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"Equity is the purest form of consent": How First Nations inclusion in projects can create co-prosperity, lower risk and improve post-mine outcomes

31st October 2024

     

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The global race for critical minerals and renewable energy projects is an opportunity to create a model of shared prosperity between communities and the mining industry seeking to develop projects on First Nations lands.

Mark Podlasly, Chief Sustainability Officer, First Nations Major Project Coalition put it simply when outlining Canada’s approach, which he said is not only leading to increased First Nations inclusion and economic participation, but also helping de-risk the huge levels of investment required to meet demand.

Speaking as part of a panel of First Nations experts at the International Mining and Resources Conference and Expo (IMARC) in Sydney today, Mr Podlasly said: “The purest form of consent is equity. You can never argue you're not getting consent if you're an equity partner and in a position where you have some say in how the project would be built."

Jamie Lowe, Chief Executive Officer, National Native Title Council, said the Canadian “co-prosperity” approach was something Australian stakeholders are working towards, and the extraordinary scale of the demand for critical minerals that sit beneath First Nations land represents an opportunity to ensure a seat at the table.

“We are looking to shift the fiscal relationship between First Nations groups and the corporate and banking sectors and government when it comes to land access.

“In the energy transition that Australia is currently in the middle of, the transmission lines, the critical minerals and the renewable energy projects, governments are investing around $130 billion, but not even 1% of that is being invested in First Nations communities to actually be at the table when it comes to the energy transition,” he said.

“About 60% of Australia’s critical minerals are found on recognised First Nations lands, and in the renewable energy project space, the land mass that is going to be needed is around the size of the state of Victoria.

“Issues of land access are going to go through the roof in the next 10 years-20-30 years.”

Kia Dowell, Chair, Gelganyem Group, also touched on the issues of land access, particularly in relation to how sites are handed back to communities.

Referring to the closure of the Argyle Mine in Western Australia, Ms Dowell said the model needed to shift from where currently land that has been accessed for projects is given back having been occupied, exploited and often damaged, with little or no rehabilitation and no lasting legacy or benefit to First Nations custodians.

“When we think about a new precedent for mine closure, we have a pretty firm view that until post-mining land use, the transfer of infrastructure and the mitigation of risk and liability meets Traditional Owners’ standards, from a cultural, economic, social and environmental perspective, then that mine cannot be closed, let alone relinquished.”

Ms Dowell said the situation was akin to a landlord renting out their home, and the renter deciding to do what they want with it, before handing it back in a state of disrepair.

“Imagine if you are a landlord, and I come in as a renter and decide to take all the walls out, and then I trash the house, leave and don’t pay rent and I expect you as the landlord to clean up the mess.

“I don’t think anyone would like to have that situation.

“What is happening at Argyle will establish a precedent. Our concern is that the precedent is not going to be high enough to satisfy the expectations of First Nations and of society in terms of the environment for generations to come.”

Mark Podlasly said one of the benefits of a co-prosperity approach in helping lower the risk for investors who may be deterred by the prospect of extended “lawfare”.

“It’s all about certainty. We have had investors come to Canada only to be told, ‘Oh, don’t invest in Canada because you’ll never get past the First Nations protests and you’ll be stuck in court for 25 years and you’ll never see a return’. That has become an issue, right to the top of the Federal Government, so now our Minister of Natural Resources has been taking Indigenous representatives on trade missions in Japan, in Europe, in the United States, to say, ‘look, speak to the native people directly!’

“About 175 of our Nations of Canada, or 30% of the total, hold the position that we want co-ownership and co-prosperity.

“Our perspective on this is that equity ensures you are in a position to have a say in how a project is built, operated and closed.”

Speakers agreed that by adopting successful approaches from Canada and other parts of the world, Australia can establish a framework that prioritises consent, respect, and shared prosperity in the energy transition. This collaborative approach aims to enhance investment certainty, reduce potential conflicts, and ensure positive outcomes for both the mining industry and First Nations communities.

Edited by Creamer Media Reporter

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