

MINING.COM Staff Writer | August 24, 2021 \

(Reference image from Pxfuel).

A new study published in the journal Scientific Reports found that the Earth’s deepest diamonds are commonly made up of former living organisms that have been recycled more than 400 kilometres below the surface.


According to the paper produced by researchers at Australia’s Curtin University, both diamonds found in oceanic rocks and the so-called super-deep continental diamonds share a common origin of recycled organic carbon deep within the Earth’s mantle

The document states that Earth’s engine turns organic carbon into diamonds many hundreds of kilometres below the surface and then ballooning rocks from the deeper mantle, called mantle plumes, carry the diamonds back up to the Earth’s surface via volcanic eruptions.

THIS RESEARCH PROVIDES A MODEL THAT EXPLAINS THE FORMATION AND LOCATIONS OF OCEANIC, SUPER-DEEP CONTINENTAL AND LITHOSPHERIC DIAMONDS

“While recycling is becoming a modern-day necessity for our sustainable survival, we were particularly surprised to learn, through this research, that Mother Nature has been showing us how to recycle with style for billions of years,” Luc Doucet, lead author of the study, said in a media statement.

Doucet and his team reached these conclusions by analyzing the carbon isotopic compositions of three major types of diamonds, namely, oceanic, super-deep continental and lithospheric diamonds, all of which are formed at different levels of the mantle with a varying mixture of organic and inorganic carbon.

“This is the first time that all three major types of diamonds have been linked to mantle plumes, ballooning hot rocks driven by plate tectonics and the supercontinent cycle from deeper Earth,” co-lead author, Zheng-Xiang Li, said in the press brief.

For the scientists, this research not only provides a model that explains the formation and locations of the three types of gemstones, but it also helps to understand the planet’s carbon cycle, while at the same time having the potential to unlock more secrets of the Earth’s dynamic history through tracking the past locations of mantle plumes and superplumes. In their view, the latter can be achieved by mapping out the distribution of both continental and oceanic diamonds.

One mystery remained unsolved, though, and that is the reason why diamonds formed in the so-called ‘mantle transition zone,’ 400 to 600 kilometres deep, utilized recycled organic carbon only.

“This might have something to do with the physical-chemical environment there”, Li said. “It is not uncommon for a new scientific discovery to raise more questions that require further investigation.”

Petra sells two rare diamonds for $13.5 million

Cecilia Jamasmie | August 25, 2021

The 342.92 carat Type IIa white diamond. (Image courtesy of Petra Diamonds.)

South Africa’s Petra Diamonds (LON: PDL) has sold its recently recovered 342.92-carat Type IIa white diamond and an 18.30-carat Type IIb blue diamonds for a combined $13.5 million.


The company said it will receive upfront payments of $10 million for the white stone and $3.5 million for the blue stone, both recovered at its iconic Cullinan mine.

The buyer is a partnership between Petra itself and the South African subsidiary of Stargems Group, an international and vertically integrated diamond company, which will cut and polish the stones.

TYPE II DIAMONDS ARE FOUND LESS FREQUENTLY AND ARE MORE VALUABLE THAN TYPE I DIAMONDS, AS THEY HAVE NO MEASURABLE NITROGEN IMPURITIES.

“We are delighted that both stones will be manufactured in South Africa, and it is fitting that we will be working with Stargems, who specializes in the sourcing and supply of the finest diamonds to customers across the world,” chief executive Richard Duffy said in the statement.

Petra fetched in March $12.2 million for a 299.3-carat Type IIA white diamond. That meant it obtained $40,701 per carat, which exceeds the $34,386/ct received for the 424.89-carat “Legacy of the Cullinan Diamond Mine” in May 2019.

Type II diamonds are found less frequently and are more valuable than Type I diamonds, as they have no measurable nitrogen impurities.

Type IIb blue diamonds are so rare that their age has not been established. Recent studies on minerals trapped inside these diamonds imply that they are among the deepest-formed diamonds ever found, created at depths in excess of 500km below the Earth’s surface.

Cullinan is known as the birthplace of the famed 3,106-carat Cullinan diamond, which was cut to form the 530-carat Great Star of Africa.

It’s also the world’s most important source of blue diamonds, such as the 39.34-carat stone Petra found in April and which sold for $40.2 million last month. It was the company’s highest price ever for a single stone.

In era of green mining, even a zero-carbon project won’t do
Bloomberg News | August 26, 2021 

Image: Nussir ASA

In northern Norway, deep inside the Arctic circle, Nussir ASA aims to build what it hopes will be the world’s first zero-carbon mining operation. But the company planning to buy its copper has gotten cold feet over other potential environmental concerns.


Aurubis AG, one of the world’s largest copper smelters, terminated a provisional agreement to buy raw materials from Nussir after opposition from local indigenous groups, the company said on Thursday. At issue, among other things, is the impact on the local reindeer.

“This is not lip service for Aurubis,” Daniela Kalmbach, a spokeswoman for the Hamburg-based company, said by phone. “We know that Nussir have made several efforts with the community, but we still see potential for this aspect to be considered even more closely.”

The episode is the latest example of how projects with a focus on sustainability are coming are coming under increasing scrutiny by clients and investors as concerns over businesses’ impact on the environment grow.

In April, the Nature Conservancy started an internal review following concerns that its sale of carbon credits was meaningless. A string of recent “carbon-neutral” natural gas deals inked by companies including TotalEnergies SE has been scrutinized for similar reasons.

For Nussir’s mine in Norway, the issue isn’t the zero-carbon claims of the project itself, but rather other concerns related to sustainability at the site.

“The Nussir copper mine will be built to the highest environmental standards,” company Chief Executive Officer Oystein Rushfeldt said by email, adding that the project has the support of local authorities and will benefit indigenous groups through work opportunities.

Nussir’s ambition to become a fully electrified, zero-carbon mining operation centers on its use of Norway’s abundant hydroelectric power, as well as a fleet of battery-powered heavy machinery. But critics in the local Sami population have fought the project, arguing that mining will wreak havoc on local wildlife and the community depending on it.

“There was great support by the local community in north Norway in general, and the project was fully approved,” Aurubis’s Kalmbach said. “Nevertheless, there was a smaller group of the indigenous Sami population who were very critical, both of the environmental impact and the potential impact on the reindeer population.”

(By Mark Burton, with assistance from Laura Millan Lombrana)

Centerra units file motion seeking $1m a day in penalties against Kyrgyzstan govt

Henry Lazenby | August 26, 2021 |

Press tour to the Kumtor mine held on May 28, 2021.

 (Image courtesy of Kumtor Gold Company.)

Two units of Canada’s Centerra Gold (TSX: CG) have filed a motion in a US Bankruptcy Court seeking penalties of $1 million a day against the Kyrgyzstan government, related to the May seizure of the Canadian company’s Kumtor gold mine.


The company’s Kumtor Gold Company (KGC) and Kumtor Operating Company CJSC (KOC) lodged the motion in the US Bankruptcy Court for the Southern District of New York.

The motion alleges the Kyrgyz government “blatantly and continuously” violates the court’s orders and has “continued and intensified” its efforts to deprive KGC and KOC of the protections afforded to them under Chapter 11 of the US Bankruptcy Code, much in the same way that it took over the mine.

THE SECURITY SERVICE IS INVESTIGATING POSSIBLE CORRUPTION IN THE DEAL THAT GAVE CENTERRA CONTROL OVER THE COUNTRY’S BIGGEST GOLD MINE

Centerra said in May KGC and KOC commenced bankruptcy proceedings following the nationalization of the miner’s Kumtor gold mine by the former Soviet republic. Also in May, the government seized control of Kyrgyzstan’s most significant foreign investment project in a move challenged by Centerra Gold through international arbitration.

The motion also seeks an order staying the Kyrgyz government’s efforts to dismiss the case.

The motion alleges “continued and willful” violations of the automatic stay afforded by the Bankruptcy Court.

These include continued Kyrgyz court proceedings that seek to change KGC and KOC’s corporate resolutions illegally; the maintenance of the preliminary injunction barring KGC and KOC legal counsel and various individuals from participating in Kyrgyz court proceedings; the extension of the mandate of the so-called temporary manager; the termination of all KGC and KOC contracts with the Kyrgyz government and its related entities; and, laying the groundwork for the conversion of the Kyrgyz government’s environmental and tax claims against the KGC and KOC into equity with the effect of giving the Kyrgyz government complete ownership and control over the KGC and KOC.

Reuters reports the Kyrgyz state security service and prosecutors had said earlier this month they had established enough evidence to press on with removing Centerra from the Kumtor gold mine.

The security service is investigating possible corruption in the deal that gave Centerra control over the country’s biggest gold mine and subsequent amendments to the agreement.

Centerra denies the allegations.

Attorneys for KGC and KOC will present the motion to the Bankruptcy Court hearing to be held on September 15.

Centerra’s CEO, Scott Perry, said earlier this month Centerra remained “financially strong” with solid performance at its other operations three months following the Kyrgyzstan government’s seizure of the Kumtor mine.

At C$9.40 per share, Centerra’s Toronto-quoted shares trading in Toronto are down 43.2% over the past 12 months, capitalizing it at C$2.79 billion ($2.2bn).

ECOCIDE

Dust at BHP’s iron ore mines poses health hazard

Reuters | August 26, 2021 | 

BHP’s Western Australia Iron Ore operations involve a complex integrated system of seven mines, more than 1,000 kilometres of rail and two separate port facilities. 

(Image courtesy of BHP)

High levels of dust at two of BHP Group’s iron ore mines in Western Australia are impairing the health of workers and nearby residents, a union said this week, as BHP said it had undertaken a raft of measures to limit dust in the arid region.


The state’s environmental regulator this month began a review into elevated levels of airborne dust at BHP’s Whaleback and Newman mines in the Pilbara, as part of a review into BHP’s licence conditions and public submissions closed this week.


The review will be undertaken over the second half of this year and could result in changes to BHP’s license conditions. The mines are some 1 065 km (662 miles) north east of Perth.

A survey of current or former residents and mine workers who spent a significant amount of time in the community found 80% said the dust had affected their lives, according to a submission by the Western Mine Workers Alliance.

Of those, 82% said they had experienced adverse health affects, while others said they had suffered property damage and impacts to their lifestyle due to dust.

“All industry has some impact on the local environment,” said Brad Gandy, state branch secretary of the Australian Workers Union, which is part of the alliance.

“The problem is how this impact is managed, and it is clear that dust emissions are at levels that seriously affect the health, wellbeing and lifestyles of the Newman community.”

BHP said in a statement that it prioritises the health and safety of its employees and host communities, and was committed to managing our dust levels in Newman.

“Air quality is complex and the majority of elevated dust events in Newman occur in conjunction with certain weather conditions,” it said.

Dust control measures across the sites include using dust suppress sprays, water trucks and revegetation programs.

It is spending $230-million over the next five years to further improve air quality and implement dust mitigation work to keep dust levels as low as possible, it said.

(By Melanie Burton; Editing by David Holmes)

BETTING ON H2

Rio Tinto, Sumitomo to assess hydrogen plant at Yarwun refinery

Cecilia Jamasmie | August 24, 2021 | 

Yarwun alumina refinery in Gladstone, Queensland. (Image courtesy of Rio Tinto.)

Rio Tinto and Sumitomo Corporation announced on Tuesday they will jointly study the construction of a hydrogen pilot plant at Rio’s Yarwun alumina refinery in Gladstone, Australia.


Sumitomo had already been carrying out studies into building a hydrogen plant but hadn’t chosen a location. Rio, in turn, recently started a feasibility study into replacing natural gas with hydrogen in the alumina refining process.

If the partners choose to proceed, the pilot plant would produce hydrogen for the Japanese miner’s Gladstone Hydrogen Ecosystem project, announced in March, which is also located in Queensland’s Gladstone, a traditional coal and gas hub.


GREEN HYDROGEN — PRODUCED BY STRIPPING THE GAS FROM WATER USING ELECTROLYZERS POWERED BY WIND AND SOLAR — IS SEEN AS KEY TO ELIMINATING EMISSIONS FROM THE INDUSTRIAL SECTOR

Green hydrogen — produced by stripping the gas from water using electrolyzers powered by wind and solar — is seen as key to eliminating carbon emissions from the industrial sector.

Most Australian mines are already transitioning to renewable power and either turning to or expanding their electric vehicles fleets. Hydrogen is the next frontier.

“Reducing the carbon intensity of our alumina production will be key to meeting our 2030 and 2050 climate targets,” Rio Tinto Australia chief executive Kellie Parker said in the statement. “There is clearly more work to be done, but partnerships and projects like this are an important part of helping us get there.”

Energy hungry regions, particularly north-east Asia and Europe, lack the natural resources to generate large scale clean energy. This is particularly true in Japan, where nuclear energy has become politically and practically toxic.

The answer, as the country has very publicly committed to, is to transition to 100% green ammonia, which is the demand the growing number of large-scale green hydrogen projects in Australia are looking to meet

Green steel? Look to hydrogen as the answer, BNEF says
Bloomberg News | August 25, 2021 | 

Stock image.

Hydrogen made from clean power will be the cheapest way to bring emissions from steel production near zero by 2050, according to a BloombergNEF report.


While making green steel with hydrogen requires a price premium now, the process will likely be cheaper than coal- or natural gas-based production by mid-century, though that would require building new plants, BNEF said.

Geography will also determine the most cost-effective way to produce green steel. A country with abundant hydrogen supplies could make it the dominant fuel for steel production, while a nation rich in hydropower or another clean energy source could directly electrify steelmaking through a process called molten oxide electrolysis, BNEF said.

Other technologies to decarbonize steel include recycling, carbon capture, alternative iron-making processes and carbon offsets. A combination of these will likely be needed on a global scale, BNEF said.

“We expect that the cost of many of these technologies can fall by realizing economies of scale and greater efficiency,” BNEF said.

(By Yvonne Yue Li)

Rio Tinto yet to pay compensation over sacred site destruction
Reuters | August 26, 2021 |

Juukan Gorge cave sites seen before the destruction. (Screenshot via YouTube.)

Mining giant Rio Tinto is yet to pay compensation to the Aboriginal group whose ancient rock shelters it destroyed for an iron ore mine in Western Australia last year, company officials told a parliamentary inquiry Friday.


The incident last year destroyed the historically and culturally significant site at Juukan Gorge in the Pilbara region that showed evidence of human habitation 46,000 years ago into the last Ice Age.

The destruction created public outrage that led to a dramatic overhaul of Rio’s leadership and a review of the Australian laws that are supposed to protect significant sites of the world’s oldest living culture.

An interim report from a federal parliamentary inquiry in December said Rio should pay restitution to the Puuti Kunti Kurrama and Pinikura people (PKKP) with the final report and recommendations due in coming months.

The head of Rio’s Australian operations, Kellie Parker, told the inquiry on Friday the company was committed to “doing the right thing” around paying restitution but said that details around the financial component of any compensation were subject to a confidentiality agreement at the PKKP’s request.

Rio Tinto has rehabilitated parts of the Juukan Gorge and is working to restore the shelters in a structurally sound way, she said.


THE WORLD’S BIGGEST IRON ORE MINER DOES NOT PAY ROYALTIES TO THE WINTAWARI GURUMA FOR THREE OF SIX MINES IT OPERATES ON THEIR ANCESTRAL LAND

More broadly, Rio has moved responsibility for company relationships with traditional owners and mining near significant sites to operational managers, rather than the company heritage division. It has also committed to review mining plans around all areas of significance and “modernise” agreements with traditional owners, Parker said, without clarifying whether this could include backpayments for historic royalties.

Rio Tinto does not pay royalties to traditional owners for some mines where mining began prior to the native title act in 1993.

The world’s biggest iron ore miner does not pay royalties to the Wintawari Guruma for three of six mines it operates on their ancestral land, even though those mines are operational today, said Tony Bevan, a director at the Wintawari Guruma Aboriginal Corporation.

The miner posted record half year earnings of more than $12 billion in July.

WGAC want royalties to be considered as part of a modern agreement as well as compensation for heritage destruction and an ability for them to visit their traditional lands for which access is currently denied.

News emerged this year that Rio failed to protect WGAC artefacts that had been salvaged from its Marandoo iron ore project including 18,000-year-old evidence showing how people lived during the last Ice Age. Those and other artefacts were thrown in a Darwin rubbish heap.

Parker said that Rio was modernising agreements, with particular focus on social as well as economic contributions, but did not directly answer repeated questions by Senator Patrick Dodson about the number of mines that Rio doesn’t pay royalties on.

The PKKP said that it continued to work in good faith with Rio Tinto on the recovery and rehabilitation at Juukan Gorge as well as the development of a co-management model for their operations.

“The results on these will be the true test of our relationship with Rio Tinto,” it said.

PKKP said it wanted a relationship-based co-management system with Rio that reflected a shared commitment and respect for its rights, and participation in decision making throughout all phases of a mine, from development to closure.

(By Melanie Burton; Editing by Sam Holmes and Simon Cameron-Moore)