Indigenous mining deal forged

A ROYALTIES agreement struck between the Butchulla people and mining interests in the Maryborough basin has fused the financial health of local indigenous communities with the success of a Fraser Coast coal seam gas exploration project.

Mining executives have also confirmed that assurances provided to the Butchulla about indigenous access to jobs created by any mining operation were a vital plank in forging agreement.

Blue Energy CEO John Phillips confirmed yesterday that the royalties pledge, which could be worth millions if commercial quantities of gas are tapped, was central to resolving native title issues that stood in the way of exploration approval.

Questioned on the subject of royalties, Mr Phillips said: “It is not uncommon to have those sorts of agreements in there and this agreement is no different to others that have been negotiated around the place. And there are (royalties).”

Butchulla elders welcomed the news but cautioned that exploration was a preliminary step and not a guarantee of revenue.

Mr Phillips said specific details could not be released due to commercial sensitivity but added compensation for the indigenous owners of the land would be vital to helping those communities become self sustaining.

Blue Energy is the on-ground operator of the mining operation and stands with Adelaide Energy in a joint venture to open up gas fields in the Maryborough basin.

The project has been given a boost by the recent announcement of the successful purchase of one of three permits that cover the area Blue Energy and Adelaide Energy believe may contain at least enough gas to provide the Fraser Coast local market.

Two more permits have to be obtained to give Blue Energy the authority to mine across the areas on the Fraser Coast where it believes gas can be found.

Mr Phillips said samples point to modest gas deposits and operations to prepare for gas extraction might begin mid-year.

“The basis for the agreement was cultural heritage values and undertaking surveys to ensure that we didn't disturb areas of significance and should we go to production there will be compensation paid,” he said.