Chapter 29 Bauxite Mining Operations at Weipa

NorthernAustraliaLandandWaterScienceReviewfullreport
DRAFTOctober2009

BauxiteminingoperationsatWeipa,CapeYork:acasestudy Chapter291

29Bauxiteminingoperationsat
Weipa,CapeYork:acasestudy
VeronicaKlimenkoandRobinEvans,UniversityofQueensland,SustainableMineralsInstitute
r.evans@smi.uq.edu.au

BauxiteminingatWeipa,CapeYork.
Photo:CourtesyofRioTintoAlcan

DRAFTOctober2009


CONTENTS
1. KEYPOINTS ......................................................................................................................... 3
2. CONTEXT............................................................................................................................. 4
2.1 Historicalbackground............................................................................................... 4
2.2 Currentoperations ................................................................................................... 4
2.3 Indigenousrelations ................................................................................................. 5
3. ECONOMICSANDDEMOGRAPHICS.................................................................................... 6
3.1 EconomiccontributionoftheoperationtoWeipaandthesurroundingregion..... 6
3.2 TheoperationscontributiontoWeipasphysicalinfrastructure,serviceprovision
andhousing .............................................................................................................. 6
3.3 DemographicprofileofWeipaandsurroundingarea.............................................. 7
4. INDIGENOUSENGAGEMENT............................................................................................... 8
4.1 Indigenousemployment........................................................................................... 8
4.2 Businessdevelopment.............................................................................................. 9
4.3 Education................................................................................................................ 10
4.4 Multistakeholdercollaboration............................................................................. 10
5. BIOPHYSICALIMPACTS ..................................................................................................... 11
5.1 Landdisturbanceandrehabilitation ...................................................................... 11
5.2 Waterusage............................................................................................................ 11
6. FUTUREREGIONALGROWTH ........................................................................................... 12
6.1 Projectdevelopments ............................................................................................ 12
6.2 Regulatoryaspects ................................................................................................. 12
7. SUMMARY......................................................................................................................... 13
8. REFERENCES...................................................................................................................... 14

ListofTables
Table1PopulationofWeipa,Aurukun,Napranum,MapoonandNewMapoon,2006 .............. 7
Table2MedianHouseholdSize,Weipa,Aurukun,Napranum,MapoonandNewMapoon ....... 7
Table3Weeklyincome,Weipa,Aurukun,Napranum,MapoonandNewMapoon,3 ................ 8

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1. KEYPOINTS
BauxitehasbeenminedatWeipaforthelast45years,andoperationsarelikelyto
continueforatleastanother40.Demandprojectionsforaluminiumcontinuetobestrong,
andthirdpartydevelopmentstoboththeNorthandSouthofcurrentRioTintoAlcan(RTA)
operations,coupledwithRTAsownexpansionplans,havethepotentialtosignificantly
increasebauxiteproductionfromthisregion.
ThecurrentRTAoperationistheprimaryeconomiccontributortoWeipaandthewider
region,intermsofdirectandindirectemployment,infrastructure,housingandservice
provision.ThemajorityofthebauxiteproducedisalsorefinedwithinQueenslandat
Gladstone,providingfurthereconomiccontributionstothatareaandtheStateingeneral.
Weipaspopulationbaseisbecomingmorediversified.Ifexpectedpopulationtrends
eventuate,anageingpopulationwillincreasepressureonhealthservicesandagedcare
facilities,addingtocurrentpressureonhousingandchildcarefacilities.TheTown
Authorityisnotarecognisedlocalgovernmentbody,andisthereforenoteligibleto
receivegovernmentfundingtosupportanincreasinglyexpandingportfolioofsocial
infrastructure.
RioTintoAlcan(RTA)hasmadeaconcertedefforttoimproverelationswithIndigenous
peoplesincethepassageoftheNativeTitleAct1993.TheWesternCapeCommunitiesCo
existenceAgreementrepresentsformalrecognitionofIndigenouslandrightsandcultural
ties,andunderpinsthecompanysfocusonprovidingincreasedemploymentandbusiness
developmentopportunities.
GreatercollaborationbetweenthecompanyandIndigenouscommunitieshasseen
improvementsintherateofIndigenousemploymentonsite.RTAhaspositioneditselfasa
facilitatorofsmallbusinesses,providingsupporttofledglingenterprisesratherthan
throughdirectcontribution/investment.AspartofabroaderMineralsCouncilofAustralia
initiative,RTAhasalsosignedaRegionalPartnershipAgreementtoaddressunderlying
socioeconomicimpedimentstoeconomicengagement.

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2. CONTEXT
2.1 Historicalbackground
ThereddishcliffsoftheCapeYorkPeninsulacoastlinewerenotedbyMatthewFlindersas
earlyas1802.Thefirstgeologicalreconnaissanceoftheareaacenturylaterconfirmedthe
presenceofbrownpisoliticironstoneoutcrops(1,p.190).However,itwasnotuntilHarry
Evans,accompaniedbytwolocalAboriginalmen(2,p.11),wasprospectingforoilonthe
peninsulain1955thattheexistenceandtrueextentoftheWeipaBauxiteProvincewere
rediscovered(1,p.189).
Thediscoverycameinaneraofpostwarindustrialisationandrestructuring.Increasing
consumerdemandandtherelativelyhighpricesofcompetingmetalssuchascopperandtin
resultedinsignificantgrowthinaluminiumuse(1,p.189)inthepostwaryears.Theswift
transitionfromdiscoverytodevelopmentwasdrivenbythestrategicimperativeforAustralia
tosetupanindependentaluminiumindustry(3,p.209).In1957theCommonwealth
AluminiumCorporation(Comalco)wasformedandaSpecialAgreementActenactedbythe
QueenslandGovernmentforthelargescaledevelopmentofthebauxitedeposit.Underthe
termsoftheCommonwealthAluminiumCorporationPtyLtdAgreementAct1957(Qld),
Comalcowasgrantedan84yearleasewithanoptiontoextendforafurther21years.The
initialleaseareacovered6162squarekilometres,butsubjecttothetermsoftheAgreement
wasreducedto2590squarekilometresin1977(1,p.190).
TheoperationpassedunderthemanagementofRioTintoAluminiumin2006afterRioTinto
boughtouttheremainingminorityshareholdersinComalcoin2000.Morerecently,itbecame
aRioTintoAlcanoperationafterAlcanandRioTintoAluminiumjoinedforcesinlate2007(4).
2.2 Currentoperations
OperationsatWeipaincludethemining,crushingandwashingofbauxite,andorehandling
throughportfacilitiesfortransporttoaluminarefineries.Sincethefirstyearofcommercial
productionin1964when453,365tonnesofbauxitewhereminedandshipped,annual
productionhasincreasedto19.42milliondryproducttonnesin2008(5).Theoperationhas
becomeoneofthelargestbauxiteminingsitesintheworldandisajewelinRioTintoscrown
(6,p.9).DevelopmentoftheSouthoftheEmbleyProject,whichwillreplaceproductionfrom
thedepletedEastWeipareserves,isexpectedtoextendthelifeoftheoperationby40years
andliftannualproductionto35milliontonnes(7).In2007,thecompanyscombinedmining
leaseextendedovera3,860squarekilometrearea(8,p.i).Weipabauxiteissenttoanumber
oflocationsglobally,thoughpredominantlytoRTAsYarwunandQueenslandAluminaLtd
refineriesinGladstone.
DRAFTOctober2009


2.3 Indigenousrelations
TheestablishmentoftheminingoperationatWeipaoccurredwithlittleconsultative
involvementoflocalAboriginalpeopleandincludedtheforcedrelocationofthecommunityof
Mapoonin1963.Itwasnotuntil30yearslater,aftertheintroductionoftheNativeTitleAct
1993(Cth),thatComalcosoughttorecogniseAboriginalinterestsandrightsintheland,
formallyacknowledgedintheElyBauxiteMiningProjectAgreement(EBMPA)signedin1997
andtheWesternCapeCommunitiesCoexistenceAgreement(WCCCA)signedin2001
1
.
InitssubmissiontoaHouseofRepresentativesInquiryin1998,RioTintoadmittedthat
althoughthecompanyhadanestablishedcorporateaccountabilitypolicydevelopedunderthe
bannersofcorporatecitizenshipandgoodneighbours,thesepracticeswerenotuniversally
appliedinAustraliawherethenearcommunitywasAboriginal
2
.Toaddressthishistorythe
companydevelopedanAboriginalandTorresStraitIslandsPeoplespolicyin1995themain
tenetofwhichiscommitmenttoassistIndigenouspeopleattaineconomicindependence
throughdirectemploymentandthedevelopmentofsmallbusinessesthatcancontracttothe
companysoperations(9)
3
.
In1996,Comalcosoughttomodernise(10,p.241)itsrelationshipwiththeTraditional
OwnerssurroundingitsWeipaoperations.Theresultingmultilateralagreement,theWestern
CapeCommunitiesCoexistenceAgreement(WCCCA),wassignedin2001.Atthesigning
ceremonythecompanyapologisedfortaking40yearstoformallyrecogniseAboriginalland
connections(10,p.244).TheWCCCAprovidesforarangeofbenefitstotheTraditionsOwners
inreturnforlandaccess.UnderthetermsoftheIndigenousLandUseAgreement,sixty(60)
percentofanannual$2.5millionpaymentisplacedinlongterminvestments.Additionally,
RTAagreedtofundandrunemploymentandtrainingprograms,setupaculturalawareness
fund,transfertotheTraditionalOwnersownershipofapastoralpropertyandrelinquishtothe
governmentpartsofminingleasesnolongerinuseforreturntoAboriginalownership(11).
Thedocumentisprefacedbythepartiescommitmenttomutualrespectandrecognitionasa
functionoftheTraditionalOwnerssupportforRTAsfutureminingoperations.Italso
emphasisesthecompanyssupportandencouragementofcommunityeconomic
development,increasedIndigenousparticipationindecisionmakingprocessesandincreased
levelsofculturalawarenessamongtheworkforce.
In2003,anindependentreviewoftheWCCCAcommissionedbyComalcorevealedthatgood
progresshadbeenmadeintheimplementationoftermsrelatingtoemployment,internal
supportforlocalIndigenousbusinesses,culturalheritageprotection,andgovernanceand
administration,butthatmoreeffortwasneededtoincreasecommunityandemployee
knowledgeoftheAgreementanditsintent(12,p.104).Furtheraspectsofthecurrentstateof
IndigenousengagementwithRTAWeipaoperationsarediscussedinSection4.

1
TheoperationcurrentlyfunctionsundertwoAboriginallandaccessagreementstheElyBauxiteMiningProject
Agreement(EBMPA)signedin1997andamendedin1999,andtheWCCCA;aswellasthe1957SpecialAgreement
Act.
2
Ibid.
3
Formoredetails,seeRioTintosAboriginalpolicyandprogrammesinAustralia2009.
DRAFTOctober2009


3. ECONOMICSANDDEMOGRAPHICS
3.1 EconomiccontributionoftheoperationtoWeipaandthesurroundingregion
In2006,RTAsdirectcontributiontotheWeipaeconomyamountedto$316million.The
indirectorflowonimpactofitsoperations,theresultofpurchasesmadebyRTAandits
employeesinthelocaleconomy,wasestimatedat$48millioninthesameyear;addingtoa
totalcontributionof$364million.Puttingthisfigureintoperspective,accordingtoeconomic
modellingundertakenaspartofaCommunityBaselineStudycommissionedbyRTA,the
miningindustryaccountedforoverthreequarters(77%)ofWeipastotaleconomicoutputin
2006(2,p.iv).
EmploymentstatisticsprovideanotherindicatorofRTAseconomiccontributiontoWeipa.RTA
provided734jobsin2006,outofatotalof2,837jobsacrossallindustriesinthelocal
economy,orjustover25%.Takingintoaccounttheestimated1,711indirectlygeneratedjobs,
in2006RTAprovidedforemploymentequivalentto86%percentofalljobsinWeipa.Local
industriessuchasretailing,manufacturing,constructionandbusinessservicesareparticularly
reliantonmining.Thesefiguresindicatethatanywithdrawalordeclineoftheminingindustry
wouldhavefundamentalrepercussionsfortheWeipaeconomyandcommunity(2,p.iv).For
example,theGlobalFinancialCrisisoflate2008sawa60%dropinthepriceofaluminiumand
asimilardiveinaluminaprices.InApril2009RTAannounceda4milliontonnecutin
productionfromitsWeipaoperationtobeaccompaniedbythelossof100permanentjobs
(13).Whilstitisnotpossibletoidentifyhowmanyindirectjobswereaffected,amonthlatera
localnewsreportquotedamemberoftheTownAuthorityasindicatingthatrecentjoblosses
arecausinganexodusfromthetown(14).
3.2 TheoperationscontributiontoWeipasphysicalinfrastructure,service
provisionandhousing
UndertheCommonwealthAluminiumCorporationPtyLtdAgreementAct1957(Qld),the
establishmentandmanagementofthetownshipofWeipawasvestedinComalco,RTAs
predecessor,asituationthatremainslargelyunchangedtothisday.TheWeipaTown
Authority,representedbyaChair,threeelectedmembersofthecommunity,twoRTA
appointedmembersandoneTraditionalOwner,hasmanagedthetownonRTAsbehalfsince
1994(2,p.20).However,theAuthorityisnotrecognisedasalocalgovernmentarea,anissue
thatbecameparticularlyprominentduringtherecentfinancialcrisis,asWeipasstatusmade
theTownAuthorityineligibletoreceivestateandfederalstimuluspackages(14).RTAisthe
Authorityslargestratepayer,contributing$1.5millioninratesin2007.Inadditiontorates,
theoperationspentmorethan$3millionontownrunningcosts,includingoffice
administration,wages,townmaintenanceandrepairs(8,p.19).
ComalcofundedthevastmajorityofWeipasinfrastructure(15,p.4)andthetowncontinues
tobeheavilyreliantontheextensivemininginfrastructuresuchastheairport,roadnetworks,
aport,power,waterandseweragefacilities,andhousing(15,p.4).In2007RTAapprovedover
$30millionininfrastructureprojects(8,p.19)andin2008spent$19.8millionon
infrastructureupgradesofthepowerandsewagefacilitiesandlanddevelopment(5).The
companyisalsoamajorsponsorofcommunityservicesandmanagesanannualcommunity
investmentfund.Itoperatesachildcarefacility(2,p.60),fundsGeneralPractitionersunder
theFarNorthQueenslandRuralDivisionofGeneralPracticescheme(2,p.65),aswellas
supportingthelocalmedicalpracticewithabulkbillingsubsidy.
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PriortotheintroductionoftheWeipaAccommodationBenefitscheme,RTAownedthe
majorityofWeipasdwellings,whichnumbered1200in2007(2,p.74).Sincetheschemes
introduction,theproportionofRTAownedpropertieshasdeclinedfrom75%in2004to29%
in2008(5).TheWeipaCommunitySurveyundertakenaspartoftheCommunityBaseline
StudyrevealedthatlackofavailableandaffordablehousingisamajorissueaffectingWeipas
futuresustainability(2,p.80).Privatehousingandrentalpricesareextremelyhigh(2,p.93),
withnonRTAemployeesbeingthemostaffected.TheStudyconcludedthatunlessthetown
boundaryisexpanded,futuredevelopmentforresidentialandindustrialpurposeswillbe
limited(2,p.93).
3.3 DemographicprofileofWeipaandsurroundingarea
Accordingto2006Censusdata,thepopulationofWeipanumbered3029people.Itisa
younger,fastergrowingpopulation,andonethatearnsconsiderablymorethantheState
average(16),factorsreflectiveofthehighproportionofworkingageminingprofessionals.In
mid2007WeipawasreportedasQueensland'sfastestgrowingLocalGovernmentArea,upby
6.4%(17).Projectionsindicatethatby2016thepopulationofWeipawillincreasetobetween
3,610and4,080people(18).Whilsttheproportionofthoseaged2544isexpectedtoremain
thehighest,animportanttrendistheprojectedincreaseintheproportionofresidentsaged
65+.ThechangeinhomeownershipprovisionswillpotentiallyseemoreRTAemployeesretire
inWeipa(2,p.78).Theageingtrendcarriesimplicationsforfutureserviceprovision,suchas
healthandagedcarefacilities,andisanindicatorofWeipasevolutionfromapurelyworking
miningtownintoamorediversifiedcommunity.
TheproportionofWeipaspopulationwhoidentifyasIndigenouswas18.5%in2006,upfrom
15.2%inthe2001Census.ThisisincontrasttothepredominantlyIndigenouspopulationsof
thecommunitiesofAurukun,Napranum,MapoonandNewMapoon,locatedwithinclose
proximitytoWeipa,asshowninTable1below.
Table1PopulationofWeipa,Aurukun,Napranum,MapoonandNewMapoon,2006
Weipa Aurukun Napranum Mapoon NewMapoon
Total 3029 1138 921 262 381
Indigenous(%) 18.5 93.7 93.9 91.3 94.4
Source:AustralianBureauofStatistics,2006Census
ThestandardoflivingconditionsintheseWesternCapecommunitiescanbecharacterisedas
oneofeconomicandsocialdisadvantage,asshownbycomparisonofweeklyincomeand
medianhouseholdsizeinTable2andTable3below.Performanceacrosshealth,life
expectancyandeducationattainmentindicatorsislikewisewellbelowStateandnational
averages.
Table2MedianHouseholdSize,Weipa,Aurukun,Napranum,MapoonandNewMapoon
Average
HouseholdSize
2.8 5.7 3.9 3.4 4.3
Averagenumber
ofpersonsper
bedroom
1.1 1.9 1.6 1.4 1.7
Source:AustralianBureauofStatistics,2006CensusCommunityProfiles
DRAFTOctober2009


Table3Weeklyincome,Weipa,Aurukun,Napranum,MapoonandNewMapoon,3
Median
Weekly
individual
income
($/week)
1,013 219 226 230 207
Median
Weekly
household
income
($/week)
1,857 946 633 769 604
Source:AustralianBureauofStatistics,2006CensusCommunityProfiles
ComparedtothepopulationofWeipa,Indigenouspopulationintheregionisyounger,
projectedtogrowatafasterrate,withthehighestproportionofresidentsconcentratedinthe
015yearsagegroup(19)
4
.ThisisinlinewithIndigenouspopulationtrendsacrossAustralia
(20,p.65)andcarriessignificantpolicyandserviceprovisionimplications.
4. INDIGENOUSENGAGEMENT
4.1 Indigenousemployment
WhilstRTAhascontinuedtoincreaserepresentationoflocalIndigenousandotherIndigenous
personsinitsworkforce,itisrecognisedthatanumberofsignificantsocialbarrierscontinueto
affecttheworkreadinesslevelsofpeoplelivinginWesternCapecommunities.Thishas
requiredRTAtotakealongtermapproachtoemploymentandtrainingandimplement
strategiestargetingspecificcommunities,ratherthanadoptaonesizefitsallapproach.
Inrecentyears,RTAhasworkedcollaborativelywithstakeholdersacrosstheregiontodevelop
andimplementarangeofemploymentandtrainingprogramsaimedatlocalIndigenous
employment,leadershipdevelopment,increasedrepresentationoffemalelocalemployees
andtrainingprogramsthatprovideworkexposureandincreaselevelsofjobreadiness.These
includetheLocalAboriginalTraineeshipProgram,scholarships,employeesupportand
mentoringprograms,workreadinessinitiatives,andschooltoworkpathways.
Fosteringacollaborativeapproachwiththeaimofcreatingemploymentopportunitieshas
beenaneffectivestrategyforcreatingalocallybasedskilledIndigenousworkforce.A
partnershipapproachwithgovernmentagenciesandotherkeyregionalstakeholdersis
requiredtosuccessfullyaddressthesocialandeducationalbarrierstoenteringthe
mainstreamworkforce.AtRTAsWeipaoperations,thispartnershipapproachis
demonstratedthroughparticipationandengagementwiththeWesternCapeCollegeForum,
RegionalPartnershipAgreement(RPA),WesternCapeChamberofCommerce,WesternCape
CommunitiesandElyCoordinatingCommittees.
AspartofacommitmenttoincreasetheleveloflocalIndigenouspeopleemployedatthe
operation,RTAdevelopedtheDestinationsProgramin2007.Theprogramisatwoyearpilot
designedafterextensiveconsultationwithTraditionalOwners,currentandprevious
employeesfromAurukun,governmentdepartmentsandemploymentagencies,tospecifically

4
32.6%inAurukunin2006
DRAFTOctober2009


addressrecruitmentandretentionissuesofAurukunpeople(21).Theprogramisdividedinto
threestages:a13weekprevocationaltrainingprogrammeplacementconductedbythe
IndigenousownedandrunorganisationMyumaPtyLtdatCamoowealinQueenslandsNorth
West;a16weekworksamplingprogramme;followedbya16weekfixedtermcontract.The
programsupportstheWesternCapeRegionalPartnershipAgreementunderwhichall
stakeholderssuchasRTAandtheStateandFederalGovernmentshavecommittedto
achievingalocalIndigenousemploymenttargetof50newjobsayearforthenextfiveyears
commencingin2008(22).Whiletheprogramisstillinitsearlystages,ithasstartedtoshow
positiveresults.Thetargetisforupto60peopletoparticipateintheprogram(8,p.13)..
Aspartofthisoverallfocus,RTAoperatesaWorkplaceMentoringProgramwhichaimsto
improvenotonlyrecruitmentrates,butalsotrainingandretentionratesforIndigenousstaff.
Thishassupportedasignificantincreaseinretentionratesforstaffrecruitedthroughthelocal
Aboriginaltraineeshipprogram.In2008thesitewasnamedHostEmployeroftheYearinthe
fieldofdiversityattheCairnsRegionalGroupTrainingAwardsinrecognitionofitseffortsand
successintraininglocalIndigenoustraineesandapprentices(5).
Thoughbelowtheannualtargetof17.4%Indigenousemploymentofthetotalworkforce,at
109(13%),thenumberoflocalIndigenouspeople(thatispeoplewithculturalconnectionto
thelandonwhichRTAoperates)workingattheoperationin2007wasanincreaseuponthe
previousyear.In2008thatfigureroseto128,althoughstillshortofthetargetof140(5).
Meanwhile,totalIndigenousemploymentin2007increasedto156(18.9%),upfrom136(18%)
in2006(8,p.9).In2008thenumbersincreasedto181intotal,or19.8%oftheworkforce.
4.2 Businessdevelopment
UndertheWCCCA,subtrustshavethediscretiontoallocatefundstowardsestablishingor
supportinglocalIndigenousbusinesses.In2007RTAsupportedthetransitionoftheWeipa
MultiPurposeFacilitytoownershipbytheWCCCAMainTrust.Morerecently,underan
alliancearrangementwithRTA,theFacilitypassedintotheownershipofMapoon,Aurukun
andNapranumcommunitiesonbehalfofelevenTraditionalOwnergroupsintheregion,
becomingtheWesternCapeCentreLtd.TheCentreisanaccommodation,trainingand
conferencefacilitylocatedinWeipaandprovidesculturalawarenesstrainingforallemployees
andcontractorsintheregion,includingRTAsworkforce.In2009itwasthewinnerofthe
PremiersReconciliationAwardintheEmergingBusinesscategory(23).SinceRTAbeganits
culturalawarenessprogram,thenumberofemployeeswhohavereceivedtrainingnumbered
inexcessof1,100bytheendof2007(8).TheCentressuccessevidencesnotonlyRTAs
commitmenttoaculturallyattunedworkingenvironmentunderpinningeffortstoliftratesof
Indigenousemployment,butalsothepotentialforeconomiesofscaleincombining
employmentandbusinessdevelopmentinitiativesthatbenefitthecommunityatlarge.
TheaboveexampleevidencesRioTintoschangeinpracticeadoptedinthelate1990stoenter
intojointventuredevelopmentswithnewlyformedAboriginalenterprises(9).NanumTawap
LtdisanIndigenousbusinessincorporatedin2003underaJointVentureAgreementwiththe
QueenslandGovernment.ItoperatesasandquarryleasedunderaMemorandumof
UnderstandingfromRTAandisalsoinvolvedinsawmillingunderanarrangementwithRTA
andtheStateGovernmentwhichpermitsthebusinesstoselectivelyharvesttreesonleases
priortoclearingformining.Priorto2004,theclearedtimberwasburned.RTAssupportfor
theburgeoningIndigenousforestryindustry(24)(seealso25)isinlinewiththecompanys
focusonactivitiesthataresustainableafterRioTintohasleftthearea(9).Aswellas
providinganopportunitytoyieldcommercialvaluefromaresourcethatwaspreviously
wasted(26),thedevelopmenthascreatedtrainingandemploymentopportunitiesfor
DRAFTOctober2009


Napranumresidentsoutsidetheminingindustry.Providingavehicleforonthejobtrainingfor
IndigenouspeopleinWesternCapewasalsotheintentbehindtheestablishmentofWestern
CapeEarthmovingin2005.AcompaniontoNanumTawapLtdinthejointventurescheme,the
businessprovidesgeneralearthmoving,haulageandplanthireservices.Alongtermcontract
withRTAtohaulbauxiterejectsprovidesitscoreincomestream(27).In2006WesternCape
EarthmovingwastheEmergingBusinesscategorywinnerinthePremiersReconciliation
AwardsforBusiness.
AnotheraspectofRioTintosengagementpolicyisfindingmutuallyadvantageous
outcomes,asinthecaseofRTAenlistingTraditionalOwnerstocollectnativeseedsforits
rehabilitationprogram.Rehabilitationoflanddisturbedbyminingactivitiesisacrucialpartof
RTAsenvironmentalmanagementstrategy.Thereareanumberofmethodsofcollecting
providenceseeds,forwhichtheskillsandexperienceoflocalindigenouspeopleareactively
sought.Asthelargevolumeofseedrequiredfortheprogressiverehabilitationcannotallbe
gatheredlocally,someisgatheredfurtherafieldforthespecificspeciesrequired...In2008,
150TraditionalOwnersfromMapoon,Aurukun,NapranumandWeipacollected2tonnesof
seeds.Asteptowardscontributingtotheregionsbiodiversity,thecollectionwasasampleof
over40treeandshrubspeciesofculturalsignificanceforlocalIndigenouspeople(5).
TheWeipabauxitemineislocatedinaregionknownforitsnaturalbeautyandonerecognised
foritstourismpotential(28,p.2).Itisaregionthatparticularlylendsitselftothecultivationof
Indigenoustourism.WhilstRTAmanagementsupportsactivitiesthatgotoregionallongterm
sustainabilityafterminingoperationscease,thecompanyseesitselfasafacilitatorofbusiness
development,ratherthanadirectcontributorthroughtheprovisionoftrainingand/orfunding
ofIndigenousenterprises(15).
4.3 Education
RTAhasalsoengagedinthesphereofeducationandhasworkedcloselywiththeState
GovernmenttoestablishtheWesternCapeCollegetoimproveeducationaloutcomesfor
Indigenousstudents.In2007thiscollaborationwontheBusinessPartnershipcategoryofthe
PrimeMinistersQueenslandCommunityAwards.Thepartnershipfocusesonfosteringschool
toworktransitionandhasbeencreditedwithmakingasignificantcontributiontowardslifting
ratesofIndigenousschoolattendanceandperformance.Sincetheprogramsinceptionin2000
IndigenousnumbersatWesternCapeCollegeincreasedfrom160to450(29).
4.4 Multistakeholdercollaboration
Aswellaspursueinitiativeinternally,drawingontheprinciplesofthe2005Memorandumof
UnderstandingbetweentheMineralsCouncilofAustraliaandtheCommonwealth
Government,RTAhassoughttoengagewithotherkeystakeholdersintheregion.The
WesternCapeRegionalPartnershipHeadsofAgreementwassignedin2008.
DRAFTOctober2009


5. BIOPHYSICALIMPACTS
5.1 Landdisturbanceandrehabilitation
Bauxiteminingischaracterisedbyarelativelylargephysicalfootprintcomparedwith
metalliferoushardrockoperations.However,italsopresentsmoreopportunitiesfor
progressiverehabilitationofminedland.Attheendof2006,RTAreportedatotaldisturbance
ofalmost10,000hectaressinceminingcommenced,withapproximately9,000hectaresunder
rehabilitation(30).However,thisrepresentsarelativelysmallproportionofthetotalland
holdingof264,667hectares.Therehabilitationprocessaimstoreturntheminedlandbackto
nearpreminingconditions(ortoaconditionsuitableforalternativelanduseasagreedunder
theconditionsoftheWCCCA)(30).Thestatedlongtermtargetforrehabilitationisaratioof
disturbedtorehabilitatedareaofascloseto1:1aspossible.
TherecenttransferoftheAlcanGoveoperationtoRioTintoAlcanownershiphascreated
opportunitiesforcollaboration,andenabledthetwobauxiteminestoexploitsynergiesinthe
areaofenvironmentalmanagementandrehabilitation.Forexample,theWeipaEnvironmental
TeamhasdrawnuponGovesreputationforqualityregenerationandrepopulationof
rehabilitatedmineareaswithnativeplantstoresolvesomeseedingproblemsexperiencedin
thelastfewyears(31,p.1112).IncreasedeffortstoengagelocalAboriginalpeopleinseed
collectionisalsohavingapositiveimpactontheoperationsrehabilitationprogramaswellas
generatingbusinessopportunitiespursuanttoitsIndigenousengagementstrategyand
commitmentsunderWCCCA.
5.2 Waterusage
TheprimaryusesofwateratWeipaareforbauxitewashingoperations,haulroaddust
suppression(particularlyinthedryseason)andwatersupplytoworkforceandcommunities.
In2008,19,553megalitres(ML)ofwaterwasusedcomparedwith17,451MLin2007.
However,in2008RTArecycled14,902MLofwaterin2008,asignificantimprovementon2007
when10,633MLofwaterwasrecycled(5).
TheoperationsatWeipaarelocatedinaregionofwaterexcess,duetothetropicaland
monsoonalclimate.Theminehasmultiplesourcesofwatertodrawfrom,eachofwhichhas
itsowncostsandadditionalvaluesassociatedwithit.Thefourmainsourceswhichthemine
candrawfromaredecantwaterfromthetailingsdam;siterainfallrunoffcapturedinslots
andothersmallstoragesacrossthemininglease;shallowaquifersunderlyingthearea;andthe
deeperaquifersoftheGreatArtesianBasin.Availabilityofthedifferentsourcescanvary
duringtheyear,particularlythefirsttwo.ThesensitivityoftheshallowaquifersandtheGreat
ArtesianBasinhaspreviouslybeenidentifiedduringnormalenvironmentalriskmanagement
processes.ThishasbeenreinforcedbyengagementofRTAwithkeystakeholders,including
theGreatArtesianBasinCoordinatingCommitteeandtheWildernessSociety.Thelatterhave
focussedparticularlyontheconnectivitythatcanoccurbetweentheshallowaquifersandlocal
rivers.
ConsiderationofthesefactorsbyRTAhaveresultedintheestablishmentofaformalhierarchy
ofsources,whichdirectstheoperationtosourcefirstfromtailingsdams,thenslots,thenthe
shallowaquifers,andfinallytheGreatArtesianBasinaquifers.Ingeneral,thecostsassociated
withsourcingfromtailingsdamsandslotsarelessthanthosearisingfromoperatingborefields
fedbyundergroundaquifers.However,duetothelargeareaofthemininglease,thereare
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situationswhereitcouldbebothcheaperandmoreconvenienttosourcefromoneofthe
latter.Theestablishmentofthesourcinghierarchyeffectivelyplacesanimplicitvalueonthe
naturalsourcesofwater.InthecaseoftheGreatArtesianbasin,thefocusisonthelongterm
sustainabilityoftheresourceasithasaslowerrecharge.Theshallowaquifersrechargemore
quicklyduetotheclimate,butcanbelinkedmorecloselytotheriverecosystems.
6. FUTUREREGIONALGROWTH
6.1 Projectdevelopments
InJune2008,RTAannouncedamajorfeasibilitystudytodevelopanewbauxiteoperation,
SouthoftheEmbley,tobelocatedsouthoftheexistingWeipaoperation.Onceapproved,the
newminewillenabletotalannualproductiontoincreaseto35milliontonnes,expandingthe
currentoperationsminelifeby40years(32).Itisplannedthatthenewminewilleventually
replacetheexistingeastWeipamine.ThefeasibilitystudyandEnvironmentalImpact
Statementprocessisexpectedtotake2yearsandconstructionoftheexpansionanother23
years.Thenewinfrastructurerequiredincludesabeneficiationplant,powerstation,
warehouse,workshops,barge,ferryfacilities,portandshiploadingfacilities.Itwillbelocated
approximately50kmtothesouthoftheWeipatownship(32).
Inadditiontothisproject,ChalcoarecurrentlyundertakingaFeasibilityStudyforthe
developmentoftheAurukunproject,totheSouthofWeipa.Atthesametime,CapeAlumina
isdevelopingaproposaltominebauxiteatthePisoliteHillsproject.Ifbothoftheseprojects
goahead,thentherewillbeasignificantlevelofdevelopmentoccurringintheWesternCape
Yorkregionoverthenextfewyears.Whilethiswillinevitablyplaceadditionalpressureon
infrastructureandservicesintheregion,itwillalsogeneratesomepotentialopportunitiesfor
synergiesintermsofinfrastructure,andthemanagementofenvironmentalandsocial
impacts.ItwillalsoofferopportunitiesforfurtherdirectIndigenousemploymentaswellas
enterprisedevelopmentinassociatedcommunityserviceareas.
6.2 Regulatoryaspects
Futuremininggrowthintheregionisgovernedbyawiderangeofexistinglegislation.Of
particularnoteisthepotentialimpactofQueenslandsWildRiverslegislation,aswellasthe
emergingfocusinapprovalprocessesandNativeTitlenegotiationsontheformalisationof
sustainabledevelopmentplansforregionsandcommunities.
SincetheintroductionoftheWildRiversAct2005(Qld),nineWildRiverDeclarationshave
beenmadeintheStateandanotherisproposed.Ofthese,theArcherBasinDeclarationmade
on3April2009and,inparticular,theproposedWenlockBasindeclarationstandtohavethe
greatestimpactonthefutureexpansionofminingactivity(andotherdevelopment)on
WesternCapeYork.ThepurposeoftheActistoprovideahighlevelofprotectionfromnew
developmentactivitiesthathavethepotentialtodegradethewildriversnaturalvalues(33)
andisthemostrecentadditioninalistoflegislationenactedtoprotectQueenslandsnatural
environment.Adeclaredareausuallycoversthewholeriverordrainagebasin
5
andissplitinto
anumberofmanagementareashighpreservation,preservation,floodplainmanagement
andsubartesianmanagementareas.Theseareasdictatewhetherornotaproposedmining
activityisprohibitedorsubjecttotherequirementsofthedeclaration.Forexample,surface

5
Forexample,theproposedWenlockBasinWildRiverAreacoversapproximately7435km
http://www.derm.qld.gov.au/wildrivers/wenlock.html
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mining,categorisedasahighimpactactivity,isprohibitedinhighpreservationareas.Ahigh
preservationareaincludestheriveritself,majortributaries,andanyspecialfeaturesinthe
wildriverarea,asstatedintheDeclaration,upto1kmeithersideofthosefeatures(34).
AlthoughminingactivitiesinexistenceatthetimeoftheDeclarationarenotaffected,alease
renewaloramendmentundertheMineralResourcesAct1989(Qld)willattractWildRiver
requirements.Similarly,anymodificationorexpansionofexistingassociatedmining
infrastructure(e.g.roads,dams)willbringtherequirementsintoeffect.Itshouldbenotedthat
theWildRiversActexplicitlystatesthattheActdoesnotapplytotheAurukunBauxiteproject
(34,sections45,46).Also,WildRiverDeclarationsdonotaffectexistingauthorisations,suchas
theCommonwealthAluminiumCorporationPtyLtdAgreementAct1957(Qld)(34,section17).
AdetailedanalysisoftheimpactofthelegislationisoutsidethescopeofthisReport.
Nevertheless,theActhasfarreachingimplicationsforthefuturedevelopmentofprojectsin
theregion,andhasgeneratedaconsiderabledegreeofpubliccontroversyanddebate.
Anotherrelevantaspectoftheregulatorycontextisthefocusonsustainabledevelopment
objectivesduringprojectestablishmentprocesses.Oneoutcomeofthemultiparty
negotiationstoestablishtheAurukunprojectILUAwasacommitmentbyallpartiesinvolved
tothedevelopmentandimplementationofasustainabledevelopmentplanfortheAurukun
community,stronglydrivenbytheQueenslandStategovernment.Theaimistoensurethat
theProjectcontributestothemaximumextentpossibletotheAurukuncommunitysandthe
nativetitleholderssustainableeconomic,culturalandsocialdevelopment.(35)
7. SUMMARY
ThebauxiteminingoperationsatWeipahavebeenamajorcontributortothesocioeconomic
developmentoftheWesternCapeYorkregion,boththroughtheprovisionofinfrastructure
andthegenerationofeconomicactivity.Thelongevityoftheoperation,coupledwiththe
developmentofadditionalprojectsintheregionasaresultofincreasedglobaldemandfor
aluminium,suggestthatbauxiteminingwillcontinuetobethemaineconomicactivityinthe
regionfortheforeseeablefuture.
RelationshipsbetweenRTAandIndigenouscommunitiesintheWeiparegionhaveundergone
asignificantimprovement,inlinewiththeminingindustry'sshiftinapproachoverthe
previoustwodecades.TheEBMPAandWCCCAagreementsrepresentacomprehensive
attempttoharnessthebenefitsofminingactivitytoimprovethesocioeconomicconditions
fortheIndigenouspopulationofthearea,boththroughdirectinvolvementinactivities
supportingtheminingoperation,aswellasfosteringthedevelopmentofindependent
enterprises.
Theprojectedexpansionofbauxiteminingoperationsintheregionbyseveralcompanieswill
increasetheneedforeffectivemanagementofresources,infrastructureandservicesasa
resultofincreasingdemand.Acontinuedfocusontheregionalaspectsofmining
development,withtheinvolvementofallstakeholders,willallowtheexploitationofsynergies
andensurethatthebenefitsofminingaremaximised,whilenegativeimpactsareminimised.
DRAFTOctober2009


8. REFERENCES
1. P.P.Courtenay,NorthernAustralia:patternsandproblemsoftropicaldevelopment.,
(LongmanCheshire,Melbourne,1982).
2. SGSEconomicsandPlanning,RioTintoAluminiumWeipaCommunityBaselineStudy
ASocioEconomicProfileandAssessmentoftheEconomicContributionofRioTinto
Aluminium(RTA)totheWeipaCommunity.(2007).
3. R.Howitt,RethinkingResourceManagement:Justice,SustainabilityandIndigenous
Peoples.(Routledge,2001).
4. RioTintoAlcan.(2009).
5. RioTintoAlcan,Weipa2008SustainableDevelopmentReview(2008).
6. RioTinto,RioTintoReview,91.(September,2009).
7. RioTintoAlcan.(June,2008a).
8. RioTinoAlcan,Weipa2007SustainableDevelopmentReport(2007).
9. RioTintoLimited.(March,1998).
10. B.Harvey,inHonourAmongNations:TreatiesandAgreementswithIndigenous
People,M.Langton,M.Tehan,L.Palmer,K.Shain,Eds.(MelbourneUniversityPress,
Carlton,Vic.,2004),pp.354p.
11. AgrementsTreatiesandNegotiatedSettlementsproject,ComalcoIndigenousLand
UseAgreement(ILUA)(WesternCapeCommunitiesCoexistenceAgreement)
(August,2001).
12. P.Crooke,B.Harvey,M.Langton,inSettlingwithIndigenousPeople:ModernTreaty
andAgreementmaking,Langton.M,Mazel.O,Palmer.L,Shain.K,M.Tehan,Eds.
(FederationPress,Annandale,N.S.W.,2006),pp.xvii,296p.
13. ABCNews.(April8,2009).
14. ABCFarNorthQLD.(May15,2009).
15. J.Buultjensetal.,TourismManagementInPress,CorrectedProof,(2009).
16. QueenslandDepartmentofInfrastructureandPlanning.(November2007a).
17. AustralianBureauofStatistics.(March31,2008).
18. QueenslandDepartmentofInfrastructureandPlanning.(May2009).
19. QueenslandDepartmentofInfrastructureandPlanning.(November,2007b).
20. J.Taylor,inPower,culture,economy:indigenousAustraliansandmining.Centrefor
AboriginalEconomicPolicyResearchmonographseries,J.C.Altman,D.F.Martin,
AustralianNationalUniversity.CentreforAboriginalEconomicPolicyResearch.,Eds.
(ANUEPress,Acton,A.C.T.,2009),pp.1v.
21. RioTinoAlcan.(March2009).
22. TheHonBrendanO'Connor,E.DepartmentofEducation,andWorkplaceRelations,Ed.
(October9,2008).
23. QueenslandGovernment.(2009).
24. DepartmentFisheriesForestryConservation,TheNationalIndigenousForestry
Strategy(May2005).
25. S.Feary,Ed.,ForestryforIndigenousPeoples:LearningFromExperiencesWithForest
Industries,(June2007).
26. QueenslandGovernment.(August12,2004).
27. P.Vidler,IndigenousEmploymentandBusinessDevelopmentintheQueensland
ResourcesSector(AreporttotheQueenslandResourcesCouncil)(June2007).
28. D.Breretonetal.,MiningandIndigenousTourisminNorthernAustralia:Summaryof
Findings(TheUniversityofQueensland,2006).
29. CommonwealthofAustralia.(2009).
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30. RioTintoAluminium.(2008).
31. J.Arlidge,RioTinto,Ed.(September2009).
32. RioTintoAlcan.(June,2008b).
33. QueenslandDepartmentofEnvironmentandResourceManagement.(April2009).
34. QueenslandGovernment.(2005).
35. EbsworthandEbsworthLawyers.(May28,2007).

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