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Social Impact Assessment - McArthur River Mining

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Phase 3 Development Project<br />

<strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong><br />

September 2011


Table of Contents<br />

Table of contents<br />

1 Introduction ............................................................................................................................... 6<br />

1.1 Objective ............................................................................................................................................ 6<br />

1.2 Methodology ..................................................................................................................................... 7<br />

1.2.1 Situation Analysis – Where are we now? ............................................................................................ 7<br />

1.2.2 Understanding Expectations – Where does the Community want to be? ............................................ 8<br />

1.2.3 Consultation ...................................................................................................................................... 8<br />

1.2.4 Monitor, Review and Evaluation Phase ............................................................................................... 9<br />

2 Situation Analysis .................................................................................................................... 11<br />

2.1 Stakeholder Identification and Analysis ............................................................................................ 11<br />

2.2 Community Baseline ........................................................................................................................ 13<br />

2.2.1 Demographic Factors ....................................................................................................................... 15<br />

2.2.2 Socioeconomic Determinants: .......................................................................................................... 39<br />

2.2.3 <strong>Social</strong> Organisations ......................................................................................................................... 47<br />

2.2.4 Economic Organisations ................................................................................................................... 51<br />

2.2.5 Socio-Political Context ...................................................................................................................... 51<br />

2.2.6 Historical Context ............................................................................................................................. 56<br />

2.2.7 Needs and Values ............................................................................................................................. 58<br />

2.2.8 Human Rights .................................................................................................................................. 59<br />

2.2.9 Cultural Background ........................................................................................................................ 60<br />

3 MRM Contributions .................................................................................................................. 64<br />

3.1 MRM Community Benefits Trust Outcomes ...................................................................................... 64<br />

3.1.1 Annual Contributions ....................................................................................................................... 65<br />

3.1.2 Funding Commitments ..................................................................................................................... 66<br />

3.1.3 Outcomes Achieved ......................................................................................................................... 67<br />

3.2 MRM Sponsorships and Donations ................................................................................................... 68<br />

4 Community goal analysis ......................................................................................................... 70<br />

4.1 Community Goal .............................................................................................................................. 70<br />

4.1.1 MRM Community Benefits Trust Planning ........................................................................................ 70<br />

4.1.2 Roper Gulf Shire Council .................................................................................................................. 70<br />

4.2 Priorities and Objectives – MRM Community Benefits Trust Planning ................................................ 71<br />

4.3 Borroloola LIP ................................................................................................................................... 72<br />

4.4 Priorities and Objectives – NT Government Planning ......................................................................... 73<br />

5 <strong>Social</strong> <strong>Impact</strong> Management Plan.............................................................................................. 76<br />

5.1 Project <strong>Impact</strong> and Opportunities <strong>Assessment</strong> .................................................................................. 76<br />

5.2 <strong>Impact</strong> Identification ........................................................................................................................ 76<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 2


Table of Contents<br />

5.3 <strong>Impact</strong> <strong>Assessment</strong> ........................................................................................................................... 76<br />

5.4 <strong>Impact</strong> Management ........................................................................................................................ 77<br />

5.4.1 Employment ..................................................................................................................................... 79<br />

5.4.2 Regional Development ..................................................................................................................... 83<br />

5.4.3 Environment and Rehabilitation ....................................................................................................... 89<br />

5.4.4 Tailings Storage Facility .................................................................................................................... 91<br />

5.4.5 Overburden Emplacement Facility .................................................................................................... 92<br />

5.4.6 Cultural Heritage .............................................................................................................................. 94<br />

5.4.7 Bing Bong ........................................................................................................................................ 95<br />

5.4.8 Project - General .............................................................................................................................. 96<br />

5.4.9 Cumulative <strong>Impact</strong>s .......................................................................................................................... 97<br />

References .......................................................................................................................................... 100<br />

Table of Tables<br />

Table 1: Birthplace, Indigenous Members of the Population and Languages Spoken at Home ...................... 22<br />

Table 2: Citizenship of Residents .................................................................................................................. 23<br />

Table 3: Workforce Statistical Breakdown .................................................................................................... 26<br />

Table 4: Nominated Occupations ................................................................................................................. 27<br />

Table 5: Median Income ............................................................................................................................... 28<br />

Table 6: Total Household Earnings Per Week ................................................................................................ 29<br />

Table 7: Students Attending Educational Institutions .................................................................................... 34<br />

Table 8: Highest Level Of Education ............................................................................................................. 35<br />

Table 9: MRM Leases ................................................................................................................................... 42<br />

Table 10: Family Compositions ..................................................................................................................... 43<br />

Table 11: Registered Marital Status .............................................................................................................. 43<br />

Table 12: <strong>Social</strong> Marital Status ..................................................................................................................... 44<br />

Table 13: Dwelling Statistics ......................................................................................................................... 46<br />

Table 14: Community Organisations ............................................................................................................ 47<br />

Table 15: Summarised Commitments to Development Objectives ................................................................ 55<br />

Table 16: MRM Community Benefits Trust Key Performance Measures, 2011 .............................................. 67<br />

Table 17: Gulf Region Community Priorities and Objectives ......................................................................... 71<br />

Table 18: Priorities and targets as identified within the Borroloola LIP .......................................................... 73<br />

Table 19: Summary <strong>Impact</strong> <strong>Assessment</strong> ........................................................................................................ 77<br />

Table 20: Recent, Pending and Planned Resource Projects ............................................................................ 98<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 3


Table of Contents<br />

Table of Figures<br />

Figure 1: Stakeholder Classifications ............................................................................................................. 12<br />

Figure 2: Regional Location Plan .................................................................................................................. 14<br />

Figure 3: Population Age .............................................................................................................................. 24<br />

Figure 4: Total MRM Workforce as at 31 December 2006 - 2010 ................................................................ 30<br />

Figure 5: Local MRM Workforce Participation ............................................................................................... 30<br />

Figure 6: MRM Indigenous Workforce Participation ..................................................................................... 31<br />

Figure 7: MRM Economic Value Generated including NT Procurement (AUD)............................................... 33<br />

Figure 8: Map of <strong>McArthur</strong> <strong>River</strong> Station ...................................................................................................... 37<br />

Figure 9: Percentage of People Who Undertook Unpaid Volunteer Work in the Preceding 12 Months .......... 38<br />

Figure 10: Language Groups in the Borroloola and Gulf Region ................................................................... 57<br />

Figure 11: MRM Community Benefits Trust Funding Commitments ............................................................. 66<br />

Appendices<br />

Appendix 1 — MRM Phase 3 Development Project, Community Consultation Report<br />

Appendix 2 — MRM Community Benefits Trust — 20 Year Plan<br />

Appendix 3 — MRM Community Benefits Trust Grants approved 2007 – 2011<br />

Appendix 4 — <strong>Impact</strong>/benefit summary table<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 4


Glossary<br />

Glossary<br />

Term<br />

Definition<br />

Term<br />

Definition<br />

AAPA<br />

Aboriginal Areas Protection Authority<br />

MAWA<br />

Mawurli and Wirriwangkuma<br />

Aboriginal Association<br />

ABS<br />

Australian Bureau of Statistics<br />

MCA<br />

Minerals Council of Australia<br />

BARC<br />

Borroloola Amateur Race Club<br />

MRM<br />

<strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

CDEP<br />

Community Development<br />

Employment Projects<br />

NAIDOC<br />

National Aboriginal and Islander Day<br />

Observance Committee<br />

CGC<br />

Community Government Council<br />

NT<br />

Northern Territory<br />

CRG<br />

Community Reference Group<br />

NTCR<br />

Northern Territory controlled road<br />

DET<br />

Northern Territory Government<br />

Department of Education and Training<br />

OEF<br />

Overburden Emplacement Facility<br />

DIDO<br />

Drive-in drive-out<br />

SEP<br />

Stakeholder Engagement Plan<br />

DSEWPC<br />

Australian Government Department of<br />

Sustainability, Environment, Water,<br />

Population and Communities<br />

SIA<br />

SLA<br />

<strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong><br />

Strategic Land Area<br />

EIS<br />

FIFO<br />

IAP2<br />

LIP<br />

Environmental <strong>Impact</strong> Statement<br />

Fly-in fly-out<br />

International Association for Public<br />

Participation<br />

Local Implementation Plan<br />

The Project The proposed MRM Phase 3<br />

Development Project<br />

TSF<br />

VET<br />

Tailings Storage Facility<br />

Vocational Education and Training<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 5


Introduction<br />

1 Introduction<br />

This <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> (SIA) assesses the social and community characteristics of the proposed Phase<br />

3 Development Project (the Project) of the <strong>McArthur</strong> <strong>River</strong> Mine (MRM) and the likely associated benefits and<br />

impacts of its implementation.<br />

This report follows industry best practice as described by the Minerals Council of Australia (MCA) in its<br />

Socioeconomic Benefits and <strong>Impact</strong>s: an assessment and planning toolkit, available on their website<br />

.<br />

Findings in this report build on earlier reports commissioned by MRM into the existing cultural and socioeconomic<br />

environment surrounding MRM. In particular, an independent review undertaken by Charles<br />

Darwin University in 2003, which was used as material to support MRM’s 2005 EIS (MRM, 2005) that<br />

assessed the environmental and social impacts of converting the mine from an underground to an open pit<br />

operation.<br />

Additional data has been sourced to capture the social and economic progression from this period, including<br />

quantitative data from the Australian Bureau of Statistics (ABS) 2006 Census (ABS 2006), the NT Growth<br />

Towns initiative draft Borroloola Local Implementation Plan (LIP) (NT Government et al., 2011), together with<br />

qualitative data retrieved through an extensive community consultation program as outlined in Appendix 1.<br />

1.1 Objective<br />

The MCA suggests an SIA must not be limited to identifying the potential risks and impacts of a proposed<br />

project, but must investigate a broader focus to identify potential benefits and opportunities. The risk of<br />

focusing on the narrow definition of ‘risk and impact’ alone can often mean a community’s needs and<br />

aspirations are overlooked, together with their participation in the planning process, and, as a consequence,<br />

the potential of a project becoming a catalyst for improved socioeconomic activity is lost.<br />

The objective of this SIA is to identify and analyse intended and unintended social consequences, both<br />

positive and negative, of the proposed Project and any social change processes invoked by it, together with<br />

how these may affect the future vision of the area.<br />

These consequences or impacts can be broadly categorised as:<br />

• People’s way of life – how they live, work, play and interact with one and other<br />

• People’s culture – shared beliefs, customs, values and language or dialect<br />

• Community – its cohesion, stability, character, services and facilities<br />

• Political systems – the extent to which people are able to contribute to decision which may affect<br />

their lives<br />

• Local environments – the quality of air and water people use, the availability and quality of food, the<br />

level of hazard, dust and noise exposure, adequacy of sanitation, physical safety, access and control<br />

over resources<br />

• Health and well-being – physical, mental, social and spiritual well being<br />

• Personal and property rights – whether people are economically affected, or experience personal<br />

disadvantage, or civil liberties are violated<br />

• Fears and aspirations –perceptions of safety, fears about the future of the community, aspirations for<br />

the future and the future of the children.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 6


Introduction<br />

Within the context of the EIS for the Project, the SIA will particularly focus on the social, environment,<br />

development needs, priorities and concerns arising from the potential mine development scenario.<br />

1.2 Methodology<br />

This SIA has followed a four-step approach, using the MCA guidelines as a basis for undertaking<br />

consultation, research and developing this document.<br />

1.2.1 Situation Analysis – Where are we now?<br />

This assesses the current local area situation.<br />

Stakeholder identification and analysis has been based on:<br />

• Stakeholder and issues workshopping with MRM employees and representatives to capture the<br />

established relationships and networks within the community maintained by MRM.<br />

• MRM stakeholder materiality assessment in Xstrata Zinc Sustainable Development Standard 12<br />

Guidelines for Stakeholder Engagement 20-11 (Xstrata Zinc, 2011).<br />

• Results of the MRM 360 Degree Stakeholder Survey 2010.<br />

• MRM Community Benefits Trust consultation activities for Annual Plan development (MRM<br />

Community Benefits Trust, 2007 - 2010).<br />

A range of data has been collected including:<br />

• Quantitative data taken from 2005 MRM Draft EIS (URS 2005), ABS 2006 Census results (ABS 2006),<br />

NT Growth Towns initiative draft Borroloola LIP (NT Government et al., 2011), Roper Gulf Shire<br />

Council Strategic Plan 2010 – 2013 (Roper Gulf Shire Council, 2010), and other sources including<br />

organisational charters, studies and reports.<br />

• Qualitative data taken from community and stakeholder consultation conducted between March and<br />

August 2011 about the Project.<br />

• Information about MRM’s contributions to the community and the region since MRM’s 2005 EIS was<br />

submitted and subsequent work completed to convert the mine from underground to open pit<br />

operations.<br />

The results of these studies have been documented in this report and include a discussion on and analysis of<br />

the community profile, key economic information and the proposed Project’s socioeconomic benefits,<br />

opportunities and potential impacts.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 7


Introduction<br />

1.2.2 Understanding Expectations – Where does the Community want to be?<br />

This step involved identification and assessment of key stakeholder and community drivers and expectations<br />

specific to the Project. It looks at objectives set by the community as to ‘where they want to be’.<br />

This information will be used to determine how best to meet these expectations through the successful<br />

mitigation and / or management of impacts and issues identified, and exploration of the benefits and / or<br />

opportunities raised.<br />

This information has been collected using an equitable, all-inclusive, comprehensive approach to undertake a<br />

series of in-depth key stakeholder and community consultation tactics specifically focusing on the Project.<br />

1.2.3 Consultation<br />

This section provides a summary of the consultation activities to date. This process involved the development<br />

and implementation of strategies to ensure identified key stakeholders and the local community were<br />

effectively engaged on the Project in a range of forums where their specific issues, concerns, questions and<br />

comments were addressed. These strategies draw from the International Association of Public Participation<br />

(IAP2) Spectrum of inform, consult, involve, collaborate, and empower and are summarised as follows.<br />

Inform<br />

The inform stage saw key stakeholders and the community provided with information advising of MRM’s<br />

intention to conduct an environmental assessment for the Project and provided a variety of appropriate<br />

channels to receive information, including meetings in Darwin, Borroloola and Robinson <strong>River</strong>, meetings of<br />

the MRM Community Reference Group, four site visits to MRM, presentations to community organisations,<br />

one on one briefings, preparation of factsheets on specific topics, and internet communication.<br />

This activity occurred during March at the announcement of the project, coincided with the consultation<br />

phase to provide supporting communication tools and will continue in post EIS lodgement when a<br />

community engagement program will advise on the outcomes of the SIA and the proposed strategies to<br />

mitigate or maximise issues and opportunities raised.<br />

Consult<br />

The principles behind the consultation process were that it was to be comprehensive, equitable in its reach,<br />

all-inclusive, thorough and detailed in its reporting.<br />

It involved systematically working with key stakeholders and community members to gain their participation<br />

in the engagement process. This process was conducted in July and August 2011.<br />

The consult phase has reached 293 people through personal meetings and focus group discussion.<br />

All stakeholders were identified and classified according to their level of interest and influence on the Project,<br />

and consultation was designed around the results of this analysis.<br />

The nature of the consultation took into account a number of external influences and considered a number<br />

of factors to ensure an effective methodology. These included:<br />

• Inclusiveness – ensuring all stakeholders had a chance to ‘have their say’. This was achieved by<br />

conducting consultation one-on-one or in small, focus group-style scenarios where discussion,<br />

involvement and questions were encouraged and recorded.<br />

• Literacy levels – ensuring all written consultation materials (such as factsheets) were written in plain<br />

English to encourage interest and ensure understanding.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 8


Introduction<br />

• Cultural obligations – ensuring the consultation process took into account the various cultural<br />

activities and obligations the Indigenous members of the target communities have. These included<br />

participation in National Aborigines and Islanders Day Observance Committee (NAIDOC) Week<br />

celebrations, attending to women’s business and sorry business.<br />

• Cultural sensitivity – demonstrating respect for the Indigenous culture and encouraging consultation<br />

involvement.<br />

The consultation report (Appendix 1) provides an overview of the consultation process undertaken to date,<br />

together with a detailed assessment of consultation results. A stakeholder matrix was developed, which<br />

included an analysis of both community and government stakeholders to be consulted. (Appendix 5 within<br />

the Consultation Report contains a list of all stakeholders consulted).<br />

Both community and government stakeholders played a key role in the consultation process, providing<br />

valuable input into the EIS development. Specifically, the role of community was to identify and provide<br />

feedback on their issues and areas of concern together with areas of benefit and opportunity in relation to<br />

the proposed Project. Government stakeholders participated in the consultation process and highlighted<br />

areas of concern or benefit from a local, NT and national standing.<br />

The information received during the consultation process has been methodically captured and recorded. The<br />

analysis of this feedback has identified the key areas of concern and impact for the stakeholders, together<br />

with those areas identified as opportunities or benefits for their communities. The assessment of this<br />

information was shared on a regular basis with members of the wider EIS Project team and as appropriate,<br />

contributed to the Project’s design. Feedback has informed the assessment of potential Project impacts and<br />

benefits across all EIS study areas. This level of influence demonstrates strict adherence to the IAP2<br />

guidelines.<br />

Involve and Collaborate<br />

The involve and collaborate phase of consultation draws on an established network of community leaders to<br />

confirm the issues, concerns, questions and comments raised through the consultation process and test<br />

strategies to mitigate, manage or implement them.<br />

Overall, this two-way process of consultation is a continuation of the engagement approach currently in<br />

place at MRM, where feedback and involvement from community and key stakeholders is welcomed and<br />

encouraged.<br />

1.2.4 Monitor, Review and Evaluation Phase<br />

This phase considers the Project against the baseline community conditions in order to assess the potential<br />

social impacts, benefits and opportunities. Included at Section 5 are a range of potential mitigation and<br />

enhancement strategies. This assessment informed the development of the Stakeholder Engagement Plan<br />

(SEP) and will guide ongoing consultation, management decisions and actions.<br />

The SEP will build upon the SIA by identifying the key areas that will be the focus of social management for<br />

the Project. A framework will be established to support the monitoring of social impacts and the<br />

effectiveness of mitigation strategies, while objectives will be clearly documented as areas of opportunity. Key<br />

performance indicators will be agreed, and a process for revising management strategies, where required,<br />

will be developed. Annual Mine Management Plans and associated operating budgets will provide resource<br />

allocations and constructive short-term plans to implement the SEP actions.<br />

The SEP is a dynamic document that will be reviewed on an annual basis to ensure unexpected or new<br />

impacts are assessed and managed, while emerging opportunities are maximised.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 9


Introduction<br />

Xstrata Zinc’s Sustainable Development Framework, specifically Standard 12 – Guidelines for Stakeholder<br />

Engagement, was also referenced during this consultation period, and provides a framework for stakeholder<br />

engagement planning and implementation.<br />

Community consultation and engagement will continue as part of ongoing MRM operations. Communication<br />

channels will include the continued operation of the MRM hotline and Project email address, together with<br />

the development and production of written materials (such as fact sheets and community newsletters) to<br />

ensure stakeholders and community members continue to be kept informed of mine progress, news and<br />

general information. The continued use of the MRM office in the town of Borroloola will ensure access to<br />

MRM representatives is made easy for locals, and the communication exchange continues. The MRM<br />

Community Reference Group (CRG) will continue to play a key role in the collaboration phase, and will be a<br />

valuable communication tool.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 10


Situation Analysis<br />

2 Situation Analysis<br />

2.1 Stakeholder Identification and Analysis<br />

As part of the SIA process, stakeholders were identified and classified according to their interest in and<br />

influence on the proposed project as defined by the MCA and Xstrata Zinc guidelines.<br />

The following figure (Figure 1) provides detail on the classification of each stakeholder according to the MCA<br />

guidelines. Stakeholders and community members were assessed according to their influence or power and<br />

interest, which determines the level of communication appropriate.<br />

For example, the Gurdanji community has been identified as having high power and interest in the proposed<br />

project, meaning this group has been classified in the manage closely quadrant. For the communication and<br />

consultation process, this classification means this particular group needs to receive high levels of<br />

communication and contact to ensure their understanding and encourage their involvement. By comparison,<br />

Darwin business organisations have been identified as having low power and interest in the proposed project,<br />

meaning this group has been classified in the monitor quadrant. For the communication and consultation<br />

process, this classification means this particular group requires the minimum amount of consultation on the<br />

proposed project.<br />

It is important to note that while some stakeholders have been classified in the monitor quadrant, this does<br />

not mean these stakeholders are ignored or exempt from the communication process. It simply means<br />

consultation and communication with these groups is significantly less compared to those stakeholders<br />

captured in the manage closely, keep satisfied or keep informed quadrants.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 11


Situation Analysis<br />

Figure 1: Stakeholder Classifications<br />

INFLUENCE OR POWER<br />

KEEP SATISFIED<br />

Local business organisations<br />

Other surrounding communities<br />

MONITOR<br />

Pastoralists<br />

Darwin business organisations<br />

Tourists<br />

MANAGE CLOSELY<br />

Traditional Owners<br />

Communities – Yanyuwa<br />

Communities – Gurdanji<br />

Communities – Mara<br />

Communities – Garrawa<br />

Community groups<br />

Indigenous / local services<br />

and NGOs<br />

KEEP INFORMED<br />

Employees<br />

Roper Gulf Shire Council<br />

NT Government and agencies<br />

Australian Government<br />

INTEREST<br />

All stakeholders were identified and classified according to the following steps:<br />

1. Identify stakeholder groups<br />

2. Identification criteria to ensure no stakeholder groups are missed:<br />

• Responsibility: The people for which the operation is responsible for (employees, etc.).<br />

• Influence: Stakeholders with influence or decision-making power (authorities, shareholders,<br />

pressure groups).<br />

• Proximity: Stakeholders who interact most with the operation (employees, contractors, local<br />

communities, business partners, local suppliers, local infrastructure providers).<br />

• Dependency: Stakeholders directly or indirectly dependent on Xstrata Zinc (only employer or<br />

sole purchaser in remote area); or dependent on Xstrata Zinc for other issues such as school,<br />

hospital, water, electricity supply, etc.<br />

• Representation: Stakeholders that can claim to represent a constituency (MPs, NGOs, union,<br />

community leaders, and special interest groups).<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 12


Situation Analysis<br />

• Strategy intent: Stakeholders addressed directly or indirectly through Xstrata Zinc policies or<br />

value statements (consumers, communities) or provision of early warning on emerging issues<br />

(e.g. activists, academia, blogs).<br />

After the identification, every stakeholder was assessed by rating their power over and influence on the<br />

proposed project. As a result of the assessment, the stakeholder groups were ranked in terms of<br />

communication levels required. Rankings included:<br />

1. Manage closely<br />

2. Keep satisfied<br />

3. Keep informed<br />

4. Monitor.<br />

Stakeholders classified as ‘Manage closely’ required more resources directed at engaging and consulting with<br />

them than ‘Monitor’ stakeholders. However, it is to be highlighted that any stakeholder has the potential to<br />

move from one classification to the other, therefore, flexibility and constant review of stakeholder<br />

classifications is essential.<br />

To ensure a robust process, stakeholders were assessed and managed early, and regularly reviewed to define<br />

the priorities and effectiveness of the stakeholder engagement and consultation program. The process<br />

ensured vulnerable or voiceless stakeholders were included. Such stakeholders may not have received the<br />

high level engagement as others, but they were included in the process.<br />

The constraints of every stakeholder were identified – this may be due to capacity (e.g.: time, money, access<br />

to IT) or to competency (e.g.: language, expertise) constraints. These constraints were identified when<br />

developing the consultation tactics.<br />

2.2 Community Baseline<br />

The baseline provides a snapshot of the community as it stands today. This section draws on data collected in<br />

the ABS 2006 Census relating to the Gulf Strategic Land Area (SLA) and Borroloola Community Government<br />

Council (CGC) SLA*.<br />

The Project is located in the Roper Gulf area of the NT, approximately 60 km south-west of the township of<br />

Borroloola. For the purpose of this SIA, the Project’s area of influence has been defined as the whole Gulf<br />

SLA, with a particular focus on the community of Borroloola. Other communities of interest include the<br />

smaller Indigenous outstations surrounding Borroloola as well as King Ash Bay, Robinson <strong>River</strong> and the Sir<br />

Edward Pellew Islands.<br />

The Gulf SLA is defined by the ABS as covering 60,513.8 km 2 extending from Limmen in the north-east to<br />

the Queensland border to the east, and about 100-200 km inland. The Borroloola CGC SLA is located<br />

approximately in the centre of the Gulf SLA, however is not part of the Gulf SLA from a statistical<br />

perspective. The township of Borroloola is located on the <strong>McArthur</strong> <strong>River</strong>, approximately 50 km upstream<br />

from the Gulf of Carpentaria and covers an area of around 12.6 km 2 .<br />

* Note: The Borroloola Community Government Council was the governing body in the region when the last<br />

reported census was conducted and released in 2006. The region has, since 2009, been governed by the<br />

Roper Gulf Shire Council following a local government redistribution by the NT Government.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 13


Situation Analysis<br />

Figure 2: Regional Location Plan<br />

Source: MET Serve, 2011<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 14


Situation Analysis<br />

2.2.1 Demographic Factors<br />

a. Services and Facilities<br />

The Gulf Region is sparsely settled and minimally served by urban centres. There are two gazetted towns in<br />

the region:<br />

• Borroloola, which is the main service centre<br />

• The designated town of Pellew on Centre Island off the mouth of the <strong>McArthur</strong> <strong>River</strong>, which has<br />

been identified for future port development.<br />

Other communities within the range of influence of MRM include King Ash Bay, Robinson <strong>River</strong> and a<br />

number of smaller Indigenous outstations or homelands.<br />

Borroloola<br />

Borroloola is an open town located approximately 972 km south-east from Darwin, 655 km south-east of<br />

Katherine and 940 km north-west of Mount Isa in Queensland (Google et al., 2011). The town is surrounded<br />

by Aboriginal Freehold Land and the population of 773 is approximately 75% Indigenous (ABS, 2006).<br />

Within this area, housing developments or camps accommodate the four main Indigenous language groups<br />

whose country comprises the Gulf SLA, which are Yanyuwa, Garawa, Mara and Gurdanji.<br />

Aerial of the township of Borroloola<br />

Up until 1870, the area was largely isolated from European Australian settlement and was home to a number<br />

of Indigenous tribes. Borroloola carries a strong Indigenous history, with the majority of the population<br />

identifying as Indigenous in the ABS 2006 Census (ABS, 2006).<br />

European settlement of the present site of Borroloola began 30 years after Ludwig Leichhardt first sighted<br />

the area in 1845. Originally settled by pastoralists, by 1887 the town had grown to include a courthouse,<br />

police stations, two hotels, a butcher’s shop and a general store (The Sydney Morning Herald, 2004)<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 15


Situation Analysis<br />

Borroloola is now a significant service centre for the surrounding cattle stations, in addition to MRM.<br />

Tourism is also an important aspect of the area, centring on natural features and outdoor activities including<br />

fishing, four-wheel driving and bush walking.<br />

Pastoral homesteads, motels and camp grounds, and the MRM accommodation facilities represent other<br />

principal population centres. The non-Indigenous population in the area is primarily concentrated in<br />

Borroloola and scattered pastoral homesteads, and around other minor enterprises (fishing, tourism, etc).<br />

There are also approximately 26 outstations surrounding Borroloola. An outstation (or homeland) provides<br />

the opportunity for Indigenous people in the NT to live on their traditional land, maintaining their cultural<br />

heritage (NT Government, 2011). It is defined as a ‘piece of land (big or small) belonging to Indigenous<br />

people (most commonly in family groups) and where they live’ (Mabunji Aboriginal Resource Association Inc.,<br />

2010). Residents of these outstations travel to Borroloola to access services.<br />

Outstations are located at varying distances from Borroloola, with the furthest outstation relying on<br />

Borroloola’s services estimated to be around 260 km away.<br />

The local outstations incorporate areas that were previous pastoral leases, together with island communities<br />

on the Sir Edward Pellew Islands.<br />

Outstations are as follows:<br />

• Bauhinia Downs<br />

• Ijari<br />

• Numultja<br />

• Balbarini<br />

• Jungalina<br />

• Sandridge<br />

• Wurlbu<br />

• Black Craggy<br />

• Wanda Ngula<br />

• Yathunga<br />

• Babungi<br />

• Millibunthurra<br />

• Wada Wadala<br />

• Yameeri<br />

• Cow Lagoon<br />

• Minyalini<br />

• Wada Warra<br />

• Yulbara<br />

• Garangjiny<br />

• Mooloowa<br />

• Wathunga<br />

• Uguie<br />

• Goolminyini<br />

• Mumathumburu<br />

• Webe Point<br />

• Yungurie<br />

Source: Mabunji Aboriginal Resource Association Inc., 2010<br />

Borroloola has been designated by the NT Government as a ‘Growth Town’ under its Working Future Policy<br />

(NT Government, 2011). This means it is targeted by the NT Government as one of the Territory’s<br />

strategically placed remote communities to become a properly planned and designed town providing services<br />

and infrastructure equivalent to those available in similarly sized Australian country towns. Borroloola,<br />

through the Growth Towns initiative, will be the focus of regional service, building, facilities and<br />

infrastructure development.<br />

King Ash Bay<br />

The King Ash Bay fishing centre, located approximately 52 km north of Borroloola, is increasingly popular<br />

with tourists, particularly retired and semi-retired people. In the off-season, it is a small centre, consisting of<br />

caravan parks, camping grounds and a shop, with a few permanent residents maintaining it year-round.<br />

However, in the high-season it has a population of up to 1,000 residents and a significant tourism population<br />

which was last tracked in 2007 when around 13,000 visitors recorded around 40,000 visitor nights.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 16


Situation Analysis<br />

Robinson <strong>River</strong><br />

A small, remote Aboriginal community of about 250 people, Robinson <strong>River</strong> is inaccessible for part of the<br />

year due to the intensive wet season. Located in the NT near the Queensland border, the community is<br />

around 150 km east of Borroloola. Robinson <strong>River</strong> was a cattle station until it was handed back to Traditional<br />

Owners in 1992.<br />

Infrastructure<br />

Roads<br />

The NT Department of Lands and Planning manages the road networks in the Northern Territory. Roads are<br />

maintained by the Department of Construction and Infrastructure which provides capital works, minor new<br />

works, repairs and maintenance services. (For more information on Transport, see Chapter 8)<br />

The Carpentaria Highway is the main access road to Borroloola. It is an NT controlled road and connects<br />

Borroloola with destinations to the east and west. It is a sealed, 6.8 m-7.4 m wide, two-way highway with<br />

one lane in each direction. The maximum posted speed limit is 110 km/hr.<br />

It should be noted that during recent site inspections conducted by Halcrow (Road <strong>Impact</strong> <strong>Assessment</strong> 2011),<br />

the condition of the existing road carriageway included water damage, uneven surfaces and pot holes.<br />

Currently, there are no proposed road upgrades for the Carpentaria Highway as per the NT Government’s<br />

Department of Construction and Infrastructure Construction Snapshot dated March 2011 (NT Government,<br />

2011).<br />

Old Bing Bong Road is a NT controlled road connecting Borroloola and Bing Bong. It is a sealed, 6 m wide,<br />

two-way road with one lane in each direction. The maximum speed limit is 110km/hr. (Halcrow, 2011).<br />

Again, there are no proposed road upgrades for Old Bing Bong Road as per the NT Government’s<br />

Department of Construction and Infrastructure Construction Snapshot (NT Government, 2011).<br />

The Halcrow investigations did identify a number of road safety deficiencies on the Carpentaria Highway<br />

between MRM and Bing Bong. These included:<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 17


Situation Analysis<br />

• water damage and pot holes on sections on the roadway, which are a safety hazard to both light<br />

and heavy vehicles<br />

• uneven surfaces and incorrect cambers, which have been reported to cause road train trailers to<br />

swing both off-road and into the opposing carriageway<br />

• narrow sections of road (particularly on causeways), where road train operators have reported that<br />

there is a potential for road trains to rollover if the vehicle accidentally leaves the paved carriageway.<br />

These deficiencies will need to be further investigated and rectified to cater for existing traffic, regardless of<br />

whether the Project proceeds.<br />

The <strong>McArthur</strong> <strong>River</strong> Bridge has offset the significant transportation difficulties facing the community during<br />

the wet season. The bridge is elevated 5.8 m above the existing causeway and includes a 9 m carriageway,<br />

6 m gravel approach lanes and a 220 m-long pedestrian walkway. Previously Borroloola’s road access to the<br />

east was across the <strong>McArthur</strong> <strong>River</strong> by means of a causeway barely higher than the average river height and<br />

just wide enough for one vehicle. MRM actively lobbied the Australian and NT Governments on behalf of the<br />

Borroloola community to have the bridge upgraded. Work was completed and the bridge officially opened in<br />

2011.<br />

MRM has regularly invested in upgrading a section of Mule Creek Road despite this road not being one used<br />

by the mine. This was a direct response to community concerns about the condition of the road after rain.<br />

During consultation, major concerns were prevalent across the region relating to poor road conditions<br />

resulting from general traffic, truck traffic, the wet season and a low level of maintenance. Many felt roads<br />

were in need of significant repair.<br />

Air<br />

‘The only thing that worries me is the roads and allocation from Main Roads for maintenance. The wet<br />

season impact.’<br />

Taken from meeting with Borroloola Police held on 19 July 2011.<br />

‘The roads need to be fixed, the highway.’<br />

Taken from meeting with Safe House held on 20 July 2011.<br />

There are several licensed airstrips in the Gulf Region servicing major centres. Additionally, there are many<br />

airstrips on private land. Although these airstrips meet basic standards, they are not inspected by aviation<br />

authorities, and there is no official listing of their location. However, these minor airstrips provide a valuable<br />

network connecting pastoral homesteads and Indigenous communities to regional centres, especially during<br />

the wet season when many roads become impassable. There is an aerodrome with refuelling facilities at<br />

Borroloola, however this is no longer a registered airstrip. Private flights can still land at the airstrip however,<br />

lighting is only available for air evacuations.<br />

MRM improved the level of air service to Borroloola and the wider Gulf Region by funding an $8 million<br />

upgrade of the MRM airport and runway. These works saw the airstrip upgraded to such a level that it is<br />

more accessible for a wider range of aircraft, including military aircraft and charter jets. The MRM facility is a<br />

resource for the region and is used for defence and commercial air travel, as well as medical evacuations,<br />

charters and refuelling.<br />

Public transport<br />

Through the NT Integrated Regional Transport Strategy - Transport for Our Regions program, $3.1 million<br />

was provided to support the provision of new passenger bus services to remote and regional communities on<br />

a trial basis over a two year period (NT Government, 2011).<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 18


Situation Analysis<br />

As a part of this initiative, the NT Government is implementing nine new bus service trials meaning a total of<br />

13 Territory Growth Towns, including Borroloola, will have access to bus services. Careful consideration was<br />

given to selecting areas where bus trials could be conducted. This included looking at road conditions and<br />

access along possible trial routes, the existing or future potential demand for services and the potential<br />

longer term viability and sustainability of services.<br />

As part of the program, in mid-2011 the Bodhi Bus commenced a new passenger bus service trial with a<br />

return service each week from Katherine to Borroloola (via Mataranka, Lirrimah and Daly Waters).<br />

Utilities<br />

The Power and Water Corporation manages the water supply, sewerage and electricity to the study area.<br />

Water is supplied through community bores, with an average of 65 psi throughout the town (gravity fed).<br />

Interruptions to water supply are usually the result of equipment failure, electrical power outages and line<br />

breakages (Roper Gulf Shire Council, 2011).<br />

Work to upgrade sewerage infrastructure in Borroloola began in May 2011, and includes the installation of a<br />

fully reticulated sewerage system to a significant portion of the community during the 2011 dry season.<br />

Work will include removal of the existing septic tanks due to their potential to overflow during extended wet<br />

seasons.<br />

Electricity is provided through a fuel oil generator and is available 24 hours a day.<br />

Telecommunications<br />

In Borroloola, most locals use a mobile phone, with best coverage in the township and at MRM. There is no<br />

mobile phone coverage in King Ash Bay or Robinson <strong>River</strong>. Landlines are preferred for business use, with<br />

internet access unreliable during the wet season. Under the 'Towns Over 500' program, funding was<br />

provided to Telstra to improve mobile phone coverage to 131 towns in regional Australia which have<br />

populations of 500 or more – Borroloola was one of the identified towns (Australian Government<br />

Department of Communications, Information Technology and the Arts, 2008). This program was developed<br />

in response to concerns raised in the Telecommunications Service Inquiry about mobile phone coverage in<br />

regional areas. The rollout of new services was completed in September 2006. It should be noted that even<br />

with the new services, there are constant telecommunication issues for the township with mobile coverage at<br />

times being unreliable.<br />

Recreational, Cultural, Leisure and Sporting Facilities and Activities<br />

Recreational and cultural events play a role in the social fabric of Borroloola, King Ash Bay and Robinson<br />

<strong>River</strong>. There is importance placed on encouraging the participation of youth in cultural events such as<br />

NAIDOC Week and Boonu Boonu Festivals.<br />

Despite general interest in cultural events, there remains a lack of recreational activities, facilities and<br />

infrastructure for young people. Consultation showed a high level of concern for this aspect in the region,<br />

with a number of stakeholders (particularly leaders of the Indigenous language groups) indicating they felt<br />

young people needed such facilities and services to help divert them from anti-social behaviour, such as drug<br />

and alcohol abuse.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 19


Situation Analysis<br />

‘There are a lot of things we want for our young people.’<br />

Taken from meeting with Safe House held on 20 July 2011.<br />

‘The (Borroloola Swimming Pool) was a good thing; we would like more things for your young ones. If the<br />

mine could bring things for the children, it would be good. ... We would like a drop-in centre for<br />

teenagers. If we have our own hostel, another softball oval... At the moment we have basketball and<br />

netball together, what we need is our own basketball court. What we need is things like that for our<br />

young people in Borroloola.’<br />

Taken from meeting with Safe House held on 20 July 2011.<br />

‘(Young people) get home after high school, just fighting and getting on the grog. They need some<br />

motivation, they need something to do...’<br />

Taken from meeting with Traditional Owner – Yanyuwa Group held on 29 July 2011.<br />

Borroloola Swimming Pool Complex<br />

One of the most significant community infrastructure developments in Borroloola in recent years was the<br />

$2.1 million Borroloola Swimming Pool Complex, officially opened in 2009. The complex features a 25 metre<br />

swimming pool, wading pool for small children and change room facilities servicing both the pool and soccer<br />

club. The pool’s development was overseen by a community committee and project managed by MRM.<br />

Mine personnel provided project management services in order to generate cost efficiencies for the<br />

community and mine resources were provided for civil works with an in-kind value of approximately<br />

$600,000. The facility is operated by the Roper Gulf Shire Council.<br />

Children enjoying the Borroloola Swimming Complex developed with project management and resource<br />

support from MRM<br />

There remains significant potential to improve the use of the pool as a recreational centre and to promote<br />

swimming as part of a healthy lifestyle to youth. Borroloola School and Wanula Creche have regular bookings<br />

at the pool supporting children attending these facilities to learn to swim.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 20


Situation Analysis<br />

Events<br />

The Borroloola showgrounds and sports fields are grassed and lined with trees for year-round use. These<br />

grounds are used for a number of cultural and social events in the town throughout the year, including the<br />

annual Borroloola Show (June) and the Borroloola Rodeo (August).<br />

In August each year, more than 1,000 people visit Borroloola to celebrate the annual Rodeo, an event<br />

managed by the Borroloola Amateur Race Club (BARC, 2011). King Ash Bay is a popular fishing spot for<br />

locals and tourists all year round. The King Ash Bay Fishing Club is a key destination for visiting anglers and<br />

hosts the annual Easter Barra Classic. This fishing competition attracts competitors from across Australia and<br />

includes family friendly entertainment over the weekend including dancing, music and cane toad races.<br />

MRM is a strong supporter of both the Easter Barra Classic and Rodeo, contributing financially to both events<br />

on an annual basis since the mine’s establishment in 1995.<br />

From a cultural perspective, NAIDOC Week is celebrated in July each year, with a variety of community events<br />

and festivities to showcase the achievements and contributions of Indigenous people. The 2011 NAIDOC<br />

Week theme was Change: the next step is ours (NAIDOC, 2011) – encouraging seizing responsibility for the<br />

future, and recognising that making changes requires planning and taking action to make it happen.<br />

Performers at the 2010 NAIDOC Week festivities in Borroloola<br />

MRM provides sponsorship, in-kind and Trust grant support for the NAIDOC Week festivities in Borroloola,<br />

and the associated Boonu Boonu Festival, a cultural dance festival coinciding with NAIDOC Week, which<br />

celebrates traditional dance groups and musicians from across the region.<br />

Sports<br />

The key main sports that the people of the Gulf are renowned for are soccer and softball.<br />

Borroloola has a proud history of soccer achievements. The first Indigenous Australian selected for a national<br />

soccer team was John Moriarty, a Yanyuwa man, in 1960.<br />

MRM has been a long-term supporter of the Borroloola Cyclones, sponsoring the team with flights, new<br />

soccer jerseys for their debut at the Arafura Games in 2009 and other team requirements.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 21


Situation Analysis<br />

In July 2010, the Borroloola Cyclones football team travelled to Singapore to play their first international<br />

soccer game with sponsorship support from MRM. This week-long trip was also an opportunity to promote<br />

the Australian Indigenous culture in Singapore.<br />

b. Population<br />

The 2006 Census indicated there were 639 people usually resident in the Gulf SLA. Around 55.2%, or 353<br />

were male, and 44.8% or 286 were female. This total excludes overseas visitors (ABS, 2006).<br />

The gender ratio is closer to equality among the Indigenous sector of the population: 51.27% are male and<br />

48.73% are female, compared with 61.22% male and 38.78% female in the non-Indigenous sector of the<br />

population.<br />

In the 2006 Census there were 773 people usually resident in the Borroloola SLA (53.4% male and 46.6%<br />

female) (ABS, 2006).<br />

The Borroloola SLA represented a closer gender ratio than the wider Gulf SLA, both in the Indigenous and<br />

non-Indigenous population, with 51.98% male and 48.02% female, compared with 56.88% male and<br />

43.14% female respectively.<br />

The table below shows the breakdown of birthplace, Indigenous members of the population and languages<br />

spoken at home:<br />

Table 1: Birthplace, Indigenous Members of the Population and Languages Spoken at Home<br />

Gulf SLA Borroloola CGC SLA Australia<br />

Total<br />

Percentage<br />

of<br />

population<br />

Total<br />

Percentage<br />

of<br />

population<br />

Total<br />

Percentage<br />

of<br />

population<br />

Australian-born 556 87% 706 91.3% 14,072,944 70.9%<br />

Indigenous 430 67.3% 579 74.9% 455,031 2.3%<br />

English spoken<br />

at home<br />

513 80.3% 594 76.8% 15,581,333 78.5%<br />

Garawa spoken<br />

at home<br />

23 3.6% 68 8.8% 89 0.0%<br />

Yanyuwa<br />

spoken at home<br />

10 1.6% 34 4.4% 124 0.0%<br />

Source: ABS 2006<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 22


Situation Analysis<br />

c. Residency<br />

The number of people who are usually resident in the Gulf SLA and Borroloola CGC SLA changes slightly<br />

according to seasons and cultural commitments for Indigenous people. Changes are minimal, and therefore<br />

have minimal impact on services, including health care, in the area.<br />

The majority of people usually resident in the Gulf SLA and Borroloola CGC SLA areas have Australian<br />

citizenship, with a small minority born overseas, as follows:<br />

Table 2: Citizenship of Residents<br />

Gulf SLA Borroloola CGC SLA Australia<br />

Total<br />

number<br />

Percentage<br />

of<br />

population<br />

Total<br />

number<br />

Percentage<br />

of<br />

population<br />

Total<br />

number<br />

Percentage<br />

of<br />

population<br />

Australian<br />

citizenship<br />

572 89.5% 732 94.7% 17,095,569 86.1%<br />

People born<br />

overseas<br />

17 2.7% 17 2.2% 4,416,037 22.2%<br />

Source: ABS 2006<br />

The Borroloola area has a higher number of residents during the wet season, with population levels rising by<br />

around 400 people (Roper Gulf Shire Council, 2011).<br />

The King Ash Bay residency level is also estimated to increase to around 1,000 during peak periods.<br />

MRM, with a fly-in fly-out (FIFO) workforce of 440, generally has around 200 people living on site at any one<br />

time. An estimated 52 employees live in the local area, with the remainder FIFO from Darwin, and living<br />

either in Darwin or elsewhere.<br />

d. Population Density<br />

The Gulf SLA population density equates to around one person to every 94.7 km 2 . The Borroloola CGC SLA<br />

population density equates to around 61 people per square kilometre. This reinforces the sparsity of the<br />

region’s population and implies a relatively high unit cost of delivering essential services in the community.<br />

In comparison, Australia’s estimated population density as at June 2008 was 2.8 people per square kilometre,<br />

with significantly higher density levels in coastal and city areas, and the south-east corner of the country.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 23


Situation Analysis<br />

e. Age<br />

The age breakdown of the Gulf SLA is provided in the figure below.<br />

Figure 3: Population Age<br />

Source: ABS 2006<br />

The median age of people is 25 years in the Gulf and Borroloola SLAs, which is comparatively younger than<br />

the remainder of Australia, which has a median age of 37 years. This, however, reflects the high proportion<br />

of Indigenous people in the region, with Australia’s Indigenous population having a median age of 21<br />

(significantly lower than the non-Indigenous population) (ABS, 2006).<br />

f. Health<br />

Evidence suggests remote communities in the NT suffer poor health outcomes compared to Australian<br />

averages. Indigenous Australians have higher rates of diabetes, kidney disease, sexually transmitted diseases<br />

and alcohol and drug abuse than non-Indigenous Australians. This is somewhat attributable to a number of<br />

issues including nutrition, sanitation or housing issues. Because of these conditions, Indigenous adult life<br />

expectancy is about 20 years below that of the rest of the country and Indigenous infant mortality rates are<br />

about 10 times higher (ABC Health and Wellbeing, 2007). The Roper Gulf Shire Council highlights the key<br />

health problems in Borroloola and surrounds as being trachoma, scabies, impetigo, gastro and nits. There are<br />

also issues relating to overcrowding, alcohol abuse and smoke from burn-offs (Roper Gulf Shire Council,<br />

2011).<br />

The NT Government’s approach to health care recognises the complexity of providing health care to relatively<br />

low populations of people located across a substantial land area. It also recognises the challenges associated<br />

with attracting and retaining health professionals in remote areas.<br />

The establishment of a government-funded 24-hour health hotline staffed by highly competent personnel<br />

complements the work done by Community Health Centres. Approximately 30% of the NT population is<br />

serviced through this hotline, and referred to specialist services in regional centres as required. The<br />

Borroloola Health Clinic is one of the Community Health Centres that welcomes the support of the 24-hour<br />

telephone hotline. Patient surveys indicate a high level of satisfaction with this hotline service, however it is<br />

important to recognise that this telephone medical assistance will never replace face-to-face medical services<br />

as a critical element of service delivery in remote communities.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 24


Situation Analysis<br />

There are no public hospitals in the Gulf Region. According to the NT Growth Town initiative’s draft<br />

Borroloola LIP, between 2003 and 2004, Indigenous people in the Borroloola CGC SLA were hospitalised for<br />

diseases associated with poor environmental health (such as nutrition, lack of exercise and diabetes) at a rate<br />

of 90.7 per 1,000 (NT Government et al., 2011).<br />

The Borroloola Health Clinic provides basic public health services and up until 2009, was staffed by one<br />

general practitioner (GP) and nursing support. In 2009, MRM supported the engagement of this GP through<br />

NT Health in what is the mine’s largest annual sponsorship commitment. The MRM sponsorship involves:<br />

• underwriting a percentage of the GP’s time for after-hours consultations at the clinic in order to help<br />

provide improved accessibility to health services in the Borroloola community<br />

• providing annual financial incentives for the GP to remain in the community<br />

• providing return airfares for the doctor and family to Darwin.<br />

In 2009-10, there were a reported 11,162 episodes of care, with 91% reported as care for Indigenous clients<br />

(NT Growth Towns initiative draft Borroloola LIP). The Clinic provides home care, and as reported by the<br />

draft plan, undertook care for 21 reported ‘Home and Community Care’ clients in 2008-09, all of whom<br />

were Indigenous.<br />

MRM has also supported the provision of higher standards of health care through the development of the<br />

Borroloola Renal Unit to NT Health specifications and funding support for the provision of x-ray facilities<br />

within the clinic. These additional facilities reduce the need for patients to travel to larger centres such as<br />

Katherine for specialist treatment.<br />

Consultation with Borroloola Health Clinic revealed there is currently concern relating to provision of travel<br />

for elderly patients, whereby those requiring treatment in Darwin are required to travel by charter jet to<br />

Katherine, before embarking on a 5-hour bus journey to Darwin. Reports suggest this is often a gruelling<br />

journey for patients.<br />

A small variety of specialists visit the region occasionally throughout the year, for example, a dentist visits<br />

Borroloola approximately every three months. For specialist dental treatment, patients are recommended to<br />

specialists, with Katherine being the nearest centre.<br />

In terms of emergency services for the region, the Borroloola Police Station acts as the centre for dispatch<br />

and management of emergency situations. There are a number of small airports for use in the event of a<br />

severe medical emergency, however most situations are adequately dealt with on a local level.<br />

From an emergency first aid perspective, the MRM Emergency Rescue Team provides assistance as required.<br />

This team is trained in essential rescue requirements, such as occupational first aid training, road accident<br />

rescue, hazardous material handling and vertical rope rescue, and won the 2010 North Australian Emergency<br />

Rescue competition.<br />

The establishment of the Borroloola Safe House in 2007 provides temporary respite measures for women and<br />

children who are victims of domestic violence.<br />

In addition to the Borroloola Health Clinic, a number of other health-related programs are currently in<br />

operation in the community, including:<br />

• Meals on Wheels<br />

• Substance abuse support<br />

• School screening<br />

• Aged screening<br />

• Men and women general wellness checks<br />

• Under-5 screening<br />

• Immunisation<br />

• Chronic Disease Outreach<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 25


Situation Analysis<br />

• Maternity / child health<br />

• Communicable disease reporting and<br />

management<br />

g. Income and Employment<br />

• Home visiting services<br />

• Palliative care.<br />

The 2006 Australian Government Report: Employment Opportunities, Borroloola reported there were a total<br />

estimated 40 employers in the Borroloola community, including eight employers in the community services<br />

area (Australian Government Department of Employment and Workplace Relations, 2006).<br />

Many people in the Borroloola and Gulf Region are employed through the Australian Government-funded<br />

Community Development Employment Project (CDEP) program, introduced in 1977. The CDEP program aims<br />

to assist Indigenous job seekers to gain skills, training and capabilities to find sustainable employment and<br />

improves the economic and social wellbeing of remote communities. Australian Government reforms to the<br />

program are underway. The program continues in the Borroloola and Robinson <strong>River</strong> areas, however is due<br />

to end in 2012.<br />

The program is managed in Borroloola by Mabunji Aboriginal Resource Association, which employs more<br />

than 300 people under the scheme, and in Robinson <strong>River</strong> by Mungoorbada Aboriginal Corporation,<br />

employing almost the entire Robinson <strong>River</strong> adult community under the scheme.<br />

There is a diversity of employers in the region, both private and public, and ranging from small to mediumsized<br />

businesses and organisations representing a range of industry sectors including retail, agribusiness,<br />

pastoral, health and community services, trades, education, transport, civil engineering, mining and tourism.<br />

The largest private employer is MRM.<br />

The workforce statistical breakdown is detailed in Table 3.<br />

Table 3: Workforce Statistical Breakdown<br />

Gulf SLA and Borroloola CGC<br />

SLA<br />

Australia<br />

Total<br />

number<br />

Percentage of<br />

total number<br />

Total<br />

number<br />

Percentage of<br />

total number<br />

Total labour force<br />

(aged 15 – 64 years)<br />

Employed (full-time, part-time, away<br />

from work or hours not stated)<br />

543 100% 9,607,987 100%<br />

517 95.21% 9,104,183 94.7%<br />

Unemployed 26 4.78% 504,804 5.2%<br />

Not in the labour force<br />

(Percentage of the population aged<br />

15 - 64 years)<br />

Labour force participation rate<br />

(Percentage of the population aged<br />

15 – 64 years)<br />

354 39.5% 3,665,715 27.6%<br />

543 60.53% 9,607,987 68.6%<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 26


Situation Analysis<br />

Source: ABS 2006<br />

The participation rate of people aged between 15 and 64 years in the workforce is lower in the Gulf SLA and<br />

Borroloola CGC SLA region at 60.53% compared with the rest of Australia at 68.6%.<br />

The largest single employment category was indicated as being the Public Administration and Safety sector,<br />

employing 42.1% in the Gulf SLA and 48% in the Borroloola CGC SLA.<br />

This workforce allocation is due to the prominence of employment under the CDEP scheme. Through<br />

consultation, concern was evident regarding imminent cessation of the CDEP scheme in 2012, with an<br />

expected decrease in labour force participation, potential flow-on effects relating to decreased work ethic<br />

and an increase in anti-social behaviour, and impacts on availability and capacity of services in the area (i.e.<br />

when employees currently with the CDEP scheme are no longer employed to carry out current tasks, there<br />

will be a natural decrease in capacity and services).<br />

Many who raised this as an issue saw the proposed Project as an opportunity to overcome some of the issues<br />

associated with CDEP coming to an end.<br />

‘The CDEP is going to close next year and we need something to go on. Like a business, so we can create<br />

work, jobs.’<br />

Taken from meeting held with Robinson <strong>River</strong> community members on 10 August 2011.<br />

‘I think, at the end of the day, CDEP is going to be dropped in Borroloola. It’s about time people should<br />

think, ‘well, you, there’s jobs.’ If you can’t work in Borroloola and can’t find a job here ... there’s<br />

opportunities (at the mine), so to save you dropping off CDEP to go on the dole, the government should<br />

be able to say, ‘well look, there’s sixty jobs at the mine.’ And make it an understanding….’<br />

Taken from meeting held with the Mabunji Board on 3 August 2011.<br />

Occupations nominated in the ABS 2006 Census (ABS 2006) are detailed in Table 4. The highest nominated<br />

work-type was labouring, conducive with the type of work generally carried out by employees under the<br />

CDEP scheme.<br />

Table 4: Nominated Occupations<br />

Gulf SLA and Borroloola CGC<br />

SLA<br />

Australia<br />

Total number<br />

of labour<br />

force<br />

Percentage of<br />

labour force<br />

Total number<br />

of labour<br />

force<br />

Percentage of<br />

labour force<br />

Labourers 231 42.54% 952,520 10.5%<br />

Professionals 59 10.86% 1,806,010 19.8%<br />

Technicians / trades workers 46 8.47% 1,309,258 14.4%<br />

Managers 42 7.73% 1,202,267 13.2%<br />

Community and personal service<br />

workers<br />

39 7.18% 801,906 8.8%<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 27


Situation Analysis<br />

Gulf SLA and Borroloola CGC<br />

SLA<br />

Australia<br />

Total number<br />

of labour<br />

force<br />

Percentage of<br />

labour force<br />

Total number<br />

of labour<br />

force<br />

Percentage of<br />

labour force<br />

Machinery operators / drivers 20 3.68% 604,616 6.6%<br />

Clerical / administrative workers 19 3.5% 1,365,805 15.0%<br />

Sales workers 14 2.57% 896,208 9.8%<br />

Source: ABS 2006<br />

Average income levels for individuals, households and families are significantly lower when compared with<br />

Australian averages, with individuals usually resident in the Gulf SLA earning approximately 49% less than<br />

the average Australian, and individuals usually resident in the Borroloola earning approximately 56% less<br />

than the average Australian (ABS 2006) as detailed in Table 5.<br />

Table 5: Median Income<br />

Gulf SLA Borroloola CGC SLA Australia<br />

$ / week $ / year $ / week $ / year $ / week $ / year<br />

Median individual<br />

income<br />

Median household<br />

income<br />

Median family<br />

income<br />

230 11,960 263 13,676 466 24,232<br />

645 33,540 1,012 52,624 1,027 53,404<br />

597 31,044 772 40,144 1,171 60,892<br />

Source: ABS 2006<br />

Income per household is similarly lower than Australian averages with 52.5% of households in the Gulf SLA<br />

earning less than $1,000 per week compared to 42.7% in Australia. Interestingly, the household earnings<br />

profile of the Borroloola CGC SLA is closer to Australian averages as shown in Table 6.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 28


Situation Analysis<br />

Table 6: Total Household Earnings Per Week<br />

Gulf SLA Borroloola CGC SLA Australia<br />

Total<br />

number of<br />

occupied<br />

dwellings<br />

Percentage<br />

of<br />

occupied<br />

dwellings<br />

Total<br />

number of<br />

occupied<br />

dwellings<br />

Percentage<br />

of<br />

occupied<br />

dwellings<br />

Total<br />

number of<br />

occupied<br />

dwellings<br />

Percentage<br />

of<br />

occupied<br />

dwellings<br />

Negative / nil 4 3% 0 0% 82,221 1.15%<br />

Under $500 22 16% 14 10% 1,307,779 18%<br />

$500 – $1000 45 33.5% 35 25.7% 1,678,098 23.5%<br />

$1000-$2000 25 18.6% 39 28.6% 2,114,369 29.6%<br />

$2000+ 11 8% 19 14% 1,159,436 16%<br />

Source: ABS 2006<br />

While the Borroloola results are influenced by the more diverse local economy than the Gulf SLA and broader<br />

range of nominated occupations, another factor is the number of local people employed directly by MRM.<br />

While Table 6 refers to ABS 2006 statistics, the mid-year level of local employment indicates that 52 local<br />

employees are engaged by MRM. The current average salary of MRM EBA employees is $101,500 while the<br />

current local area average salary is $85,000 (MRM, October 2011).<br />

MRM is one of the largest employers in the region with its local employees representing 6.7% of the total<br />

population (based on ABS 2006 figures).<br />

h. MRM Employment – Construction and Operation (including Accommodation)<br />

Performance between 2006 and 2010<br />

Consultation for the Project has shown local community members and stakeholders are positive about the<br />

benefits MRM has provided for the community, and are optimistic about the potential for additional<br />

employment opportunities for locals presented by the Project.<br />

This optimism stems from the employment performance of MRM since 2006 when it converted from<br />

underground to open pit mining.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 29


Situation Analysis<br />

Figure 4: Total MRM Workforce as at 31 December 2006 - 2010<br />

Since 2006, the number of permanent employees engaged by MRM has increased by 100% to 282.<br />

Contractor numbers have fluctuated during this period due to the civil works required for the open pit<br />

conversion and finalisation of procurement arrangements for outsourced site services including camp<br />

management, catering and fleet operation.<br />

Figure 5: Local MRM Workforce Participation<br />

Over the same period, the percentage of local employees has remained relatively steady between around<br />

17% and 21%. Importantly, the composition of this local employment base has also changed as the<br />

Indigenous workforce participation rate increased. The number of employees identifying as being of<br />

Indigenous descent has increased from 6 to 59. This has surpassed a target of 20% Indigenous workforce<br />

participation which was set in 2007.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 30


Situation Analysis<br />

Figure 6: MRM Indigenous Workforce Participation<br />

Source: MRM Sustainable Development Data, 2006-2010<br />

As a condition of approval of the open pit development, MRM was required to establish a Trust to support<br />

the social and economic development of the Gulf Region in partnership with the NT Government. A legal<br />

agreement between MRM and the government for the establishment of the MRM Community Benefits Trust<br />

(the Trust) in July 2007 detailed among its objectives, to:<br />

• “enhance the positive social and economic impact of MRM’s mining operations resulting from the<br />

open pit mining operations on the community and the region as far as is reasonably practicable; and<br />

• create jobs and training opportunities.”<br />

Further to this, a specific commitment was made under the Agreement for MRM to “establish a target of<br />

20% Indigenous employment across its workforce”.<br />

As a result, MRM substantially reviewed its Indigenous employment and training strategy to place greater<br />

emphasis on culturally sensitive recruitment practices, pre-employment training, community and mine-based<br />

mentoring support, and the development of nine potential career paths within the operations for entry level<br />

trainees. The acquisition of a $1 million heavy machinery simulator in 2007 has also been instrumental in<br />

retaining and engaging young Indigenous trainees and supporting their development into permanent career<br />

positions as machinery operators.<br />

This strategy is captured within the Pathways to Employment program and has been supported by grant<br />

funding from the Trust.<br />

Between 2007 and 2009, the program targeted Indigenous residents of the Borroloola Region only into entry<br />

level traineeship positions and apprenticeships. Since then, skilled Indigenous employees from other parts of<br />

the Northern Territory have also been engaged through direct recruitment and FIFO to MRM.<br />

Project Construction and Operation<br />

With specific reference to the Project, MRM anticipates the current percentages of local employees and<br />

Indigenous workforce participation to be sustained.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 31


Situation Analysis<br />

The construction phase will extend over a two-year period. During this time, site-based workers will peak at<br />

approximately 900. Indirect job creation will occur throughout the NT and other areas of Australia as a result<br />

of the Project and procurement contracts.<br />

MRM is an equal opportunity employer and MRM’s policy ensures workers are sourced from all age, gender<br />

and ethnic groups where possible. The construction labour force is likely to reflect general industry trends<br />

within the NT and interstate. Under this assumption, the construction workforce will generally be single<br />

males aged between 18 and 35.<br />

Where possible, appropriately skilled construction workers will be sourced from the local area, however it is<br />

anticipated that the majority will be employed on a FIFO arrangement. They will fly in from Darwin, work at<br />

the mine site during their rostered time on, and then fly back to Darwin for their rostered time off. Although<br />

the base for FIFO operations is Darwin, it is anticipated that a percentage of personnel will come from<br />

interstate and even internationally. The workforce will be accommodated in purpose built camp facilities onsite.<br />

These facilities are fully self sufficient, meaning workers have no need to travel to Borroloola.<br />

Resourcing the construction workforce is a national issue, rather than simply a local or NT issue. As outlined<br />

in the Australian Government’s National Resources Sector Employment Taskforce Report, Resourcing the<br />

Future (2010), the resources economy is supported by the engineering and construction sectors. Work in this<br />

sector is undertaken primarily on FIFO or drive in - drive out (DIDO) basis by workers in every state and<br />

territory. As a result, resource projects directly compete for staff in a national labour market.<br />

At construction peak, expected to occur in 2013, the majority of construction, contractor, operations and<br />

management staff will operate on a 14-days on / 7-days off, 12-hour daily roster.<br />

As at December 2010, MRM’s total workforce was 444. Preliminary workforce planning anticipates an<br />

additional 110 permanent employees will be required in the expanded operations. MRM will remain<br />

predominantly a FIFO operation should the Project proceed. Planning under the EIS anticipates the proportion<br />

of Indigenous employees will be maintained at 21% and the proportion of local employees will be sustained<br />

at 18.5%.<br />

During general operations, production employees operate on a 7-days on / 7-days off, 12-hour daily roster.<br />

The majority of support and management staff work a 5-days on / 2-days off, followed by 4-days on / 3-days<br />

off, 12-hour daily roster.<br />

Currently, the majority of staff are employed under an enterprise agreement, which expires in mid-2012 and<br />

therefore is subject to review.<br />

As with employment during the construction period, new employees required as a result of the development<br />

will be hired predominantly from Darwin or other regions where skilled labour is available but also from the<br />

local Gulf Region.<br />

People in the local area strongly indicated through consultation they saw an important benefit of the<br />

proposed Project related to employment and job opportunities at the mine. Stakeholders felt local people<br />

employed at the mine were experiencing benefits, and saw positive opportunities in the possibility of<br />

expanding these benefits to more members of the community.<br />

“More employment is a positive, and it provides more structure to the lives of the locals.”<br />

Taken from meeting held with the Borroloola Police on 19 July 2011.<br />

“The most important thing to come out of this project is employment for our children.”<br />

Taken from meeting held with Traditional Owners – Yanyuwa Group on 29 July 2011.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 32


Situation Analysis<br />

“For those locals who work at MRM, there is a real sense of pride, both for the individual worker and the<br />

township as a whole.”<br />

Accommodation<br />

Taken from meeting held with Safe House on 20 July 2011.<br />

The construction workforce will be accommodated in a temporary construction camp and within the existing<br />

accommodation facility. The temporary construction camp will be located at the site of the construction<br />

camp used during the 2006 to 2009 development, which is on the southern side of the main road through<br />

the existing MRM accommodation camp.<br />

The existing on-site accommodation camp will be used for the operational workforce of the expanded open<br />

pit mine. This consists of self-contained accommodation units, communal dining facilities and recreational<br />

facilities, such as a gymnasium and tennis courts.<br />

This camp will be extended to the north of the current camp to house additional staff.<br />

i. Service Revenue<br />

Between 2007 and 2010 MRM has directly contributed more than $888 million to the economy in the NT<br />

through wages, utilities, the purchase of goods and services, community partnerships and royalties. Direct<br />

economic value distributed is outlined in Figure 7.<br />

Figure 7: MRM Economic Value Generated including NT Procurement (AUD)<br />

Source: MRM Sustainable Development Data, 2007-2010<br />

Wherever possible, MRM encourages the development and use of local suppliers and contractors, and has a<br />

policy of supporting local suppliers who provide value for money and quality. MRM defines a ‘local’ supplier<br />

as a supplier from the nearest regional centre with proximity to their mining operations. MRM also assesses<br />

businesses based on their involvement in community support programs or local social initiatives.<br />

In the first full year following the mine’s conversion to an open pit operation, MRM targeted an increase in<br />

spending with NT suppliers of around 15%. This was heavily surpassed, with MRM achieving an increase of<br />

around 58% more procurement from NT suppliers, accounting for more than $112 million with 433<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 33


Situation Analysis<br />

suppliers. This included an 18% increase to $7.3 million in the value of contracts with local Borroloola<br />

suppliers.<br />

MRM has worked closely with suppliers, partners and contractors to assist them in developing and<br />

implementing sustainable development policies and standards. This has included working to renew<br />

agreements in 2010 and 2011, ensuring that sustainable development policies and standards are in place.<br />

This process has involved conducting an accreditation survey to evaluate the organisations’ sustainable<br />

development practices. Where an organisation cannot demonstrate a robust process and is unable to meet<br />

minimum standards, MRM will work with them to develop a program providing policies and standards to<br />

interpret and adapt to suit their particular business needs. The same process applies to MRM should an<br />

organisation have more in-depth procedures and policies. To be included on the MRM supplier listing, all<br />

companies must meet and continue to meet the set accreditation requirements.<br />

It is important to note that while the proposed Project seeks to double production, this does not equal a<br />

doubling of supplier usage or revenue.<br />

j. Education<br />

There are a number of challenges faced in the delivery of education across the NT. These include the remote<br />

locations of many communities such as Borroloola, and high staff turnover – the average stay of a teacher in<br />

a remote community is just nine months – meaning it is likely that students will have two or more teachers<br />

over the course of a year. The NT Government Department of Education and Training (DET) has developed a<br />

number of strategies to manage these challenges, including mobile education tools that are taken from<br />

community to community, distance education programs, the development of curriculum and teaching<br />

materials that support quality education regardless of a change in teachers.<br />

At a local level, the following government schools operate in Gulf Region towns and communities:<br />

• Borroloola School<br />

• Robinson <strong>River</strong> School Kiana School (located at Kiana Station).<br />

Borroloola School and Robinson <strong>River</strong> School are located in the Gulf Region. The Borroloola School offers<br />

primary and secondary schooling up to Year 12 externally, while Robinson <strong>River</strong> School is primary only.<br />

The number of people attending education institutions in the region is given in Table 7.<br />

Table 7: Students Attending Educational Institutions<br />

Gulf SLA and Borroloola CGC SLA<br />

Australia<br />

Number of<br />

students<br />

enrolled<br />

Percentage of<br />

students<br />

enrolled<br />

Number of<br />

students<br />

enrolled<br />

Percentage of<br />

students<br />

enrolled<br />

Total attending education 494 100% 6,221,513 100%<br />

Pre-School 16 3.23% 307,820 4.94%<br />

Primary School 194 39.27% 1,696,798 27.27%<br />

Secondary school (external) 55 11.13% 1,275,137 20.5%<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 34


Situation Analysis<br />

Gulf SLA and Borroloola CGC SLA<br />

Australia<br />

Number of<br />

students<br />

enrolled<br />

Percentage of<br />

students<br />

enrolled<br />

Number of<br />

students<br />

enrolled<br />

Percentage of<br />

students<br />

enrolled<br />

Technical or further<br />

education<br />

4<br />

0.8% 428,033 6.87%<br />

University or other tertiary 9 1.82% 745,457 12%<br />

Other 8 1.62% 127,980 2.05%<br />

Source: ABS 2006<br />

The NT Growth Towns initiative draft Borroloola LIP reports a total of 135 students were enrolled between<br />

pre-school and Year 11 in Borroloola School in August 2009 (NT Government et al., 2011). The 2006 Census<br />

showed school-aged the Borroloola CGC SLA school-aged population (ages five to 14) was 147 (ABS, 2006).<br />

The draft plan states there was an increase in yearly average attendance from 49.6% in 2008 to 54.7% in<br />

2009, together with an increase in average enrolments from 131 to 145 students. However, the attendance<br />

rate in 2009, at 53% was lower than that of 2001, being 65%.<br />

Levels of education in the Gulf and Borroloola areas are lower in comparison with Australian averages, with<br />

13% of people in each area having completed Year 12, compared with 42% in Australia.<br />

Table 8 illustrates the results for highest level of education achieved in the Gulf SLA and Borroloola CGC SLA<br />

compared with the Australian average.<br />

Table 8: Highest Level Of Education<br />

Gulf SLA and Borroloola CGC SLA<br />

Australia<br />

Total of people<br />

aged 15 years<br />

and over<br />

Percentage<br />

Total of people<br />

aged 15 years<br />

and over<br />

Percentage<br />

Total of people aged over<br />

15<br />

High school – Year 12<br />

completed<br />

High school – Year 10<br />

completed<br />

968 100% 15,918,076 100%<br />

125 12.9% 6,723,224 42%<br />

209 21.6% 3,638,036 23%<br />

Postgraduate 0 0% 413,101 2.5%<br />

Graduate diploma /<br />

certificate<br />

6 0.6% 228,550 1.5%<br />

Bachelor 24 2.5% 1,840,660 11.5%<br />

Certificate 94 9.7% 2,662,780 17%<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 35


Situation Analysis<br />

Source: ABS 2006<br />

Low levels of education correlate with low numeracy and literacy levels, which indicated students in the area<br />

achieve below the national minimum standard for literacy, but at or above the minimum standard for<br />

numeracy (NT Government et al., 2011).<br />

Traditionally, there have been limited opportunities for tertiary or vocational training in the region. The<br />

nearest regional centre for the Charles Darwin University and TAFE is Katherine, and only some studies can<br />

be completed externally through these institutions.<br />

The Batchelor Institute of Indigenous Tertiary Education has a presence in Borroloola which extends to<br />

providing a study facility for students completing courses through the Institute. Half of the facility is rented<br />

by Industry Services Australia to provide vocational training.<br />

While the Batchelor Institute is able to provide first aid training, literacy and numeracy programs, and is a<br />

base-point for local students wishing to undertake formal university degrees, currently there are no<br />

permanent staff at Borroloola. Students undertaking degrees are called into the main Batchelor campus<br />

located in Darwin for block release study periods of around two weeks at a time, and complete the rest of<br />

their study at home in Borroloola, using the Batchelor study facility to ensure a quiet place of study which<br />

provides computers and connectivity.<br />

The Batchelor facility in Borroloola was designed in consultation with Traditional Owners and Indigenous<br />

leaders to ensure cultural requirements were met (eg. providing separate men’s and women’s areas).<br />

MRM is currently involved in a number of DET initiatives, including the Strong Start, Bright Future: Borroloola<br />

Employment Pathways agreement, a three-year program for better vocational education and training (VET)<br />

within the school system executed on 29 August 2011. The Program will receive a grant of $1 million over<br />

three years from the Trust, which will contribute to a series of initiatives to be delivered in partnership<br />

between DET, Borroloola School and MRM. The program has been proven in other NT communities to help<br />

provide a pathway toward education and training through school to employment. In Borroloola, the<br />

agreement covers a trainer for the Borroloola School and accredited training for students, computers and<br />

resourcing for a Frequent Attender Rewards program. This embedded trainer model is a new initiative which<br />

will provide learnings for other partnering arrangements in the Territory to provide long sustainable<br />

employment pathways.<br />

This program aims to increase school attendance to 90% of all eligible students, and help equip students<br />

with skills necessary to sustain employment, whether at MRM or in another local industry.<br />

k. Pastoral Industry<br />

The Gulf Region is marked by poor soil fertility and low stock carrying capacity. The landscape is generally<br />

typified by soils that are shallow, coarsely textured and stony, and vegetation of open woodland is dominated<br />

by eucalypts. Grazing country is highly variable throughout the region due to a large variety of soil types. As<br />

a result, the available good land is generally used for fattening cattle while poorer areas are utilised for<br />

breeding.<br />

The general trend within the Gulf Region cattle market is to send crossbred cattle into supply chains in<br />

Queensland. While some properties sell cattle for export, the majority go into the supply chains of feedlots<br />

and abattoirs for the domestic market.<br />

As the area receives an average annual rainfall of about 500 mm, it has long been considered one of the NT’s<br />

premier cattle breeding areas. The wider Barkly region still contributes the bulk of the NT’s cattle production,<br />

but improved management over the past 20 years has transformed the productivity of other areas, such as<br />

the Sturt Plateau.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 36


Situation Analysis<br />

<strong>McArthur</strong> <strong>River</strong> Station<br />

All MRM leases are encompassed by the pastoral land of <strong>McArthur</strong> <strong>River</strong> Station, 100% owned by Colinta<br />

Holdings Pty Ltd, an Xstrata subsidiary. The mine site is contained within five adjacent mineral leases<br />

(MLN1121, MLN1122, MLN1123, MLN1124 and MLN1125), which are located on the <strong>McArthur</strong> <strong>River</strong> Station<br />

Pastoral Lease.<br />

<strong>McArthur</strong> <strong>River</strong> Station stocks approximately 10,000 head of cattle over 8,000 km 2 , using approximately one<br />

third of the area for grazing. Cattle are excluded from the mining and processing areas.<br />

Figure 8: Map of <strong>McArthur</strong> <strong>River</strong> Station<br />

Other regional pastoral enterprises are owned by private people, companies and Aboriginal groups.<br />

As the proposed Project is contained within the currently mining leases, no impacts are expected to be felt on<br />

either the surrounding <strong>McArthur</strong> <strong>River</strong> Station pastoral lease, or other pastoral enterprises in the area.<br />

l. Amenity and Liveability<br />

Borroloola, King Ash Bay and Robinson <strong>River</strong> provide a unique lifestyle alternative that is founded in a close<br />

connection with the natural environment. Discussions with community members highlighted the key<br />

motivation for residing in these areas was access to traditional homelands – this is critical to cultural<br />

teachings and the preservation of spiritual well-being. It is an uncomplicated way of life where importance is<br />

placed on intangible assets (such as a sense of belonging) rather than physical assets.<br />

It has been described as the Territory lifestyle – a relaxed approach to life with a focus on family, community<br />

and recreation activities such as fishing. Consultation with community members highlighted their love of the<br />

area and respect for its traditional place in their history were also key motivations for living there.<br />

Despite community members choosing to live in these areas because of the environmental contact they<br />

provide, amenity in Borroloola, King Ash Bay and Robinson <strong>River</strong> is low. Infrastructure provision and standard<br />

public services such as footpaths, water, drainage and sewerage are below the standards experienced in<br />

other registered towns in Australia. In addition, issues with housing availability, overcrowding and access to<br />

medical assistance (i.e. doctors) contribute to the low amenity of the areas.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 37


Situation Analysis<br />

Regardless, community interest and participation are strong, with a keen focus on connecting with the<br />

natural environment through physical and spiritual means. Family and cultural values are fiercely protected<br />

and this contributes to the sense of community within the towns.<br />

Volunteering is often a key indicator of community vitality and the willingness of community members to<br />

contribute to the growth and wellbeing of their town. Figure 9 provides comparative details of volunteer<br />

involvement in Borroloola, the Gulf SLA and Australia.<br />

Figure 9: Percentage of People Who Undertook Unpaid Volunteer Work in the Preceding 12 Months<br />

Source: ABS 2006<br />

This data, sourced from the ABS, indicates volunteer involvement in the Gulf SLA and Borroloola CGC SLA is<br />

approximately half of the Australian involvement rate. Consultation feedback indicates however that this<br />

statistic is more a reflection of limited opportunities to engage in volunteer work or unpaid work, and a<br />

preference to view some work as cultural business rather than ‘volunteering’.<br />

Despite these percentages, volunteer involvement and recognition of volunteer work in Borroloola, King Ash<br />

Bay and Robinson <strong>River</strong> continue to remain important. In May 2011, MRM sponsored the inaugural<br />

Borroloola Gold Heart Award Night, which recognised the contribution of volunteers in the community. A<br />

large number of people attended this event further reinforcing the importance of community interest and<br />

involvement, while strengthening commitment to each other and the town.<br />

Research suggests the proposed Project would not have any negative impacts on the community’s values,<br />

aspirations, existing lifestyles or enterprises should it go ahead, but rather produce benefits to further<br />

enhance and celebrate the amenity and liveability of the townships, together with providing tangible and<br />

significant opportunities for enterprise establishment, growth and sustainability.<br />

“It will have a positive impact – it will support Traditional Owners to look after country, maintain cultural<br />

ties, and it will be a step in the right direction moving forward.”<br />

Taken from Government Site Tour held on 2 August 2011.<br />

“I have attended the previous community consultations and the level of information being provided has<br />

been good. I’ve only heard positive feedback and comments with regard to the expansion...the feeling is<br />

that there is something for everybody and that everyone will be better off.”<br />

Taken from meeting with local agencies held on 21 July 2011.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 38


Situation Analysis<br />

2.2.2 Socioeconomic Determinants:<br />

a. Factors Affecting Incomes and Productivity<br />

A range of social issues and factors are evident in the Borroloola and Gulf Regions which impact on income<br />

levels and ability to work.<br />

A 2006 paper published by the Australian Government Department of Employment and Workplace Relations,<br />

in conjunction with the Local Government Association of the NT, entitled Employment Opportunities<br />

Borroloola, as part of an ‘Audit of Employment Opportunities in Remote Communities in the NT’ (Australian<br />

Government Department of Employment and Workplace Relations, 2006) states these social issues include:<br />

• alcohol abuse and marijuana use<br />

• domestic violence<br />

• low levels of literacy and numeracy among school-aged to 35-year-old people as a result of poor<br />

school completion rates<br />

• ‘humbugging’<br />

• low level financial skills or education<br />

• low work ethic.<br />

Consultation in the community found concern among Indigenous group leaders regarding attitudes of youth<br />

toward jobs, however it also pointed toward a strong level of support from community leaders in obtaining<br />

employment.<br />

‘Some people ask the mine, ‘we want money, we want royalties.’ But, your answer at the end of the day,<br />

which is good, is ‘We give you money, you come and work.’ And that’s... the sort of culture we want to<br />

drive and make people understand. You’ve got to be able to conduct yourself in a way you want money,<br />

which is what everyone wants, but do it in a cultural sense that all cultures understand. If you want<br />

something from the mine, you have got to be able to go out and work for it, like anyone else.’<br />

Taken from meeting with the Mabunji Board held on 3 August 2011.<br />

‘We worry about employees of the mine. They come back to the community, they got to live with family<br />

you know, and we worry about overcrowding. I’m a bit worried about people coming back – (others)<br />

asking for money, that’s normal.’<br />

Taken from meeting with the Mabunji Board held on 3 August 2011.<br />

‘We have too many applicants lacking basic literacy numeracy, which then goes back to schooling. We<br />

have had some older applicants lacking those basic skills as well.’<br />

MRM General Manager, Ettienne Moller, Mabunji Board Meeting held on 3 August 2011.<br />

‘We say to them ‘don’t drink too much, make the most of the opportunity for work, be a role model for<br />

the young people.’ We are being looked at by the outside as well.’<br />

Taken from meeting with Traditional Owners – Garrawa Group held on 18 August 2011.<br />

MRM further found that during development of its 2008 Indigenous Employment and Training Strategy<br />

(MRM, 2008) issues specific to local people obtaining and maintaining employment with the mine included:<br />

• low standards of health and wellbeing<br />

• social and cultural pressures<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 39


Situation Analysis<br />

• welfare dependency<br />

• lack of family support for a daily work routine, including nutritional and behavioural conditions<br />

• need for supporting programs for women including child care and financial management advice<br />

• failure of local recruits / trainees to reliably pass the daily drug and alcohol test required of all mine<br />

site personnel<br />

• retention of trainees and commitment to completing the traineeship program<br />

• low conversion rate of trainees to long-term employment and further skills training<br />

• cultural impacts on availability of trainees, such as ceremonial duties and family obligations.<br />

Significant action has been taken in the community to help address these issues. This includes:<br />

• The establishment of an Alcohol Management Committee within Borroloola and associated draft<br />

Alcohol and Drugs Management Plan<br />

• Trust investments in programs such as The Smith Family’s Learning for Life program involving<br />

mentoring for parents and work experience programs for school students, enterprise and job<br />

creation activities with Mungoorbada Aboriginal Corporation, Mabunji Aboriginal Resource<br />

Association including youth diversion programs and new business support (see Appendix 3. MRM<br />

Community Benefits Trust Grants approved 2007-2011).<br />

• MRM investments in tertiary scholarships for young people, support for health services (as previously<br />

outlined) and school work experience programs.<br />

b. Land Tenure<br />

Current Gulf Region land usage is identified through categorisation of land tenures. Two key categories<br />

exist:<br />

1. Crown Lands:<br />

• Pastoral leases<br />

• Non-pastoral crown leases, for example Aboriginal Community Living Areas on pastoral leases, multipurpose<br />

usage.<br />

2. Freehold Lands:<br />

• Inalienable Aboriginal Freehold, for example land granted under Australian or Territory legislation to<br />

Aboriginal communities<br />

• Normal freehold, for example private land within Borroloola township.<br />

• Borroloola is a declared town surrounded by land owned by the Aboriginal Land Trust (NT).<br />

Borroloola<br />

In Borroloola, several issues are at play relating to land tenure, which currently means development able to be<br />

undertaken in the town is limited.<br />

1. Flood mapping<br />

• Much of the land surrounding Borroloola is affected by the flood plain of the <strong>McArthur</strong> <strong>River</strong> and<br />

Rocky Creek, which runs through the Borroloola township. The area, which sees a significant annual<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 40


Situation Analysis<br />

wet season between December and March, is at risk of being inundated in certain places as a result.<br />

A hydrology flood plain study is currently underway to ascertain which land is at risk and to ensure<br />

this information is captured and able to be used to inform future area development.<br />

2. Cadastral studies<br />

• Cadastral (boundary) studies are underway to provide updated information to resolve boundary<br />

ambiguities relating to land tenure. Cadastral information currently dates back to the 1800s, and<br />

over the passage of time, accuracy and information has been lost. The NT Government Department<br />

of Lands and Planning is in the process of updating survey data for accurate division of land.<br />

3. Zoning<br />

• The Borroloola town plan is in need of being updated with correct zoning information.<br />

• On completion of flood mapping, cadastral and zoning studies, an accurate picture of Borroloola’s<br />

land tenure is hoped to be clarified. This will assist in allowing future development of the area.<br />

The area within a 100 km radius of Borroloola contains a number of additional minor Indigenous<br />

communities and family outstations placed both in normal freehold land, and within the Garawa Aboriginal<br />

Land Trust to the south-east, the Mambaliya Rrumburriya Wuyaliya Aboriginal Land Trust, and the Janduke<br />

Aboriginal Land Trust.<br />

<strong>McArthur</strong> <strong>River</strong> Station<br />

The <strong>McArthur</strong> <strong>River</strong> Station pastoral lease comprises:<br />

• <strong>McArthur</strong> <strong>River</strong> Pastoral Lease (PL860)<br />

• Tallawah Pastoral Lease (PL864)<br />

• Bing Bong Pastoral Lease (PL868).<br />

MRM spans seven individual mineral leases within the <strong>McArthur</strong> <strong>River</strong> Station pastoral lease, outlined in Table<br />

9.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 41


Situation Analysis<br />

Table 9: MRM Leases<br />

Lease Type Name Lease No. Area (hectares) Term (Years) Expiry Date<br />

<strong>Mining</strong> HYC MLN1121 372.4 25 5/01/2018<br />

<strong>Mining</strong> GLYDE MLN1122 3348 25 5/01/2018<br />

<strong>Mining</strong> BUFFALO MLN1123 3884 25 5/01/2018<br />

<strong>Mining</strong> Emu MLN1124 3283 25 5/01/2018<br />

<strong>Mining</strong> Emu East MLN1125 656.8 25 5/01/2018<br />

<strong>Mining</strong> Bing Bong Port MLN1126 900 25 5/01/2018<br />

<strong>Mining</strong> Batten MLN582 16.4 20 31/12/2019<br />

Pastoral Dredge Spoil PPL1051 89.3 3 31/12/2012<br />

Authorisation Emu Fault AN366 9 2 4/06/20/12<br />

Source: MRM, 2005<br />

Mine leases will not change as a result of the Project, nor is there expected to be any impact or benefit to<br />

land tenure issues in Borroloola.<br />

As MRM exists on a pastoral lease and the proposed Project is contained within the approved mine footprint,<br />

there will be no requirement for any additional land acquisitions or relocations, meaning no new landowner<br />

or lease owner will be affected by the Project.<br />

c. Family Composition<br />

In the Borroloola and Gulf areas, Indigenous family units tend to extend to the language group or clan, and<br />

include mothers, fathers, uncles, aunts, brothers, sisters, cousins, sons and daughters.<br />

The ABS recognises families are an important social unit for maintaining the welfare of people. It advises<br />

policy and research has moved more toward how relationships can be improved between family members,<br />

rather than focusing on the ‘traditional’ form of a family, which is idealised as being a married couple and<br />

their children (ABS, 2011).<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 42


Situation Analysis<br />

Table 10: Family Compositions<br />

Gulf SLA Borroloola CGC SLA Australia<br />

Total<br />

number<br />

Percentage<br />

of families<br />

Total<br />

number<br />

Percentage<br />

of families<br />

Total<br />

number<br />

Percentage<br />

of families<br />

Total families 115 100% 130 100% 5,219,165 100%<br />

Couple families<br />

with children<br />

Couple families<br />

without children<br />

46 40% 66 50.8% 2,362,582 45.3%<br />

43 37.4% 22 16.9% 1,943,643 37.2%<br />

One parent families 19 16.5% 42 32.3% 823,254 15.8%<br />

Other families 7 6.1% 0 0 89,686 1.7%<br />

Source: ABS 2006<br />

Table 10 shows there were a higher number of one-parent families in Borroloola compared with the<br />

Australian average.<br />

Table 11 reveals there is a significantly higher number of people, over the age of 15 who have never been<br />

married, than the Australian average, as follows (ABS 2006).<br />

Table 11: Registered Marital Status<br />

Gulf SLA Borroloola CGC SLA Australia<br />

Total<br />

number<br />

Percentage<br />

of people<br />

aged 15<br />

years and<br />

over in the<br />

region<br />

Total<br />

number<br />

Percentage<br />

of people<br />

aged 15<br />

years and<br />

over in the<br />

region<br />

Total<br />

number<br />

Percentage<br />

of people<br />

aged 15<br />

years and<br />

over in the<br />

region<br />

Married 130 29.9% 121 22.7% 7,900,684 49.6%<br />

Never married 253 58.2% 369 69.4% 5,278,600 33.2%<br />

Separated or<br />

divorced<br />

39 9.0% 35 6.6% 1,801,979 11.3%<br />

Widowed 13 3.0% 9 1.7% 936,813 5.9%<br />

Table 12 shows being in a registered marriage is of less importance socially in the Gulf SLA and Borroloola<br />

CGC SLA regions compared with the average Australian statistics.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 43


Situation Analysis<br />

Table 12: <strong>Social</strong> Marital Status<br />

Gulf SLA and Borroloola CGC SLA<br />

Australia<br />

Number of people<br />

Percentage of<br />

people aged 15<br />

years and over<br />

Number of people<br />

Percentage of<br />

people aged 15<br />

years and over<br />

Married in a<br />

registered marriage<br />

Married in a de facto<br />

marriage<br />

151 20.88% 7,158,697 50.4%<br />

192 26.55% 1,242,793 8.75%<br />

Not married 380 52.55% 5,788,624 40.79%<br />

This indicates the traditional European ideal of marriage is not as relevant in the local area in comparison with<br />

wider Australia. This was highlighted in October 2011 when the first marriage ceremony in 20 years was<br />

conducted in Borroloola.<br />

Kinship Reciprocity<br />

Indigenous kinship and family structures in the Borroloola and Gulf regions are typical of those in other<br />

Indigenous communities, with kinship defining where a person fits within a community and informing their<br />

community rights and responsibilities. At the base of Indigenous kinship is an understanding that the whole<br />

of the family or language group is more important than the individual.<br />

Relations are typically decided on blood relationships, marriage, and wider factors, such as language groups.<br />

There is a level of assumption that items including food, money, clothing, housing and other supplies will be<br />

shared among family members, and family members will share in child-raising and caring for the elderly /<br />

infirm.<br />

‘Humbugging’ is a common issue which occurs among the Indigenous community in Borroloola and the<br />

region. It relates to an expectation within the family structures of Indigenous people that money or other<br />

commodities will be given by those who have it in the Aboriginal community to their family members, and<br />

was raised a number of times during consultation as a local issue.<br />

‘You know, there’s overcrowding and sometimes problems when local employees come back to town -<br />

maybe give them somewhere (to live) at the mine. You can see that some of them are trying hard to keep<br />

their jobs, but they get humbug from family with the extra money they bring back.’<br />

Taken from meeting with the Savannah Way Motel held on 19 July 2011.<br />

‘There are people who get humbugged for the extra money.’<br />

Taken from meeting with Centrelink/ISA held on 26 July 2011.<br />

Often, humbugging involves a level of domestic violence, particularly against those deemed to be vulnerable<br />

(the elderly and infirm, and women). The Borroloola Safe House provides some shelter for women and<br />

children vulnerable to violence.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 44


Situation Analysis<br />

Indigenous people employed with MRM report humbugging as an issue they face in their communities. This<br />

can serve as a disincentive to employment or in some cases, has led local recruits to opt to relocate to Darwin<br />

and FIFO to MRM.<br />

d. Housing<br />

Housing is a significant issue across the NT. Shortages are evident in all areas and is particularly concerning in<br />

Darwin where house price increases over recent years point to a significant gap between supply and demand.<br />

In more remote areas, the housing issues are complicated. Many remote communities, such as Borroloola and<br />

the surrounding region, either have a severe shortage of houses, causing overcrowding, or houses are of<br />

such poor quality they are untenable.<br />

In particular, there is a lack of private housing. While there are opportunities for private investors, there is<br />

uncertainty around land tenure (see Section 2.2.2, b. Land tenure), which is a deterrent to private<br />

development in remote areas. Additionally, the relative isolation and remote location of Borroloola and its<br />

surrounds mean the cost of building new housing is often prohibitive.<br />

As a result, there are difficulties in attracting a suitable general workforce with appropriate experience to<br />

work for prolonged periods in the area. There is a lack of accommodation to house short or long-term<br />

workers and there are further difficulties associated with the expense of transporting building equipment to<br />

the area.<br />

There is a high level of skills in the region to build and construct housing accommodation – the issue faced is<br />

a lack of available freehold land to build on.<br />

These issues across the NT sparked the Australian Government’s National Partnership Agreement on Remote<br />

Indigenous Housing in 2008, which aims to address overcrowding, homelessness, poor conditions of housing<br />

and the severe housing shortage in remote Indigenous communities such as the Gulf Region.<br />

The Partnership incorporates the Strategic Indigenous Housing and Infrastructure Program which will deliver<br />

934 new houses, 415 rebuilds of existing houses and 2,500 refurbishments across 73 remote Indigenous<br />

communities and camps in the NT by 2013 (NT Department of Housing, Local Government and Regional<br />

Services, 2011). It was recently announced that Borroloola would not be addressed by this Program until<br />

2014, which was raised in consultation as being of concern to local people, particularly Indigenous language<br />

group leaders.<br />

Relevant to the Borroloola area, the SIHIP program has $14 million allocated for housing construction and<br />

refurbishment across the four language group camps. In the original proposal, there were 25 houses to be<br />

constructed, and 45 requiring refurbishment. However, negotiations are under way to allocate the funding<br />

in line with Australian Government consultation outcomes. Negotiations are ongoing regarding leases and<br />

land tenures, and action relating to works commencing is not expected to occur until 2014.<br />

In 2009, 67% of dwellings in Borroloola were considered to be overcrowded, with an average of around<br />

3.10 people per bedroom (NT Growth Towns initiative’s draft Borroloola LIP, Schedule C). Such<br />

overcrowding leads to ongoing social concerns such as hygiene problems, disease, domestic tension and<br />

violence (NT Government et al., 2011).<br />

Consultation also identified issues associated with housing and overcrowding in the local area.<br />

‘Housing, overcrowding is a problem. Do you reckon you can build houses? We have to wait for another<br />

two years to get new houses here… can you build them faster than these other mob (the NT<br />

Government)?’<br />

Taken from meeting with Traditional Owners – Yanyuwa Group held on 16 August 2011.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 45


Situation Analysis<br />

Thirty dwellings in 2009 were deemed to be in need of significant capital expenditure (NT Growth Towns<br />

initiative’s draft Borroloola LIP, Schedule C).<br />

The majority of dwellings in the Gulf and Borroloola regions are rented, with a significant number rented<br />

through the NT Government, and a higher number rented from a local co-operative, eg. Mabunji Aboriginal<br />

Resource Association or Mungoorbada Aboriginal Corporation. In Borroloola CGC SLA, more than 45% of<br />

dwellings were shown to be rented through local co-operatives, community groups or church groups (in this<br />

instance, most likely Mabunji Aboriginal Resource Association), in comparison with the Australian average,<br />

where less than 1% of private dwellings rented through housing co-operatives, community groups or church<br />

groups. No dwellings in the Gulf or Borroloola areas are rented through real estate agents.<br />

Table 13: Dwelling Statistics<br />

Gulf SLA Borroloola CGC SLA Australia<br />

Total<br />

Percentage<br />

of total<br />

occupied<br />

private<br />

dwellings<br />

Total<br />

Percentage<br />

of total<br />

occupied<br />

private<br />

dwellings<br />

Total<br />

Percentage<br />

of total<br />

occupied<br />

private<br />

dwellings<br />

Median rent<br />

($/weekly) $15/week - $30/week - $190/week<br />

Fully owned 102 40% 31 18% 2,478,264 32.6%<br />

Being purchased<br />

(includes being<br />

purchased under rent<br />

/ buy scheme) 0 0% 3 1.2% 2,448,205 32.2%<br />

Total rented (includes<br />

rent-free) 81 31.8% 117 68% 2,063,947 27.2%<br />

Rented through real<br />

estate agent 0 0% 0 0% 1,024,191 14%<br />

Rented from State or<br />

Territory housing<br />

authority 3 2.2% 16 11.9% 304,431 4.26%<br />

Rented from housing<br />

co-operative /<br />

community / church<br />

group 48 35.8% 61 45.5% 50,165 0.07%<br />

Rented from other<br />

landlord type,<br />

including government<br />

employers and private<br />

employers 8 5.9% 19 14% 99,451 1.39%<br />

Other / not stated 70 27.5% 23 13.4% 605,765 8%<br />

Source: ABS 2006<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 46


Situation Analysis<br />

Rates of housing stress, defined as stress experienced by lower-income households (in the bottom 40% of<br />

income distribution) who pay more than 30% of their gross income on housing (Yate, J & Gabrielle M,<br />

2006), are minimal. The majority of properties are rented at very low rates ($15 – $30 / week), while the<br />

average household income is between $645 – $1,012 per week, which equates to around 2% – 3% of total<br />

average household income.<br />

The severe housing shortage means property values and housing affordability are not applicable issues in this<br />

instance. Likewise, the rate of rental property vacancy is not an applicable consideration due to this<br />

shortage. The wider issue is that there are not enough houses available, and there are numerous houses<br />

which are untenable. This is also a disincentive for local people to take on employment, as they risk losing<br />

eligibility to be provided NT Government housing due to an increase in their income. With no rental<br />

properties available in the local area, employees of the mine sourced locally often find it is more cost effective<br />

and offers greater liveability benefits to re-locate to a rental property in Darwin and work on a FIFO basis.<br />

‘Then there’s the housing issue, when they get a job at the mine, they lose their house, and there’s<br />

nowhere to rent here, there’s no support for child care, no housing to rent, the incentives... it’s hard.<br />

That’s probably why they go to Darwin.’<br />

‘Land is an issue…land is tied up…it’s a merry go round, those people go away they spend their money in<br />

other places…can this place really get ahead?’<br />

Both quotes taken from meeting with Centrelink/ISA held on 26 July 2011.<br />

2.2.3 <strong>Social</strong> Organisations<br />

a. Facilitating <strong>Social</strong> Involvement in Decision-Making<br />

This section focuses on ‘organisations and capacity at the household and community levels affecting<br />

participation in local-level institutions, as well as local decision-making processes and access to services and<br />

information’ (MCA, 2010).<br />

Outside of elected representation, the communities within the Gulf Region are empowered to contribute to<br />

decisions affecting their lives through a range of organisations. These organisations (see Table 14) also<br />

provide access to services and information specifically relating to the people within the Gulf and Borroloola<br />

areas.<br />

Table 14: Community Organisations<br />

Organisation<br />

Description<br />

Mabunji Aboriginal<br />

Resource<br />

Association Inc.<br />

Mabunji was established in 1982 as a resource centre to service Indigenous people and<br />

their homelands of the Borroloola Region, and now covers some 600 km of the Gulf<br />

Region and Sir Edward Pellew Islands (Mabunji Aboriginal Resource Association Inc,<br />

2010)<br />

Mabunji services 26 outstations / homelands with a total population of approximately<br />

400 Indigenous peoples.<br />

Mabunji is located in Borroloola and is the major employer of Indigenous people,<br />

employing over 300 Indigenous people on a Community Development Employment<br />

Projects (CDEP) Government- funded scheme.<br />

It has also become a key conduit for service organisations, enterprise development and<br />

facilities for which Mabunji auspices and administers grant funding. This includes the<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 47


Situation Analysis<br />

Organisation<br />

Description<br />

management of the Li-Anthawirriyarra Sea Rangers, the local community radio station,<br />

Wanula Creche, and the Waralungku Arts Centre, NAIDOC and Boonu Boonu Festivals,<br />

the Borroloola Beautification Landscaping Project and youth diversionary programs<br />

hosted by local pastoralists.<br />

Mabunji’s operations also include housing maintenance for 189 houses, municipal and<br />

essential services to 22 operational outstations and 4 Town Camps, the Safe House,<br />

Aged Care Centre in Borroloola, mechanical workshop, nursery and 50% ownership in<br />

the Malandari Partnership which operates the Borroloola Bulk Discounts store.<br />

Mabunji employs 135 full-time permanent staff.<br />

It is governed by a 23-person Board comprising: Chairperson; Deputy Chairperson;<br />

executive officers; one Director nominated by each of the four Town Camps and 14<br />

Directors representing the outstations.<br />

The Board decides on activities and initiatives to be pursued by the group.<br />

Mungoorbada<br />

Aboriginal<br />

Corporation<br />

(Robinson <strong>River</strong>)<br />

The Mungoorbada Aboriginal Corporation was incorporated in October 1990 under<br />

the then Commonwealth Aboriginal Councils and Associations Act. It was originally<br />

established as an outstation resource centre with the Robinson <strong>River</strong> community. MAC<br />

is based in and is now recognised as the representative organisation of the Aboriginal<br />

community of Robinson <strong>River</strong> and its surrounding outstations. It is responsible for the<br />

management, administration and operation of all activities not directly undertaken by<br />

Government Departments or their agents. As part of these responsibilities MAC is the<br />

CDEP provider for the region.<br />

The stated objectives of the corporation, according to its Rule Book, are to exercise its<br />

powers on behalf of members in need of assistance to relieve their ‘poverty, sickness,<br />

serious economic disadvantage and social distress’. It holds title to the land of its<br />

members, aiming to overcome homelessness and other disadvantages presented by<br />

poor housing, hygiene and social disintegration. It also aims to assist members in<br />

gaining access to services in the areas of housing, health, education, essential services,<br />

law and social services, together with increased employment opportunities and work<br />

training.<br />

The principal activities undertaken by MAC comprise:<br />

• Management of the community’s affairs and administration<br />

• Municipal services<br />

• Housing management and maintenance of 50 residences<br />

• Management of commercial activities: the community store, crèche, women’s<br />

centre, community infrastructure projects, Centrelink office and civil<br />

construction enterprise<br />

• Pastoral operations with chickens, goat and beef herds<br />

• Supporting community programs through the night patrol, school children<br />

round up, school nutrition program.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 48


Situation Analysis<br />

Organisation<br />

Description<br />

MAC is governed by a board and management team.<br />

Mawurli and<br />

Wirriwangkuma<br />

Aboriginal<br />

Association (MAWA)<br />

MAWA was established in 1994 as an Aboriginal Corporation incorporated under the<br />

Commonwealth Aboriginal Councils and Associations Act and commenced operations<br />

in 1995 as a public benevolent institution to provide charitable cultural and social<br />

welfare support to the Aboriginal community represented by the four language groups<br />

in the Borroloola Region, being the Mara, Yanyuwa, Gurdanji and Garawa people.<br />

MAWA was created to represent and further the business development and Aboriginal<br />

economic advancement of the four Aboriginal language groups of the region.<br />

Its primary revenue generation initiatives are currently:<br />

• 32% share of Carpentaria Shipping Services which operates the Aburri barge<br />

contracted by MRM to transfer bulk concentrate to ships at sea<br />

• 50% share in the Malandari Partnership which operates the Borroloola Bulk<br />

Discounts store.<br />

Through profits generated from these enterprises, MAWA seeks to assist the<br />

Borroloola regional Aboriginal community and its members in the areas of enterprise<br />

and job creation, education, health, sport, culture and social welfare activities.<br />

In particular, MAWA has supported cultural ceremonies and festivals, seed funding for<br />

community based economic ventures, sporting groups, assistance to pensioners,<br />

emergency transport and accommodation assistance for families involved in medical<br />

crises, funeral costs, community radio, night patrol and Sea Ranger programs.<br />

The large MAWA Committee comprises six representatives of each of the four<br />

language groups within the region. It is supported by an outsourced Secretariat service.<br />

MRM Community<br />

Reference Group<br />

The MRM Community Reference Group (CRG), an initiative of MRM, has been active<br />

since 2006. The CRG was established to encourage a greater sharing of ideas and<br />

information between MRM and the communities that surround the mine.<br />

The group is made up of Traditional Owners from the four local language groups as<br />

well as a cross-section of business people and representatives from the Roper Gulf<br />

Shire Council, the NT government and MRM.<br />

Quarterly CRG meetings are an opportunity for MRM’s General Manager and senior<br />

management team representatives to provide information and engage in open<br />

discussion about MRM activities with attendees.<br />

CRG meetings are minuted, and involve discussions such as:<br />

• <strong>Mining</strong> operations<br />

• MRM’s environmental monitoring programs in and around the <strong>McArthur</strong> <strong>River</strong><br />

and the Gulf<br />

• Community sponsorships<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 49


Situation Analysis<br />

Organisation<br />

Description<br />

• Cultural heritage and sites of cultural significance<br />

• Local business, employment and training opportunities<br />

• Community feedback on needs, priorities, ideas and views.<br />

Li-Anthawirriyarra<br />

Sea Ranger Unit<br />

Established by Yanyuwa traditional owners, the Li-Anthawirriyarra (people of the sea)<br />

Sea Ranger Unit manages the Sir Edward Pellew Islands and the riverine and coastal<br />

areas of the south-west Gulf of Carpentaria. The Unit is funded by the Australian<br />

Government Department of Sustainability, Environment, Water, Population and<br />

Communities (DSEWPC) ‘Working on Country’ initiative.<br />

The DSEWPC website states ‘Working on Country’ builds on Indigenous knowledge of<br />

protecting and managing land and sea country, and provides funding for Indigenous<br />

people to deliver environmental outcomes to the Australian Government. Their work<br />

will help to maintain, restore, protect and manage Australia’s environment. (Australian<br />

Government Department of Sustainability, Environment, Water, Population and<br />

Communities, 2011)<br />

The Sea Rangers Unit reports to Mabunji Aboriginal Resource Association.<br />

Alcohol<br />

Management<br />

Committee<br />

Managed by the NT Government, the Alcohol Management Committee is a group of<br />

local residents, government, Police and community organisations who are proactively<br />

developing a Drug and Alcohol Management Plan. The vision for the plan is to:<br />

• Work towards the future to make Borroloola a sustainable, viable, and vibrant<br />

community.<br />

• To encourage and support community efforts to make Borroloola a safe,<br />

healthy and happy place in which to live and raise children.<br />

• To encourage and foster tourism and create a community that is a desirable<br />

place to visit.<br />

• To encourage and foster growth in the community.<br />

The Plan which has been submitted to local and NT Government for approval.<br />

Committee meetings have attracted large numbers of interested community members<br />

with up to 35 people often in attendance.<br />

Borroloola Pool<br />

Committee<br />

The Borroloola Pool Committee includes a number of local representatives and is<br />

facilitated by Roper Gulf Shire Council. The Committee was set up to firstly develop<br />

and now oversee the –provision of the community swimming complex in Borroloola.<br />

Economic<br />

Development<br />

Committee<br />

The Borroloola Economic Development Committee is facilitated by the NT Government<br />

to assist in driving the economic growth of the area.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 50


Situation Analysis<br />

2.2.4 Economic Organisations<br />

a. Local and Regional Businesses and Commercial Structures<br />

A detailed discussion regarding the current composition of the local economy in Borroloola and the Gulf<br />

Region is included in Chapter 16 – Economics in this EIS.<br />

A report issued in 2006 by the Department of Employment and Workplace Relations and Local Government<br />

Association (Australian Government Department of Employment and Workplace Relations, 2006) discusses in<br />

detail various businesses both public and private in the context of them being employment opportunities in<br />

Borroloola.<br />

Services identified as requiring expansion / opportunities in 2006 were:<br />

• expansion to nursery / market garden / landscaping supplies and services<br />

• transport services (i.e. bus or coach line taking residents from Borroloola to Daly Waters or Katherine<br />

regularly)<br />

• fishing ventures / tourism<br />

• hairdressing / community store<br />

• fishing licence (for commercial sale of fresh fish)<br />

• art centre expansion<br />

• working closely with MRM to assist locals in gaining employment.<br />

Consultation with the community revealed other opportunities had been identified as being required in the<br />

local area, such as a bakery or bread run and market garden.<br />

‘There should be a bakery... Century Mine has one. Sometimes we have to wait for a week at a time for<br />

bread – or the trucks – to come in. ...Maybe a market garden.’<br />

2.2.5 Socio-Political Context<br />

Taken from meeting with Yanyuwa community members, 28 July 2011<br />

MRM’s operations are located within the following electoral divisions:<br />

• Federal — Lingiari<br />

• NT — Barkly<br />

• Local — Roper Gulf Shire Council.<br />

The Gulf Region exemplifies how the local impact of national, systemic issues can greatly influence<br />

governance and policy.<br />

The socio-political context within the region is inextricably linked with the history of Indigenous people in<br />

Australia and the current policies which aim to eliminate social disadvantage, empower Indigenous<br />

communities and create better futures. The agenda is dominated by the needs of the Indigenous community<br />

which in the NT, represent 32.5% of the total population but own 49% of the Territory’s property.<br />

This dynamic, as well as a new direction in government programs, are building a sense of empowerment,<br />

ownership and pride among Indigenous leaders to drive the socio-economic development of their<br />

communities. This shift in attitude and responsibility has been observed within the Gulf Region.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 51


Situation Analysis<br />

There are three streams of representation that have both political and social influence:<br />

• elected representation through the Roper Gulf Shire Council and NT Government<br />

• policy and action driven through the Australian Government Department of Families, Housing,<br />

Community Services and Indigenous Affairs (FaHCSIA)<br />

• Indigenous representation through the Northern Land Council and the proposed Katherine Regional<br />

Land Council.<br />

a. Stakeholder Organisations’ Development Goals and Priorities<br />

Roper Gulf Shire Council<br />

Roper Gulf Shire Council headquartered in Katherine was formed in 2008 as a result of local government<br />

reforms implemented by the NT Government.<br />

These reforms were intended to allow residents to determine how their Shire evolves over time. Their aim<br />

was to lead social and economic development in the bush, maximise opportunities within the region and<br />

provide local government services to their region. The reforms saw 54 mostly Indigenous community councils<br />

replaced by eleven shires. This included the previous Borroloola Community Council.<br />

The Roper Gulf Shire Council is divided into 5 wards governed by 11 councillors and led by Mayor, Tony Jack,<br />

from Robinson <strong>River</strong>:<br />

• Never Never Ward<br />

• Numbulwar Numburindi Ward<br />

• Nyirranggulung Ward<br />

• South West Gulf Ward – which covers the Gulf and Borroloola SLA which are the subject of this SIA<br />

• Yugul Mangi Ward<br />

In addition, a local voluntary board with advisory powers has been established and meets regularly in<br />

Borroloola.<br />

The development goals and priorities for the Council are described within its inaugural strategic plan set for<br />

the 2010-2013 period. Its vision is: to be Sustainable, Viable and Vibrant. The mission is to work together as<br />

one towards a better future through effective use of all resources.<br />

The strategic goals are:<br />

1. Strengthen the quality of life in our Shire by working with the community and town residents and<br />

other organisations to identify and support priority social, cultural and recreational needs in order to<br />

build a stronger and healthier Shire.<br />

2. Move towards sustainability by building local economies, employing local people and making the<br />

Council economically sustainable.<br />

3. Care for our environment by promoting protection of the Shire’s natural environment for future<br />

generations, support appropriate enjoyment of lifestyles based on the natural environment and move<br />

towards becoming an environmentally sound organisation.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 52


Situation Analysis<br />

4. Improve our infrastructure by strategically managing legacy infrastructure, plant and equipment to<br />

prolong its working life while concurrently lobbying for funding to repair, replace and increase<br />

infrastructure, fleet, plant and equipment to levels appropriate for our population and locality.<br />

5. Good governance by managing the Shire and its resources with professionalism, transparency and<br />

accountability and in the best interest of all the Shire’s people.<br />

NT Department of Housing, Local Government and Regional Services<br />

The NT Department of Housing, Local Government and Regional Services is responsible for the development<br />

and regulation of local government in the NT. This department provides strategic advice on regional issues,<br />

government support, policy and legislation, monitoring and advice on service delivery, financial management<br />

and operational issues, grants to Councils and administration of local government legislative requirements.<br />

The department also coordinates the whole-of-government approach to the Working Future policy which<br />

provides a vision for remote areas and is part of the Territory 2030 vision. The key priorities within this policy<br />

are:<br />

1. Developing Territory Growth Towns – the biggest remote communities (including Borroloola) will<br />

become proper towns, with services, buildings and facilities like any other country town in Australia<br />

and the economic and service deliver centres for their regions.<br />

2. Homelands and Outstations – Funding for services for homelands and outstations.<br />

3. Remote service delivery – providing services that local people need from both the Australian and<br />

Territory Government. Both governments will be looking at how they can work better to provide<br />

long-term funding so that communities can plan for the future with certainty.<br />

4. Employment and economic development – attracting private investment to support business and<br />

residential property development. This includes a long-term Indigenous Economic Development<br />

Strategy.<br />

5. Remote transport strategy - provision of regular and affordable transport to access services in larger<br />

towns.<br />

6. Closing the Gap Targets and Evaluation – Reporting against the targets set in agreement with all<br />

Australian governments including an evaluation of remote service delivery.<br />

Australian Government FAHCSIA<br />

While the NT is self-governing it does not have the status of a State of the Australian federation. This means<br />

that the Australian Government retains the power to make laws for the Territory, and can override laws of<br />

the Northern Territory Legislative Assembly. The Land Rights Act is a Commonwealth law which applies only<br />

to the Northern Territory.<br />

The Australian Government is also responsible for indigenous policy and programs within the NT as part of<br />

the Closing the Gap commitment to work towards a better future for Aboriginal and Torres Strait Islander<br />

peoples.<br />

A new document, entitled Stronger Futures in the Northern Territory discussion paper and issued in June<br />

2011 sets out priorities for building on the work of the NT Emergency Response. There are three priority<br />

areas:<br />

• school attendance and education achievement – ensuring all children go to school and succeed<br />

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Situation Analysis<br />

• economic development and employment – ensuring indigenous people are part of the Territory’s<br />

economy and that people have jobs<br />

• tackling alcohol abuse – ensuring people and communities do not go on suffering the devastation<br />

caused by too much alcohol.<br />

The government is also consulting on community safety, health, food security, housing, and governance.<br />

Northern Land Council<br />

The Northern Land Council was established in 1973 to represent traditional Aboriginal landowners and<br />

Aboriginal people in the Top End of the Northern Territory of Australia (NLC, 2003).<br />

Its vision is stated as: A Territory in which the land rights of every Traditional Owner are legally recognised<br />

and in which Aboriginal people benefit economically, socially and culturally from the secure possession of<br />

their lands and seas.<br />

The most important responsibilities of the NLC are to consult with traditional landowners and other<br />

Aborigines with an interest in the land.<br />

This is to make sure the landowners as a group give their informed consent before the Land Council or a<br />

Land Trust enters into any agreement, or takes any action affecting their land. It also ensures that affected<br />

Aboriginal communities and groups have the chance to express their views and that land use agreements<br />

entered into are reasonable. These principles are fundamental to the Aboriginal Land Rights (Northern<br />

Territory) Act 1976.<br />

The NLC also acts as a representative body for native title claimants in its area under the Native Title Act<br />

1993.<br />

The NLC provides services in six key areas:<br />

• Land, Sea and Natural Resource Management<br />

• Land Claims and Acquisitions<br />

• Economic Development and Commercial Services<br />

• Advocacy<br />

• Administration and Support Services<br />

• Native Title Services<br />

Katherine Regional Land Council<br />

A proposal has been submitted to the Australian Government pursuant to s21A of the Aboriginal Land Rights<br />

(Northern Territory) Act 1976 and investigated by the Office of the Aboriginal Land Commissioner for the<br />

establishment of a new land council in respect to the area covered by this SIA.<br />

This group would be called the Katherine Regional Land Council and would involve more than 25 language<br />

groups breaking away from the NLC governance structure.<br />

Information distributed in early 2011 indicated the goal of this organisation would be to promote local<br />

decision-making by Traditional Owners.<br />

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Situation Analysis<br />

The community is awaiting the decision of the Minister for Indigenous Affairs, Jenny Macklin, regarding the<br />

proposal. If accepted, then Australian Electoral Commission would hold a vote of all Aboriginal adults in the<br />

proposed area.<br />

b. Commitment to Development Objectives<br />

Throughout the four layers of governance within the community, the commitment to development objectives<br />

is consistent. All groups, local, Territory, federal and Indigenous, are targeting the socio-economic<br />

development of the Territory including the Gulf Region.<br />

The other aspect of these objectives that is consistent is a desire to ensure this development is driven by a<br />

strong, local group of Traditional Owners and Indigenous community that has a greater level of influence and<br />

involvement in the direction of this growth and a share in the financial outcomes.<br />

The commitments are summarised in the table below.<br />

Table 15: Summarised Commitments to Development Objectives<br />

Governance <strong>Social</strong> Priorities Economic priorities<br />

Local government • Raising the quality of life to build<br />

a stronger and healthier Shire<br />

• Environmental protection<br />

• Good governance<br />

• Sustainability – employment and<br />

business<br />

• Infrastructure provision and<br />

management<br />

Territory government • Self determination around<br />

homelands and Outstations<br />

• Improved transport infrastructure<br />

• Good governance<br />

• Territory Growth Towns<br />

development<br />

• Employment and economic<br />

development<br />

Australian<br />

government<br />

Indigenous<br />

representation<br />

• Education<br />

• Drug and alcohol abuse<br />

• Community safety<br />

• Health<br />

• Food security<br />

• Housing<br />

• Good governance<br />

• Land, Sea and Natural Resource<br />

Management<br />

• Advocacy<br />

• Administration and Support<br />

Services<br />

• Native Title Services<br />

• Employment and economic<br />

development<br />

• Economic Development<br />

• Commercial Services<br />

• Land Claims and Acquisitions<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 55


Situation Analysis<br />

c. Control Over Resources<br />

All levels of government and the NLC have representatives based within Borroloola to support the planning<br />

and delivery of government services.<br />

The key indicator of control over resources within the Gulf Region is, in reality, the accessibility to capital to<br />

invest.<br />

Due to the nature of the region and the previously mentioned influence of the dominance of public housing<br />

and CDEP employment, the Roper Gulf Shire Council does not draw on a revenue stream around property<br />

and commercial rates as is common with local governments in other regions of Australia. It is reliant on the<br />

funding support of the NT Government and external partners to facilitate investment.<br />

The funding available to the Local Implementation Plan for Borroloola as a Growth Town and other NT<br />

Government programs within the region competes with demands from other parts of the Territory and<br />

government priorities.<br />

At an Australian Government level, numerous grant programs are accessible to fund social, employment and<br />

economic programs. However, tapping these funds relies upon the capacity of the personnel in the Gulf<br />

community to source programs, prepare submissions and auspice the grants.<br />

As a result, socio-economic development activity within the Gulf Region has benefitted from the<br />

establishment of organisations such as the Trust and the role of non-government organisations in providing<br />

charitable and community services.<br />

d. Relationship With Other Stakeholder Groups<br />

The relationships between the levels of governance within the region and the private and non-government<br />

sector have therefore been important to achieving the desired outcomes within the community.<br />

For example, the Roper Gulf Shire Council Strategic Plan places considerable emphasis on partnerships with<br />

organisations to support economic and environmental objectives.<br />

The NT Government has partnered with MRM to establish the Trust to drive social and economic<br />

development initiatives and as a result, the total value of programs supported by the Trust has been of an<br />

order of magnitude of approximately four times the total amount committed. The Trust has become a<br />

catalyst for investment as programs supported also attract funding from the Australian and NT Governments<br />

and the proponent’s own contributions.<br />

The Australian Government draws on both the commercial and non-government sectors to support regional<br />

programs. For example, federally funded Indigenous employment programs have been utilised by MRM to<br />

support the expansion of trainee programs implemented by the mine.<br />

The Northern Land Council has also partnered with other stakeholder groups such as the Environment Centre<br />

Northern Territory to support objectives within the Gulf Region.<br />

2.2.6 Historical Context<br />

a. Historical Issues and Events (Migration, Relocation)<br />

The NT was first inhabited by Indigenous Australians more than 40,000 years ago, with first European<br />

settlement established in 1869 near Darwin. The four Indigenous groups in the Borroloola and Gulf Region<br />

remain prevalent, with each language group inhabiting and responsible for land as follows:<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 56


Situation Analysis<br />

Figure 10: Language Groups in the Borroloola and Gulf Region<br />

In 1889 the British courts applied the doctrine of terra nullius to Australia, finding that it was a territory that<br />

was ‘practically unoccupied’. In 1979, the High Court of Australia did the same, saying that Australia was a<br />

territory which, ‘by European standards, had no civilised inhabitants or settled law’. It was thought that in<br />

these circumstances, the common law doctrine of native title did not apply to Australia. (National Native Title<br />

Tribunal, 2011)<br />

Then in 1992, in the case of Mabo (No 2), the High Court of Australia made the historic decision to overturn<br />

the doctrine of terra nullius citing that it should not have been applied to Australia and that the common law<br />

of Australia would recognise native title.<br />

Originally, the settlement was part of the colony of South Australia (SA) and remained as such until the NT<br />

Surrender Act 1908 and NT Acceptance Act 1910 were passed. When these acts were passed the NT<br />

officially separated from SA and came under Commonwealth control and a commonwealth minister was<br />

appointed to administer the territory.<br />

Following increasing pressure and momentum for the Indigenous population of the NT to have rights to fair<br />

pay and land, in 1973 the Whitlam Government established the Woodward Royal Commission to inquire as<br />

to how land rights could be achieved within the NT. An outcome of the commission was the bill drafted on<br />

16 December 1976 The Aboriginal Land Rights (NT) Act 1976 and subsequently passed. This Act<br />

commenced on Australia Day the following year, 26 January 1977.<br />

The NT Gulf country is historically renowned as being a harsh and unforgiving environment, with devastating<br />

wet seasons and impossible droughts. For the first European explorers, such as Leichhardt, this land<br />

promised discovery, to adventurers like the overlanders and pastoralists, it provided a vision for future<br />

prosperity and to prospectors, the Gulf country was an untapped resource to unclaimed riches. However to<br />

the estimated 2,500 Aboriginal inhabitants, the Gulf country was their sacred place – their physical and<br />

spiritual home (Roberts, 2005).<br />

As detailed in the 2005 historical novel, Frontier Justice (Roberts 2005), prior to European settlement, large<br />

populations of Indigenous people occupied the Gulf Region. Traditional Indigenous practices centred on<br />

strong attachments to land, sites and customary land management practices, including foraging for food and<br />

other bush resources. Contemporary Indigenous communities maintain many of these cultural practices<br />

throughout the Gulf Region (Roberts 2005).<br />

From the 1870s, cattlemen travelled to acquire vast areas of station land and brought cattle in massive<br />

numbers. This process was devastating to the lagoons and fragile terrain the Indigenous groups had<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 57


Situation Analysis<br />

protected for thousands of years, and served only to strengthen their ties and commitment to the<br />

preservation of their ‘country’.<br />

During these early days, racial conflict often escalated to free violence and retaliation that would extend into<br />

the next century, displacing, and in some areas destroying, the original inhabitants.<br />

Since the introduction of cattle into the Gulf Region in 1869, pastoralists have operated on a number of<br />

stations in the area, including <strong>McArthur</strong> <strong>River</strong> Station and Bauhinia Downs. <strong>McArthur</strong> <strong>River</strong> Station was<br />

formed near the end of 1883 and was, at the time, Australia’s biggest ever cattle station covering some<br />

47,317 km 2 . The station covered almost the entire traditional land of a number of Indigenous groups,<br />

including the Gurdanji people. Because of its size, <strong>McArthur</strong> <strong>River</strong> Station had a significant impact on the<br />

Indigenous people who lived on the land.<br />

While pastoralists are still active within the region, land parcels within major stations were redistributed to<br />

traditional landholders throughout the late 20th century.<br />

2.2.7 Needs and Values<br />

a. Stakeholder Attitudes and Values Determining Whether Development Interventions Are Needed<br />

and Wanted<br />

In the past five years, there has been a significant shift in the attitudes and values of community members.<br />

There is a clear and determined sense of empowerment in the community – that they can drive and play a<br />

key role in their future and the future of their town.<br />

Consultation revealed a common factor in this shift was the sense of self-worth and empowerment that<br />

came from employment, specifically at MRM. Themes of pride, equality, and recognising and seizing<br />

opportunities were strong.<br />

“The workers get off the bus – the miners bus – and they are really happy. They walk with their head held<br />

high, their family waiting for them, with smiles. They are really happy.”<br />

Taken from meeting with Safe House held on 20 July 2011.<br />

The past five years have also seen significant growth in community development planning conducted in the<br />

Gulf Region in relation to the establishment and long term planning for the Trust, the local government<br />

redistribution and formation of the Roper Gulf Shire Council, and the NT Government’s Growth Town<br />

initiatives.<br />

Substantial consultation and engagement has been conducted with community members to inform the<br />

strategic planning of these initiatives. This has unanimously found a desire for change, for a better future for<br />

new generations and for improved living standards and community infrastructure – another indication that<br />

the community wants to take charge of their future and be involved in the planning deliverables.<br />

The prevailing attitudes that are evident in the planning to date are:<br />

1. There is general acceptance that the current living conditions of residents within the Gulf community<br />

are unacceptable and need to be improved.<br />

2. Children are the future of the region and planning must involve investment in their health and<br />

education to ensure the development of opportunities and a clear direction for their future in the<br />

region.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 58


Situation Analysis<br />

3. The Gulf Region and the town of Borroloola are on the threshold of a growth phase which will bring<br />

improved liveability, services and economic development to the region.<br />

4. MRM has a defined life of mine and the community needs to be developed for its sustainability in<br />

the future, even after the mine has closed.<br />

5. Local leaders are empowered to lead change. They are taking an active role in community leadership<br />

based on their pride for the region and sense of commitment.<br />

The values that are commonly shared by residents of the region can be summarised as:<br />

1. Equity – that all local Indigenous language groups and non-Indigenous residents desire to have equal<br />

opportunities and engagement including equal say in the future of the region.<br />

2. Environmental protection – that the natural environment is central to the culture, lifestyle and<br />

livelihoods of local people and must be sustainably managed and protected.<br />

3. Respect – for cultural heritage, individual needs and rights and the contribution of the community in<br />

the planning for the future of the region<br />

4. Succession Planning – the grooming of new generations within families to take responsibility for<br />

cultural and social leadership both within their respective language groups and the community<br />

generally.<br />

2.2.8 Human Rights<br />

a. A Summary Of Prevailing Human Rights For Consideration<br />

Human rights are about equality and fairness for everyone. There are a number of basic rights that people<br />

from around the world have agreed on, such as the right to life, freedom from torture and other cruel and<br />

inhumane treatment, rights to a fair trial, free speech and freedom of religion, as well as universal rights to<br />

health, education and an adequate standard of living.<br />

These human rights are the same for all people everywhere – male and female, young and old, rich and poor,<br />

regardless of our background, where we live, what we think or what we believe.<br />

The protection of human rights is everyone’s responsibility. A shared understanding and respect for human<br />

rights provides the foundation for peace, harmony, security and freedom in our community.<br />

The Universal Declaration of Human Rights (UDHR) is generally agreed to be the foundation of international<br />

human rights law. (United Nations, 2011).<br />

Australia's system of human rights protection has evolved according to its own unique history, and alongside<br />

the international human rights system, during the 100 years since Federation.<br />

Australia has helped develop a range of international human rights laws and standards. We have also<br />

become signatories to them and have ratified them.<br />

The Australian Human Rights Commission is an independent statutory organisation established in 1986 by an<br />

act of the Commonwealth Parliament. Its goal is to foster greater understanding and protection of human<br />

rights in Australia and to address the human rights concerns of a broad range of individuals and groups.<br />

The Commission has statutory responsibilities under the following Australian laws:<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 59


Situation Analysis<br />

• Age Discrimination Act 2004<br />

• Disability Discrimination Act 1992<br />

• Racial Discrimination Act 1975<br />

• Sex Discrimination Act 1984<br />

• Australian Human Rights Commission Act 1986.<br />

The Australian Human Rights Commission Act covers:<br />

• alleged breaches of human rights by the Commonwealth (such as a Australian Government<br />

department) against accepted international standards<br />

• discrimination in employment (public and private organisations) on a range of grounds, such as age,<br />

religion, sexual preference, political opinion, trade union activity and criminal record.<br />

Respect for human rights helps build strong communities, based on equality and tolerance, in which every<br />

person has an opportunity to contribute. Of course, having others respect our human rights comes with the<br />

responsibility that we respect the rights of others (Australian Human Rights Commission, 2006).<br />

<strong>Social</strong> justice is about making sure that every Australian − Indigenous and non-Indigenous − has choices<br />

about how they live and the means to make those choices. <strong>Social</strong> justice is grounded in the practical, day-today<br />

realities of life. It's about waking up in a house with running water and proper sanitation; offering one's<br />

children an education that helps them develop their potential and respect their culture; it is the prospect of<br />

satisfying employment and good health.<br />

<strong>Social</strong> justice also means recognising the distinctive rights that Indigenous Australians hold as the original<br />

peoples of this land, including:<br />

• the right to a distinct status and culture<br />

• the right to self-determination<br />

• the right to land, which provides the spiritual and cultural basis of Indigenous communities<br />

(Australian Human Rights Commission, 2006).<br />

The Aboriginal and Torres Strait Islander <strong>Social</strong> Justice Commissioner advocates for the recognition of the<br />

rights of Indigenous Australians and seeks to promote respect and understanding of these rights among the<br />

broader Australian community.<br />

2.2.9 Cultural Background<br />

a. Cultural Norms and Practices<br />

Indigenous cultural norms and practices are widespread across the Borroloola and Gulf Regions, and while it<br />

is well-known that there is no ‘one’ Indigenous culture, there are norms within communities which are<br />

embedded cultural practices among many Indigenous communities.<br />

Land or ‘country’ is of fundamental and of significant importance to the local Indigenous people (Roberts<br />

2005). It is this spiritual link with the land and natural environment of their ‘country’ which gives each<br />

Indigenous person their sense of identity and lies at the heart of their beliefs, customs and values. In the case<br />

of coastal peoples, ‘country’ includes the marine environment. Currently, there are still community members<br />

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Situation Analysis<br />

who uphold a traditional way of life, demonstrating the deep connection the Traditional Owners have with<br />

their country, and the respect they have for its ability to provide them with food, water and shelter.<br />

With this in mind, the protection and preservation of land is fundamental to the Indigenous culture,<br />

specifically the identification and conservation of sacred sites. Documented historical accounts suggest<br />

where damage to a sacred site has occurred, the owners are held accountable and must pay compensation<br />

to the managers, regardless of whether they were powerless to intervene (Roberts 2005). In extreme cases,<br />

the penalty faced was death. Historically, these were exceedingly serious matters, and remain so today, and<br />

directly influence the way in which Indigenous people react to perceived environmental impacts.<br />

It is a cultural belief that natural disasters such as cyclones and floods, or even epidemics, were the result of<br />

human impact on a sacred site. For example, an influenza epidemic in 1968-69 was believed by older<br />

Yanyuwa members to be a consequence of cattle disturbing a sickness site on Bing Bong Station, north of<br />

Borroloola (Roberts 2005). When Cyclone Kathy devastated the town in March 1984, it was attributed to<br />

Europeans intruding on sites associated with a dangerous rainbow serpent (Roberts 2005).<br />

Community members of Borroloola, King Ash Bay and Robinson <strong>River</strong> are involved in cultural events and<br />

ceremonies relating to the Dreaming, from which stems all traditional law and lore. Of great importance to<br />

the people in the region is cultural preservation, including the responsibility of passing knowledge, arts and<br />

cultural information, performances and ceremonial practices, languages, sacred and significant sites and<br />

important objects through the generations.<br />

Activities relating to preserving local culture have received significant support. In 2009, University of<br />

Queensland Senior Lecturer in Aboriginal and Torres Strait Islander Studies Dr Elizabeth MacKinleay, together<br />

with film-maker Alieta Belle, travelled to Borroloola supported by MRM to film a documentary entitled From<br />

Manankurra to Borroloola. The documentary traced the heritage of local Indigenous women originally<br />

documented in the 2007 film, Big Women from Borroloola.<br />

The NAIDOC festival program and Boonu Boonu Cultural Festival are important annual celebrations of<br />

Indigenous cultural heritage observed in the Gulf Region.<br />

There is a strong artistic community in Borroloola and the Gulf Regions. The Waralungku Arts Centre was<br />

established in Borroloola in 2003, and continues to grow due to local and regional support. The Centre<br />

represents more than 40 artists from the Yanyuwa, Garawa, Gurdanji and Mara language groups. Artists at<br />

the Centre primarily produce paintings of Dreamtime and outback scenery and some were selected to show<br />

their work in the Telstra Indigenous Art Awards in 2010. As the Dreamtime stories are verbally passed down<br />

to the artists from their elders, the art serves a vital cultural heritage purpose.<br />

The Centre also receives international attention. In July 2011, the Centre held an exhibition in London, with<br />

two local artists and an art worker in attendance. MRM supported this through a Trust grant.<br />

On the death of an Indigenous community member, the period of mourning is known as ‘Sorry Business’.<br />

During this time and often well beyond, the deceased person’s name is unable to be spoken. Images of<br />

deceased Indigenous people should not be shown without warning.<br />

b. Places of High Cultural Value<br />

Within the natural environment, sites of cultural significance are located across the region related to the song<br />

lines and Dreaming of each language group.<br />

Within the built environment, the Waralungku Arts Centre and the Language Centre have become places of<br />

high cultural value for the role they play as gathering places for all language groups and forums for sharing<br />

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Situation Analysis<br />

information regarding local culture and educating young people in traditional visual and performing arts. In<br />

late 2011, funding for the local Language Centre ceased and the women who participated in the Language<br />

Centre have now moved to the Waralungku Arts Centre.<br />

Within the mine lease, MRM works closely with Traditional Owners to preserve the cultural heritage of the<br />

local Aboriginal people. This includes respect for local customs and values, together with the protection of<br />

sacred sites within the footprint of the mine’s operations. MRM’s commitment to cultural heritage<br />

management is guided by Xstrata plc’s Business Principles, which uphold and promote human rights within<br />

our areas of influence and respect the cultural heritage, customs and rights of communities. The way in<br />

which MRM delivers on this commitment is articulated in the Cultural Recognition Policy. This policy provides<br />

a mandate for cross-cultural respect and awareness through which MRM has established valued relationships<br />

with local Aboriginal people and Traditional Owners. It also ensures the workforce understands the<br />

traditional rights and culture of Indigenous people and oversees a number of systems and processes to<br />

ensure sites of cultural significance, and matters of cultural interest, are identified and preserved (MRM,<br />

2011)<br />

Extensive studies, including archaeological and ethnographic surveys, have been undertaken to identify and<br />

protect culturally significant sites within MRM’s lease area. These studies have identified 17 sites of cultural<br />

significance that either have a direct link to dreamtime stories or are important to the history and culture of<br />

the local Aboriginal people. These sites are registered with the Aboriginal Area Protection Authority. This<br />

statutory authority of the Northern Territory Government was established under complementary NT<br />

legislation in accordance with the Commonwealth Land Rights Act 1976. The Aboriginal Areas Protection<br />

Authority (AAPA) has issued authority certificates for all the mine’s operational areas in accordance with the<br />

Northern Territory Aboriginal Sacred Sites Act 1989 (MRM, 2011).<br />

MRM preserves and manages the identified sites in line with AAPA conditions. These call for:<br />

• entry to sacred sites to be prevented<br />

• no works that will disturb the ground at sacred sites<br />

• prevention of damage to any vegetation at sacred sites other than for specified purposes<br />

• no material to be stored or machinery parked near the sacred sites<br />

• protective fences and signage to be erected around sacred sites<br />

• aboriginal custodians of the sacred sites to be notified and provided with the opportunity to<br />

supervise any restoration works carried out on the site<br />

• access to the sites to be permitted for cultural purposes.<br />

Protection of cultural heritage was an area of interest across stakeholder groups, particularly how MRM<br />

would identify and preserve sacred sites through the proposed Project. Many acknowledged the work MRM<br />

had done to date in terms of sacred site identification and protection. The majority advised they were<br />

supportive of MRM’s work in cultural heritage management, and expressed desire that MRM continue<br />

working with Traditional Owners in this regard.<br />

“How will MRM protect and identify sacred sites on the mine throughout the Phase 3 Development<br />

Project?”<br />

Taken from Borroloola community meeting held on 23 March 2011.<br />

“You need to look out for Barramundi Dreaming. There is a spring there – you have to look after it.”<br />

Taken from meeting with Traditional Owner – Gurdanji Group held on 16 August 2011.<br />

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Situation Analysis<br />

“We are fine with cultural heritage and sacred sites, so long as Traditional Owners are working with<br />

MRM.”<br />

Taken from meeting with Traditional Owner – Yanyuwa Group held on 29 July 2011.<br />

“It will have a positive impact – it will support Traditional Owners to look after country, maintain cultural<br />

ties, and it will be a step in the right direction moving forward.”<br />

Taken from Government Site Tour held on 2 August 2011.<br />

No impact on cultural heritage sites of significance in the community or region is expected as a result of the<br />

Project. For further information about investigations relating to cultural heritage within the mining lease,<br />

please see EIS Chapter 14: Cultural Heritage.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 63


MRM Contributions<br />

3 MRM Contributions<br />

At various points within this SIA, mention has been made of how MRM has supported various initiatives<br />

within the NT and Gulf communities during the period of 2006 to 2010.<br />

In summary, the key contributions made by MRM have been:<br />

• direct economic value totalling $888 million (since 2007)<br />

• $446 million invested in procurement with NT and locally based goods and service providers 100%<br />

increase in direct employment<br />

• increased Indigenous workforce participation from 4% in 2006 to 21% in 2010 representing a net<br />

increase in the number of employees identifying as being of Indigenous origin from 6 to 59<br />

• the establishment of the MRM Community Benefits Trust in 2007 which has since committed $7<br />

million in grants<br />

• continuation of the mine’s sponsorship and donations program which meets short term needs within<br />

the community including sport, health, recreation, and cultural activities<br />

• active participation and in-kind support for a range of community development initiatives including<br />

the Borroloola Pool Committee, Economic Development Committee for Borroloola, Alcohol<br />

Management Committee and NT Government Growth Town Local Implementation Plan<br />

development<br />

• provision of assistance for infrastructure upgrading including Mule Creek Road and advocacy for the<br />

development of the <strong>McArthur</strong> <strong>River</strong> Bridge.<br />

This section of the SIA provides further information on the contributions generated through the MRM<br />

Community Benefits Trust as this was specifically formed as the vehicle for MRM to channel its support for<br />

the long term, socio-economic development of the Gulf Region, as well as the ongoing program of<br />

sponsorships and donations.<br />

3.1 MRM Community Benefits Trust Outcomes<br />

Stated objectives of the Trust are to:<br />

• facilitate ongoing sustainable development of the community and the region including community<br />

capacity building and local business enterprise development.<br />

• build infrastructure within the community to a level that will facilitate the creation of local jobs,<br />

diversity of new enterprise, beneficial social activity and improved health outcomes.<br />

• enhance the positive social and economic impact of MRM’s mining operations on the community<br />

and the region as far as is reasonably practicable.<br />

• create jobs and training opportunities.<br />

The Trust is governed by a Trustee Board which comprises two Directors nominated by NT Government and<br />

two Directors nominated by MRM, four Indigenous Directors each representing one of the four local<br />

language groups and one Director elected by local community organisations.<br />

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MRM Contributions<br />

3.1.1 Annual Contributions<br />

A legal agreement with the NT Government and MRM for the establishment of the Trust, states the Trust will<br />

be in operation throughout the life of the mine. Currently, this represents a commitment by MRM in the<br />

order of $32 million in total between the Trust’s inception and 2027. Based on the terms of the Agreement,<br />

it is understood that the Trust’s life would be extended with any extension to the mine life by the Project.<br />

MRM currently invests $1.35 million per annum into the Trust for an Initial Period of the Agreement for eight<br />

years. Following this eight-year period to July 2015, the contribution will be scheduled for review. In<br />

planning for the Trust Agreement, it was intended that after the initial period of eight years, the annual<br />

contribution would be $1.25 million for the life of mine subject to annual increases in CPI.<br />

However, under the agreement, this review of the amount committed will take into consideration:<br />

• any variations to the community benefits package that may be desirable<br />

• any variations (upwards or downwards) to the annual contributions<br />

• the timeframe and duration of the application of any variations<br />

• any other variations to this Agreement considered necessary or desirable<br />

• any substantial change upwards or downwards in the economics of the mine (the consideration of<br />

which shall in no way limit the taking into account of other relevant considerations).<br />

Based on current agreements and plans therefore, it is expected the Trust will be extended for another nine<br />

years to 2036 and will benefit from an additional contribution of at least $7.5 million over that time taking<br />

the total commitment of the Trust from in the order of $32 million to $43.3 million over the life of mine.<br />

Community consultation in relation to the Project has shown there is a high level of awareness about the<br />

community contributions the Trust has made in the area so far. It also raised questions regarding the<br />

potential to increase the amount invested in the Trust in line with the increased production planned by the<br />

mine.<br />

‘With the mine expansion, will there be an additional offload to the Trust? Is the life of the Trust to be<br />

extended?’<br />

Taken from MRM CRG held on 11 July 2011.<br />

‘What about the CBT? Will that increase? Is there going to a percentage of the mine profit to go to the<br />

Trust?’<br />

Taken from meeting with the Borroloola Clinic held on 28 July 2011.<br />

‘If this goes ahead, is there any other money that’s going to come out of that expansion to go on to the<br />

Trust?’<br />

Taken from meeting with the Mabunji Board held on 3 August 2011.<br />

MRM’s perspective is that this request needs to be considered within the context of a formal review of the<br />

funding agreement as scheduled by mid 2015. Other relevant considerations that should be factored into<br />

this review are:<br />

• Xstrata Zinc’s corporate social involvement policy which commits 0.6% of earnings before tax to<br />

philanthropic, sponsorship and donation activity<br />

• the status of the Trust in achieving its objectives and commitments<br />

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MRM Contributions<br />

• the broader context of additional investment being attracted to the region through the NT<br />

Government Growth Towns initiative, Roper Gulf Shire Council planning and the potential for other<br />

mining companies currently investigating the opportunity to establish new operations in the region<br />

• the capacity of the community to manage and implement an increased level of grant programs in the<br />

community.<br />

3.1.2 Funding Commitments<br />

As previously indicated, the Trust aims to help achieve the community vision of creating a vibrant, thriving,<br />

healthy region by 2028. This vision was reached as a result of consultation conducted in 2008 to develop a<br />

20 Year Community Development Plan for the Trust, which is reviewed and updated annually.<br />

The Trust produces an annual plan in consultation with stakeholders in the local region outlining planned<br />

priorities for the following year. The Trust also produces an annual review that is an important part of its<br />

governance and transparency and reports on the outcomes of grants approved from the previous year.<br />

These documents are both published on the MRM website .<br />

Submissions for funding support are coordinated by the Trust’s Project Officer and reviewed by an Allocations<br />

and Investments Committee, comprising local Indigenous and community Directors and NT Government and<br />

MRM representatives. This Committee then recommends funding decisions to the Board where a democratic<br />

discussion and vote decides on approved commitments.<br />

The Trust has committed a total of $6.7 million to 30 grants between July 2007 and June 2011, spread<br />

across the identified priority areas shown below. These commitments represent an allocation of 70% of the<br />

available budget and as at June 2011, the Trust had approximately $3 million in unallocated funding<br />

(2010/2011 Annual Plan).<br />

Figure 11: MRM Community Benefits Trust Funding Commitments<br />

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MRM Contributions<br />

The Trust was raised by the community through consultation as being of great interest, with many asking<br />

whether the proposed Project might bring an increased funding allocation through the Trust. The<br />

community indicated clear support for the Trust and the benefits it provides to the community.<br />

‘People might be expecting more in the Community Benefits Trust, but they are quite happy to have it.’<br />

Taken from meeting with the Borroloola Police held on 19 July 2011.<br />

‘The impact of the Project will be positive - more jobs, the Community Benefits Trust... the Trust helps the<br />

kids out. It’s good.’<br />

Taken from meeting with Cairns Industries held on 29 July 2011<br />

A full list of Trust grants as at June 2011 is attached at Appendix 3.<br />

These have shown a strong skew to education as well as enterprise and job creation initiatives in the early<br />

years due to focus on pathways to employment at MRM and within the community.<br />

3.1.3 Outcomes Achieved<br />

Between 2007 and 2011, the key outcomes achieved by the grants invested by the Trust are summarised as<br />

follows:<br />

• an estimated 84 local Indigenous residents undertaking or planned to undertake nationallyaccredited<br />

employment training<br />

• a further 58 new full-time jobs created<br />

• improved sustainability of popular arts and culture facilities and events<br />

• 38 school students participating in work experience and vocational education training<br />

• more than 9,000 breakfasts served to school students and their families<br />

• MRM Indigenous workforce participation increased from 9% in July 2007 to 22% in June 2011.<br />

Significantly, this has been achieved while meeting key performance measures for the Trust reported as<br />

follows.<br />

Table 16: MRM Community Benefits Trust Key Performance Measures, 2011<br />

Area Measures Status<br />

Governance Compliance obligations met for MRM investment <br />

Obligations for reporting met<br />

<br />

Obligations for consultation met<br />

<br />

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MRM Contributions<br />

Investment<br />

Percentage of available funds committed to grant<br />

programs >85%<br />

157% *<br />

Note: This is calculated as the grants approved during<br />

the financial year ($2.1 million) as a percentage of the<br />

annual contribution by MRM ($1.35 million). This result<br />

reflects the significant cash balance carried forward from<br />

FY 09/10 and the pipeline of projects which had been<br />

identified by the commencement of FY 10/11.<br />

Percentage of funding spent on administration costs<br />


MRM Contributions<br />

• offer good leveraging opportunities to build MRM brand awareness.<br />

Sponsorship applications are assessed on a range of criteria including:<br />

• Alignment with Xstrata’s Corporate <strong>Social</strong> Investment strategic objectives and Community Policy,<br />

whether the sponsorship enhances Xstrata’s reputation and whether sufficient funding is available.<br />

• The level to which the sponsorship activity benefits the local community in which MRM operates,<br />

whether it works alongside other sponsorships and offers value for money.<br />

• Whether there is an appropriate level of acknowledgement commensurate with sponsorship<br />

amount.<br />

MRM invested more than $930,000 in sponsorships and donations across community priorities between<br />

2006 and 2010.<br />

This has been distributed across the same six areas of focus as the Trust prioritises. However, the allocation<br />

to these focus areas has been more balanced with a higher skew to two areas:<br />

• Health: due to the sponsorship support of the second GP at the Borroloola Health Clinic, the high<br />

cost of the Borroloola Renal Unit and x-ray facilities<br />

• Art and culture: through MRM’s annual support for key community events such as the Borroloola<br />

Show, NAIDOC festivities and the Waralungku Arts Centre.<br />

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Community Goal Analysis<br />

4 Community Goal Analysis<br />

4.1 Community Goal<br />

As previously indicated in section 2.2.7 Needs and Values, there has been significant community<br />

development planning conducted in the Gulf Region in relation to the establishment and long-term planning<br />

for the Trust, the local government redistribution and formation of the Roper Gulf Shire Council, and the NT<br />

Government’s Growth Town initiatives.<br />

Substantial consultation and engagement has been conducted with community members to inform the<br />

strategic planning of these initiatives. This has unanimously found a desire for change, for a better future for<br />

new generations and for improved living standards and community infrastructure. The attitudes and values<br />

towards the future of the community and the desire for intervention have been consistently reported in two<br />

key local strategies described as follows. All have demonstrated that socio-economic development<br />

interventions and support are needed and wanted.<br />

4.1.1 MRM Community Benefits Trust Planning<br />

In October 2007, a detailed community development exercise was conducted in line with ICMM standards.<br />

This revealed a long-term vision for the community which now guides all Trust activities and decisions. That<br />

is to, by 2027 (the then life of mine), create a vibrant, healthy, thriving community.<br />

An associated community needs assessment then detailed the issues and challenges to achieving this vision as<br />

categorised by the focus areas of the Trust: enterprise and job creation, education, health, environment,<br />

social and community development, art and culture.<br />

The resulting 20-year community development plan is summarised in Appendix 2.<br />

On an annual basis, the Trust Project Officers conduct consultation to test whether this vision and the<br />

targeted outcomes remain relevant for the community. Each year, residents, community organisation<br />

representatives and government business officers have confirmed that this vision and its attending objectives<br />

remain reflective of the needs and interests of the community.<br />

4.1.2 Roper Gulf Shire Council<br />

Following the establishment of the Roper Gulf Shire Council in 2009/2010, the management embarked on a<br />

strategic planning exercise to assess the vision, mission and values of the Gulf regional community.<br />

The vision set under the 2010-2013 Strategic Plan reflected similar values to the Trust initiative and is: to be<br />

Sustainable, Viable and Vibrant.<br />

The mission is to work together as one towards a better future through effective use of all resources.<br />

In developing this plan, the values the Council strives to uphold are: honesty, equality, accountability, respect<br />

and trust.<br />

The strategic goals within this plan are also in line with the long term targets for the Trust. They are:<br />

1. Strengthen the quality of life in our Shire by working with the community and town residents and<br />

other organisations to identify and support priority social, cultural and recreational needs in order to<br />

build a stronger and healthier Shire.<br />

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Community Goal Analysis<br />

2. Move towards sustainability by building local economies, employing local people and making the<br />

Council economically sustainable.<br />

3. Care for our environment by promoting protection of the Shire’s natural environment for future<br />

generations, support appropriate enjoyment of lifestyles based on the natural environment and move<br />

towards becoming an environmentally sound organisation.<br />

4. Improve our infrastructure by strategically managing legacy infrastructure, plant and equipment to<br />

prolong its working life while concurrently lobbying for funding to repair, replace and increase<br />

infrastructure, fleet, plant and equipment to levels appropriate for our population and locality.<br />

5. Good governance by managing the Shire and its resources with professionalism, transparency and<br />

accountability and in the best interest of all the Shire’s people.<br />

4.2 Priorities and Objectives – MRM Community Benefits Trust Planning<br />

The priorities and objectives generated through the Trust consultation and planning are summarised below.<br />

Table 17: Gulf Region Community Priorities and Objectives<br />

Priorities<br />

Objectives<br />

Diversity the economic profile<br />

of the region in order to<br />

generate a wider range of<br />

enterprise and employment<br />

opportunities.<br />

• Unemployment rate: NT average<br />

• Weekly gross income: NT average<br />

• Greater diversity of employment in semi-skilled and skilled jobs<br />

• Development of new industries in tourism, accommodation,<br />

pastoral, infrastructure, aquaculture and cultural sectors<br />

• Well planned land releases and development to address housing and<br />

commercial land tenure needs<br />

• Improved infrastructure planning and provision<br />

Focus on the children and<br />

their education to set them up<br />

for greater future<br />

opportunities.<br />

• Literacy: NT average for the number of Grade 7s passing the<br />

reading test<br />

• Number of students graduating from Grade 10 and 12: NT average<br />

• School absenteeism: NT average<br />

• Introduce vocational education and training within local schools<br />

linked to economic development opportunities<br />

Promote social and community<br />

development to build a<br />

stronger sense of community<br />

and facilitate development<br />

opportunities.<br />

• Average cost of living: NT average<br />

• Overcrowding in local homes: less than NT average<br />

• Formal youth activities: wide variety of activities<br />

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Community Goal Analysis<br />

Priorities<br />

Objectives<br />

• Sense of community and town pride: High<br />

• Law - offences against the person per 1,000: NT average<br />

• Implement drug and alcohol management plan<br />

Promote healthier<br />

communities to give children a<br />

good start in life.<br />

• Access to affordable, healthy food: High<br />

• Drug and alcohol abuse: Low<br />

• Prevalence of chronic diseases: NT average<br />

• Improved nutrition programs for parents and children<br />

• Address high rates of teenage pregnancies<br />

Sustainably manage and<br />

protect the natural<br />

environment particularly lands<br />

of cultural significance<br />

• Maintaining widespread cattle grazing on large pastoral properties<br />

• Developing sustainable recreational fishing industry<br />

• Establishing sustainable eco-tourism businesses<br />

• Support for projects/programs that enhance the natural environment<br />

Support the education and<br />

preservation of local art and<br />

culture recognising the unique<br />

language, song lines and<br />

stories of the region<br />

• Establishing sustainable traditional hunting and gathering by<br />

language groups<br />

• Generational understanding of Indigenous culture and traditions:<br />

Well remembered and shared<br />

• Providing a communal space for educating young people on the<br />

culture of their families<br />

• Establishing a variety of sustainable culture-based businesses based<br />

on tourism<br />

4.3 Borroloola LIP<br />

The Draft Borroloola LIP was released in June 2011 and sets out the priorities of the Borroloola community,<br />

including targets, actions, success measures and a timeline for achieving identified priorities. The plan<br />

represents a detailed agreement between all levels of government and local people on how to make<br />

Borroloola a better place to live.<br />

The plan builds on a number of existing plans and strategies, including the Growing the Gulf Regional Plan<br />

2000 (Gulf Regional Planning Advisory Committee, 2000) and the <strong>McArthur</strong> <strong>River</strong> Mine Community Benefits<br />

Trust 2010/11 Annual Plan (MRM Community Benefits Trust, 2010). It has been further developed in<br />

consultation with the Borroloola Local Board of the Roper Gulf Shire and the MRM Community Benefits Trust<br />

Women’s Group. It is understood further meetings are planned with the senior representatives of each of<br />

the four clan groups, together with the Youth Voice Group. In late 2011, further work occurred to establish<br />

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Community Goal Analysis<br />

the Local Reference Group who will assist with the implementation of the Local Implementation Plan. MRM<br />

and MRM Community Benefits Trust representatives have been identified to participate in this group.<br />

4.4 Priorities and Objectives – NT Government Planning<br />

The Council of Australian Governments and Working Future have recognised that improving outcomes for<br />

Borroloola requires implementing a complex approach that sees effort directed across seven key areas of<br />

community life, or building blocks. Improvements in one area affect results in other areas, which are<br />

measured annually against Closing the Gap targets, as part of the LIP.<br />

Identified priorities and targets as identified within the Borroloola LIP are provided in Table 18. NT<br />

Government et al., 2011):<br />

Table 18: Priorities and targets as identified within the Borroloola LIP<br />

Building Blocks Achieving COAG Targets Priorities<br />

Early childhood<br />

Schooling<br />

Health<br />

For an equal start in life, Indigenous children need early<br />

learning, development and socialisation opportunities.<br />

Access to high-quality early childhood education and<br />

care services—including preschool, child care and<br />

family support services such as parenting programs—is<br />

critical. Facilities and infrastructure, a sustainable early<br />

childhood education and health workforce, learning<br />

frameworks and opportunities for parental<br />

engagement are also important and require attention.<br />

Action on maternal, antenatal and early childhood<br />

health will help close the gap in child mortality as well<br />

as in early childhood development.<br />

Education is the key to future opportunity. Schooling<br />

that responds to Indigenous education priorities<br />

requires attention to infrastructure, teacher and School<br />

leader supply and quality, curriculum, student literacy<br />

and numeracy achievement, opportunities for parental<br />

engagement, and school-community partnerships.<br />

Transition pathways into schooling and into work, and<br />

post-school education and training are also important.<br />

So are lifelong learning and the development of adult<br />

literacy and numeracy skills.<br />

Access to effective, comprehensive primary and<br />

preventative health care is essential to improving<br />

Indigenous Australians’ health and life expectancy and<br />

reducing excess mortality from chronic disease. All<br />

health services play an important role in providing<br />

Indigenous people with access to effective health care.<br />

These services need to be responsive to government<br />

and community health priorities and accountable for<br />

achieving them. Closing the Indigenous health gap<br />

requires intense efforts in preventing, managing and<br />

1. Strengthen support for<br />

families, women, men, youth<br />

and children.<br />

2. Children are born healthy<br />

and stay healthy.<br />

1. Increase educational<br />

opportunities.<br />

2. Provide options for young<br />

people who have been<br />

unable to succeed in the<br />

current education/training<br />

environment.<br />

3. Improve local and regional<br />

infrastructure.<br />

1. Strengthen support for<br />

families, women, men, youth<br />

and children.<br />

2. Reduce alcohol and<br />

marijuana abuse.<br />

3. Support and develop health<br />

care and related services.<br />

4. Increase leisure and<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 73


Community Goal Analysis<br />

Building Blocks Achieving COAG Targets Priorities<br />

Healthy homes<br />

Economic<br />

participation<br />

Safe<br />

communities<br />

treating chronic disease. Indigenous children and their<br />

parents need to use programs and services that<br />

promote healthy lifestyles.<br />

A healthy home is a fundamental precondition of a<br />

healthy population. Important contributors to the<br />

current unsatisfactory living conditions include<br />

inadequate water and sewerage systems, waste<br />

collection, electricity and housing infrastructure<br />

(including design, availability and maintenance).<br />

Children need to live in houses that are free from<br />

overcrowding and provide the infrastructure they need<br />

for good hygiene and study.<br />

Indigenous people and communities should be able to<br />

benefit from the mainstream economy. This includes<br />

real jobs, business opportunities, economic<br />

independence and wealth creation. Economic<br />

participation needs to extend to disadvantaged job<br />

seekers and those outside the labour market. Access<br />

to land and native title can be leveraged to secure<br />

practical benefits for Indigenous people. Economic<br />

participation also needs other financial assets, capacity<br />

building, employment and training programs, incentive<br />

structures, and infrastructure such as communications<br />

and transport. Through economic participation, adults<br />

can become good role models for their family and<br />

community. The design and delivery of welfare<br />

(transfer payments and services) needs to encourage<br />

active engagement, greater capability and positive<br />

social norms. Ensuring that communities have support<br />

to overcome barriers to engagement such as problem<br />

gambling is critical.<br />

Indigenous men, women and children need to be safe<br />

from violence, abuse and neglect. Meeting this need<br />

involves improving family and community safety<br />

through law and justice responses (including accessible<br />

and effective policing and an accessible justice system),<br />

victim support (including safe houses and counselling),<br />

child protection, and preventative measures.<br />

Addressing related problems such as alcohol and<br />

substance abuse is critical to improving community<br />

recreational opportunities.<br />

5. Support and develop health<br />

care and related services.<br />

* Priorities currently under<br />

development.<br />

1. Provide more<br />

accommodation across the<br />

region.<br />

2. Develop public transport<br />

services.<br />

3. Promote development of<br />

appropriate mining activity.<br />

4. Expand and diversify primary<br />

industries.<br />

5. Promote tourism in the<br />

region.<br />

6. Improve business support<br />

services.<br />

7. Improve employment and<br />

training opportunities.<br />

8. Improve local and regional<br />

infrastructure.<br />

9. Borroloola is well planned<br />

for future development and<br />

growth.<br />

1. Improve Community<br />

Harmony and safety.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 74


Community Goal Analysis<br />

Building Blocks Achieving COAG Targets Priorities<br />

safety as well as improving health.<br />

Governance and<br />

leadership<br />

Strong Indigenous leadership is needed to champion<br />

and demonstrate ownership of reform. Effective<br />

governance arrangements in communities and<br />

organisations, as well as strong engagement by<br />

governments at all levels, are essential for long-term<br />

sustainable results. Indigenous people need to engage<br />

in developing reforms that will affect them. They need<br />

greater opportunities to build capacity in governance<br />

and leadership in order to play a greater role in<br />

exercising their rights and responsibilities as citizens.<br />

1. Community leaders and<br />

elected council members<br />

have the skills to effectively<br />

govern.<br />

2. The culture and art of the<br />

Borroloola Region is retained<br />

and promoted.<br />

Source: NT Government et al., 2011<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 75


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

5 <strong>Social</strong> <strong>Impact</strong> Management Plan<br />

5.1 Project <strong>Impact</strong> and Opportunities <strong>Assessment</strong><br />

This section identifies and assesses the potential risks, benefits and material issues to the surrounding<br />

communities of the Project. The risk assessment process was undertaken using a framework developed<br />

around the AS/NZ Risk Management standards, whereby risk and opportunity are assessed as a function of<br />

the likelihood of an event occurring and the consequences of such an event. The results were then cross<br />

referenced against the Xstrata SD Framework to inform the SEP. The next section ranks the anticipated<br />

impacts and potential social benefits according to these measures to determine the anticipated impact<br />

significance.<br />

5.2 <strong>Impact</strong> Identification<br />

Potential impacts resulting from the Project were identified by considering the likely interaction between the<br />

development and the people and communities that may be affected by them. This process was undertaken<br />

for each phase of the Project – construction and operation.<br />

The impact identification process was further informed by the previous experiences of the community with<br />

MRM and concerns or issues raised by the community throughout the consultation process.<br />

In identifying the impacts, it is recognised that MRM has been operating in its current location since 1995.<br />

Over the 16 years since the mine opened, the community’s aspirations, values and enterprises have adapted<br />

to accommodate the presence of the mine. The biggest impact over this time was when the mine changed<br />

from underground to open pit following the Phase 2 expansion in 2005. The Phase 3 expansion will see a<br />

doubling of production from operations remaining within the existing mine bund. This will not require any<br />

additional land acquisition and is expected to have limited impact on community values. However, it will<br />

present additional opportunities for the community, particularly around training, education, wellbeing and<br />

community development. A key element of MRM’s ongoing engagement with the local community will be<br />

around developing strategies and approaches to maximise these benefits and provide sustainable outcomes<br />

for the community beyond the life of the mine.<br />

5.3 <strong>Impact</strong> <strong>Assessment</strong><br />

The assessment of potential impacts (both positive and negative) has sought to identify the likely phase<br />

(construction or operation) in which each possible impact will apply as well as the people that are likely to be<br />

affected. A number of criteria were established in order to support an objective assessment of potential<br />

impacts. These criteria included:<br />

• the likely duration of the impact and whether it is reversible or irreversible<br />

• the magnitude of the impact on the affected community<br />

• the ability of those affected by the impact to adapt and accommodate the change<br />

• existing strategies or programs that will help to manage the impact (mitigate or enhance).<br />

Having initially assessed potential impacts to determine if they are positive or negative, MRM’s approach is to<br />

develop mitigation/ management strategies to reduce, eliminate or offset significant negative impacts, and<br />

enhancement strategies to optimise potential community benefits arising from positive Project impacts.<br />

The impact assessment ranking is based on the framework provided in Table 19, <strong>Impact</strong> significance ranking<br />

framework. This framework also provides a visual summary of the anticipated Project impacts and<br />

opportunities as revealed through community consultation and the SIA analysis. Further information about<br />

these impacts can be found in the Summary <strong>Impact</strong> <strong>Assessment</strong> in Table 19, and subsequently detailed in the<br />

text below.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 76


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

5.4 <strong>Impact</strong> Management<br />

Management of a large number of the identified impacts will require coordinated efforts by MRM, the Roper<br />

Gulf Shire, NT Government, and the community. A number of strategies have been suggested to support this<br />

process. A specific focus has been placed on mitigating and enhancing impacts that are considered to be<br />

significant (i.e. ranked as medium or higher). MRM will also monitor other potential impacts to determine if<br />

there are any unanticipated effects as a result of the development.<br />

Initial mitigation, management and enhancement strategies have been identified by MRM and are detailed<br />

below. Please refer to Appendix 4, impact/benefit summary table, for more information.<br />

Table 19: Summary <strong>Impact</strong> <strong>Assessment</strong><br />

<strong>Impact</strong><br />

Phase<br />

Type of<br />

<strong>Impact</strong><br />

(Negativ<br />

e /<br />

Positive)<br />

Likelihood<br />

Consequence<br />

<strong>Impact</strong><br />

Si ifi<br />

Employment –<br />

Local employment<br />

Increased employment opportunities – local<br />

Con<br />

Ops<br />

Positive<br />

High High High<br />

Employment –<br />

Youth employment<br />

Youth Employment Opportunities – Local<br />

Con<br />

Ops<br />

Positive<br />

High High High<br />

Employment –<br />

<strong>Impact</strong>s of<br />

employment<br />

Increased local employment leads to greater<br />

use of alcohol and drugs<br />

Con<br />

Ops<br />

Negative Med High High<br />

Employment –<br />

<strong>Impact</strong>s of<br />

employment<br />

Increased instance of humbugging<br />

Con<br />

Ops<br />

Negative High High High<br />

Regional<br />

Development –<br />

Community Benefits<br />

Trust<br />

Extended mine life until 2036 – increased job<br />

stability and extension of Community<br />

Benefits Trust<br />

Ops Positive High High High<br />

Regional<br />

Development –<br />

Youth Opportunities<br />

Increased potential for youth services and<br />

facilities to be implemented in local area as a<br />

result of extended Community Benefits Trust<br />

life<br />

Con<br />

Ops<br />

Positive<br />

Med Med Med<br />

Regional<br />

Development –<br />

Traffic and roads<br />

Increased traffic may lead to accelerated<br />

degradation of roads and require greater<br />

maintenance<br />

Ops<br />

Negative Med Med Med<br />

Regional<br />

Development –<br />

Traffic and roads<br />

Increased traffic may increase the potential<br />

for more accidents<br />

Con<br />

Ops<br />

Negative<br />

Low High Med<br />

Regional<br />

Development –<br />

Increased transportation of lead concentrate,<br />

leads to increased risk of spills<br />

Ops Negative Low High Med<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 77


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

<strong>Impact</strong><br />

Phase<br />

Type of<br />

<strong>Impact</strong><br />

(Negativ<br />

e /<br />

Positive)<br />

Likelihood<br />

Consequence<br />

<strong>Impact</strong><br />

Si ifi<br />

Traffic and roads<br />

Regional<br />

Development –<br />

Accommodation<br />

and travel<br />

Increased employment of local people means<br />

they are no longer able or wish to stay in<br />

their home community<br />

Con<br />

Ops<br />

Negative Med High High<br />

Regional<br />

Development –<br />

Accessibility<br />

Increased flight schedule to MRM may lead<br />

to increased accessibility to and from the<br />

area for the community<br />

Positive<br />

Low Med Low<br />

Regional<br />

Development –<br />

economic<br />

contribution<br />

Opportunities for local and regional<br />

businesses to engage with the mine<br />

Con<br />

Ops<br />

Positive<br />

Med High High<br />

Environment and<br />

rehabilitation<br />

Increased frequency and scope of<br />

environmental monitoring<br />

Con<br />

Ops<br />

Positive<br />

Low Med Med<br />

Environment and<br />

rehabilitation<br />

Environment and<br />

rehabilitation<br />

Environment and<br />

rehabilitation<br />

Tailings storage<br />

facility<br />

Increased accessibility to monitoring results<br />

Increased opportunities for Traditional<br />

Owners / Indigenous leaders to be involved<br />

in the rehabilitation process<br />

Responsible mine closure rehabilitation<br />

works and planning<br />

Perception that expanded TSF will result in<br />

greater likelihood of seepage contaminating<br />

ground and surface water<br />

Ops Positive Low Med Med<br />

Ops Positive Med Med Med<br />

Ops Positive Med Med Med<br />

Ops Negative Low High Med<br />

Tailings storage<br />

facility<br />

Expansion of TSF may impact on visual<br />

amenity<br />

Con<br />

Ops<br />

Negative<br />

Low Med Low<br />

Overburden<br />

emplacement facility<br />

Perception that OEF run-off may be acidic<br />

and pollute water sources (ground and<br />

surface)<br />

Ops Negative Low Med Med<br />

Overburden<br />

emplacement facility<br />

Expansion of OEF may impact visual amenity<br />

Ops<br />

Negative Med Med Med<br />

Cultural heritage<br />

Disturbance of cultural heritage sites due to<br />

project activities during construction and<br />

operation<br />

Con<br />

Ops<br />

Negative<br />

Low Med Med<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 78


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

<strong>Impact</strong><br />

Phase<br />

Type of<br />

<strong>Impact</strong><br />

(Negativ<br />

e /<br />

Positive)<br />

Likelihood<br />

Consequence<br />

<strong>Impact</strong><br />

Si ifi<br />

Cultural heritage<br />

Increased involvement by Traditional Owners<br />

in cultural heritage management activities<br />

Con<br />

Ops<br />

Positive<br />

Med Med Med<br />

Bing Bong Increase in barge movement at Bing Bong –<br />

impacting people / cultural activities (eg.<br />

fishing)<br />

Bing Bong Increase in barge movement at Bing Bong –<br />

impacting marine life<br />

Ops Negative Low Low Low<br />

Ops Negative Low Med Med<br />

Project - General<br />

Human rights breaches – personnel and<br />

community<br />

Con<br />

Ops<br />

Negative<br />

Low High Med<br />

Project - General<br />

Increased mine production may lead to<br />

further resources to increase consultation /<br />

support / communication between MRM and<br />

community<br />

Con<br />

Ops<br />

Positive<br />

High High High<br />

5.4.1 Employment<br />

a. Local Employment — Increased Employment Opportunities - local<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: High<br />

Consultation revealed employment was the key area of interest for community members, with feedback<br />

indicating the Project was seen as an opportunity to increase local employment (and Indigenous employment)<br />

at MRM. This sentiment was supported by people who had family members working at the mine who<br />

expressed a sense of achievement and pride in their comments and responses, and were therefore keen to<br />

see this trend and experience continue with other members of their community.<br />

The proposed Project will require an increased operational workforce of approximately 40%. This represents<br />

a creation of approximately 110 additional permanent employees. Currently about 18.5% of the workforce is<br />

sourced from the local community, however there is potential for this to increase if the baseline skills and<br />

work readiness of local residents improve.<br />

Currently approximately 22% of all MRM employees are Indigenous, suggesting that Indigenous employment<br />

benefits both the local community (Borroloola and the Gulf region) as well as the NT more broadly.<br />

Therefore, in sustaining the existing Indigenous workforce participation rate, at least 23 jobs for Indigenous<br />

people will be created.<br />

The expansion is expected to increase the mine life by nine years until 2036, providing the local community<br />

with enhanced job security, as well as increased opportunity for mine jobs as baseline skills improve.<br />

Consultation revealed local and Indigenous employment is seen by many stakeholders as a key benefit of the<br />

Project and opportunities will be further explored by MRM.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 79


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

As well as providing employment to local residents (incorporating Indigenous locals), the Project has the<br />

potential to provide additional income to local property holders should they be employed at the mine,<br />

providing them with greater stability, particularly during times of business-cycle downturn. For example,<br />

because of the shift rosters on mines, pastoralists may be able to secure mine employment while still working<br />

on the property during their rostered break, or representatives from environmental organisations, such as the<br />

Sea Rangers, may be able to be engaged to assist with environmental monitoring work.<br />

Enhancement<br />

MRM will continue to support local skills development and training through its ongoing employment<br />

strategy, which includes the Indigenous Employment and Training Strategy, Pathways to Employment.<br />

Activities undertaken to date include:<br />

• a trainee program offering entry-level opportunities, providing training for jobs in mining, hospitality,<br />

environmental management and administration<br />

• ongoing career development tailored to individuals, aimed at helping retain Indigenous employees<br />

• support to the NT Government’s pathways program to provide effective learning pathways for<br />

remote and very remote students<br />

• provision of work experience, trainee and apprenticeship programs and support to VET programs.<br />

Consideration will also be given to developing community partnerships allowing more flexible work place<br />

arrangements in support of greater engagement of Indigenous personnel. These will be explored in<br />

consultation with the MRM CRG, Traditional Owners, Roper Gulf Shire Council (Borroloola) and ISA.<br />

While MRM will continue to base employment on skills and capacity, it is committed to sourcing a willing and<br />

able workforce locally. As a result of programs already in place, it is anticipated the pool of people<br />

considered to be ‘work ready’ will increase, thereby providing long-term community benefits. Consultation<br />

indicated that engagement with the local community is an important part of ensuring there is a high level of<br />

awareness about employment opportunities at MRM.<br />

“There needs to be more promotion of the type of jobs you can get when working on the mine to<br />

promote understanding and interest...”<br />

Taken from meeting with local agencies held on 21 July 2011.<br />

In response to this, MRM will review its communication processes to ensure advice about employment<br />

opportunities is provided in a timely manner, and that local people are provided with support to develop their<br />

skills and become better positioned to maximise employment opportunities. Organisations and local service<br />

providers such as Centrelink, ISA, MRM CRG, MAWA and the school will be targeted as key channels for<br />

sharing employment information with the community, with initial communication enhancements including:<br />

• poster displays advertising upcoming employment, traineeship and apprenticeship opportunities<br />

• presentations to Centrelink, ISA and the school to promote understanding of the employment<br />

opportunities at the mine and what the pre-requisites are<br />

• increased access to MRM staff to discuss existing and upcoming employment opportunities<br />

• use of the local radio station to promote employment opportunities.<br />

MRM’s Indigenous Employment Coordinator will play a key role in liaising with job agencies to enhance local<br />

knowledge about mine employment opportunities.<br />

In terms of encouraging local staff retention, proactive mentoring has been identified by the community and<br />

stakeholders as a critical element to achieving higher retention rates. MRM’s Human Resource Department<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 80


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

provides support to staff, with the recent employment of the MRM Indigenous Employment Coordinator to<br />

assist Indigenous employees with resolving issues. Staff retention programs will be regularly reviewed<br />

drawing on lessons learned from both MRM experience and international best practices. Support staff, such<br />

as the Indigenous Employment Coordinator will be able to assist personnel in understanding MRM employee<br />

support and grievance mechanisms. Such mechanisms will be clearly outlined during employee induction<br />

programs.<br />

b. Youth Employment — Increased Youth Employment Opportunities<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: High<br />

Currently there are limited employment opportunities for young people living in Borroloola and surrounding<br />

communities apart from those that exist at, or as a result of, the mine. Consultation revealed a key reason<br />

why stakeholders and community members support the Project is due to its potential to increase employment<br />

opportunities for young people. These opportunities exist both during construction and over the longer term<br />

throughout the operation phase. Consultation with a wide range of community members showed creation of<br />

job opportunities for local youth which are transferrable within the industry, was an expected benefit of the<br />

proposed Project.<br />

Enhancement<br />

The key element to enhancing this benefit is developing a suitable skills base and developing work readiness<br />

among the local youth population. This requires a focus on improving numeracy and literacy levels, providing<br />

basic workplace readiness and expanding workplace mentoring programs for young Indigenous employees.<br />

As mentioned in the SIA, MRM is currently involved in a number of DET initiatives, including the Strong Start,<br />

Bright Future: Borroloola School Pathways to Employment Project, a three-year program for better vocational<br />

education and training (VET) within the school system. The Program will receive a grant of $1 million over<br />

three years from the MRM Community Benefits Trust, which will contribute to a series of initiatives to be<br />

delivered in partnership between DET, Borroloola School and MRM. The program has been proven in other<br />

NT communities to help provide a pathway toward education and training from birth, through school, to<br />

employment, and involves initiatives such as a frequent attendance program, incentives for students and VET<br />

opportunities.<br />

Funding will also support apprenticeships each year and improvements to the quality of VET instruction. This<br />

program aims to increase school attendance to 90% of all eligible students, increasing the amount of time<br />

spent at school to 90% and above, and helping to equip students with skills necessary to sustain<br />

employment, whether at MRM or in an associated industry.<br />

This program will work within the current education system and students will be able to achieve<br />

matriculation through participation in this program.<br />

Initial discussions have also occurred as to expanding facilities and resources to provide opportunities outside<br />

of school hours that will support those young people and other community members to access further<br />

education opportunities locally. It has been acknowledged that this will be further developed following the<br />

initial school based initiative to ensure that the model is robust and is able to support the current identified<br />

needs within the school system.<br />

In addition, the Trust also will continue to support skills development initiatives for local youth. A process to<br />

support the ongoing monitoring, mentoring and review of the success of these programs will be developed<br />

in consultation with the community and stakeholders and documented in the SEP.<br />

This plan will document a range of mechanisms to support more proactive dissemination of information<br />

about the nature, timing and scope of youth employment and training opportunities associated with the<br />

Project, and ongoing life of mine. Mechanisms for doing this will be via the existing Strong Start, Bright<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 81


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

Future program, local school visits to the mine, work experience programs, trainee programs, mentoring<br />

feedback, cultural awareness training and other Trust-supported education programs.<br />

c. <strong>Impact</strong>s of Employment — Increased Local Employment Leads To Greater Use Of Alcohol and<br />

Drugs<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The increased workforce requirements associated with the Project provide an opportunity for more<br />

employment among the local community. While this is largely considered to be positive, consultation results<br />

indicate there is a level of concern among community members, particularly Indigenous elders and women,<br />

that higher levels of employment and income lead to increased drug and alcohol use in the community. It<br />

was acknowledged that this may not affect employees while working at the mine, however when they return<br />

to the community with their income, the pressure and temptation to become involved in drug and alcohol<br />

abuse is heightened.<br />

Mitigation<br />

MRM undertakes regular drug and alcohol testing of all personnel and has a zero tolerance policy concerning<br />

breaches. This will support effective management of drugs and alcohol in the workplace (i.e. on site).<br />

To address the concern at a community level (i.e. off site), MRM will continue to support community health<br />

initiatives through the Trust as well as sponsorships and donations. Such initiatives may include drug and<br />

alcohol education programs and substance abuse support services. Consideration will also be given to<br />

exploring other initiatives in consultation with the MRM CRG, local Indigenous representative groups, Roper<br />

Gulf Shire Council, police and community health services.<br />

To support the community-based work, MRM will also investigate incorporating more substantial drug and<br />

alcohol management education on site as part of induction and/or training initiatives to encourage behaviour<br />

that can be replicated when back in the community.<br />

d. <strong>Impact</strong>s of Employment – Increased Humbugging<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: High<br />

Humbugging is a term applied to various forms of begging – the term refers primarily to the practice of<br />

demanding money from relatives on a regular basis. Consultation revealed that humbugging is a common<br />

and serious issue faced by the employed Indigenous community in Borroloola, particularly those employees of<br />

MRM.<br />

While it was widely agreed the employment opportunities the Project would deliver to the community were a<br />

key benefit, the humbugging associated with the income received was an issue.<br />

Mitigation<br />

While humbugging is not directly related to the Phase 3 Development Project, it can be classified as an<br />

associated impact, and therefore, an impact which needs to be addressed and mitigated (as appropriate) by<br />

MRM.<br />

MRM will therefore explore ways of reducing the potential disincentives to gaining employment imposed by<br />

social problems (such as humbugging) on the growth of Indigenous employment at MRM. Strategies for<br />

overcoming these issues need to be reached in consultation with NT Government, however may include<br />

investigating new models for the payment of salaries (such as setting up two bank accounts for staff),<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

undertaking community education programs, and providing support to workers who are experiencing<br />

humbugging.<br />

5.4.2 Regional Development<br />

a. Community Benefits Trust — Extended Mine Life Until 2036 – Increased Job Stability and<br />

Extension Of MRM Community Benefits Trust<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: High<br />

The Project is expected to extend the mine life by nine years to 2036. This will prolong the mine’s benefits for<br />

the community including providing extended job security and employment opportunities. Additional training<br />

opportunities for youth and opportunities for local businesses to engage with the mine and deliver services<br />

are recognised by the community.<br />

Importantly, extending the life of the mine means the life of the Trust will also be extended, representing a<br />

further estimated $11.23 million in funding (subject to formal review), and bringing the total funding<br />

allocation over the life of the mine to approximately $43.3 million. The extension of the life of the Trust will<br />

be of particular benefit to the community of Borroloola, and was a positive benefit widely recognised by the<br />

community.<br />

Enhancement<br />

As previously indicated, the Trust agreement is currently scheduled for review in 2015. This review will<br />

consider the contribution levels made by the Trust to community development in Borroloola and the local<br />

region and will determine the level of ongoing annual financial commitment.<br />

During consultation, some stakeholders indicated uncertainty about:<br />

• the types of initiatives and projects the Trust could fund<br />

• the distinction between the mine and the Trust<br />

• how to correctly make grant applications<br />

• how funding was allocated.<br />

A Trust Project Officer visits Borroloola on a regular basis to provide assistance to individuals and groups<br />

regarding the above information. To enhance the value of this resource, the Project Officer’s visiting times<br />

and location will be promoted on a wider basis across the community. The success of this will be measured<br />

on the number, quality and types of grant applications made to the Trust, and monitoring will assist the Trust<br />

in identifying whether further resources need to be applied to ensure wide-spread awareness about the<br />

above points.<br />

b. Youth Opportunities — Increased Potential For Youth Services and Facilities To Be<br />

Implemented In Local Areas As A Result Of Extended Community Benefits Trust Life<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The possibility of increased youth opportunities linking with provision of more services, facilities and social<br />

infrastructure for youth through the Community Benefits Trust was raised across a range of stakeholders<br />

through consultation. The extended life of the Trust in line with an extended life of mine increases the<br />

potential for funding to be directed toward supporting community initiatives which will improve life for<br />

young people in the region.<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

Enhancement<br />

MRM has no direct control over allocation of grant funding, however, can feed information back to the Trust<br />

Board via the Trust Project Officer. MRM will provide consultation results to the Trust through this channel to<br />

be addressed through the Trust administration, promotion and management activities.<br />

A community hub, including indoor sports facilities, has already received in principle agreement from the<br />

Trust for a $1 million grant with a further $440,000 being contributed by the Australian Government.<br />

This proposal was originally initiated by the Roper Gulf Shire Council however there was extensive concern<br />

from the community in relation to the proposed site and the lack of consultation in relation to the needs of<br />

the community for this facility. Through the ongoing and annual consultation process of the Trusts Project<br />

Officer, further clarity has been obtained in relation to community expectations of the facility. A formal<br />

meeting has also been conducted through the NLC with the local traditional owners and other effected<br />

peoples (as required by NLC guidelines) to identify a suitable location for the facility. This meeting was able<br />

to agree on a location and NT Government representatives have been undertaking related investigations for<br />

this land to be made available.<br />

Once land tenure has been confirmed further development can occur in relation to the design, construction<br />

and ongoing management of the facility.<br />

c. Traffic and Roads — Increased Traffic May Lead To Accelerated Degradation Of Roads and<br />

Require Greater Maintenance<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The Project will result in increased heavy vehicle traffic movement, particularly between the mine site and the<br />

Bing Bong loading facility along the Carpentaria Highway and Old Bing Bong Road. Consultation identified<br />

concern with the condition of the existing road surface and this was confirmed by the traffic study. These<br />

deficiencies have been outlined in the traffic study and require investigation, regardless of whether the<br />

Project proceeds. As such, this assessment has been completed based on the assumption that the road<br />

improvements currently required will be made prior to commencement of the Project. If this does not<br />

happen, the potential ranking of the impact will increase.<br />

The findings of the traffic study indicated while there will be an increase in traffic volume as a result of the<br />

Project, the increase is expected to be negligible in relation to the traffic capacity of the existing road, with no<br />

additional mitigation required. However, without addressing the existing deficiencies in the road surface, the<br />

potential for further deterioration exists. These deficiencies have the potential to damage vehicle suspension,<br />

requiring increased vehicle maintenance and travel times. They could also pose a road safety hazard.<br />

Mitigation<br />

The Carpentaria Highway and the Old Bing Road are NT controlled roads and are therefore the responsibility<br />

of the NT Government. To support this process, MRM will work with the NT Government to highlight the<br />

importance of undertaking an upgrade to the existing road, whether the Project proceeds or not. If this road<br />

upgrade is undertaken in a timely manner, the impact of increased traffic as a result of the expansion is<br />

considered negligible.<br />

As a means of assisting and supporting the community, MRM has committed to continuing maintenance of<br />

Mule Creek Road, which was a topic raised several times in consultation.<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

d. Traffic and Roads — Increased Traffic May Increase The Potential For More Accidents<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

As traffic increases, the likelihood of an accident occurring also increases. While the likelihood of a serious<br />

accident occurring is considered to be low, the potential consequences of an accident between a road train<br />

carrying concentrate and a passenger vehicle are considered to be high and include fatalities. While the road<br />

connecting MRM with Bing Bong bypasses the Borroloola community, it is also the primary access route to a<br />

number of smaller Indigenous outstations and King Ash Bay.<br />

The traffic study identified the current road has a number of deficiencies from a safety perspective including:<br />

• water damage and pot holes representing increased safety risk for both large haul and private<br />

vehicles<br />

• uneven surfaces and reverse cambers on the road causing road trains to swing off the road or onto<br />

the opposite carriageway<br />

• narrow sections on the road resulting in increased potential for road trains to roll over, particularly if<br />

the vehicle leaves the sealed carriageway.<br />

The traffic study also identified that approximately 30 personnel travel to and from Borroloola to the site (a<br />

distance of 60 km) on a daily basis. Given this commute follows a 12-hour shift there is the potential for<br />

driver fatigue to result in increased accidents.<br />

As the road provides access to the King Ash Bay fishing region, which is popular with elderly retirees and<br />

other tourists, the risk is considered to be significant where a tourist, who is unfamiliar with the region and<br />

traffic conditions, uses the road.<br />

Using the assumption applied above that the road will be upgraded prior to any Project work commencing,<br />

the potential for an accident to occur will be reduced. Although the magnitude of a potential impact is high,<br />

the chances of such an accident happening are low because of the limited traffic utilising the road, meaning<br />

that the impact ranking is medium. If the road is not upgraded, the likelihood of a serious accident occurring<br />

may increase, increasing the significance ranking of the impact.<br />

Mitigation:<br />

It is difficult to reduce the potential magnitude of a serious accident on those involved and their families.<br />

However, it is possible to reduce the likelihood of occurrence of such accidents through a range of mitigation<br />

strategies that will be developed in consultation with the MRM Community Reference Group and community<br />

stakeholders. MRM will engage with road safety authorities and the community to develop and support road<br />

safety programs which may be implemented, such as pedestrian education programs, driver education<br />

programs and reduced speed limits in critical areas close to communities.<br />

MRM has also taken steps to provide a bus in / bus out service for personnel who live in Borroloola, which<br />

will work toward reducing potential impact of fatigue for drivers. Other fatigue management strategies will<br />

continue to be enforced and monitored as part of MRM operations.<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

e. Traffic and Roads — Increase In Transportation Of Lead Concentrate Leads To Increased Risk Of<br />

Spills<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The Project will result in the transportation of almost double the amount of lead concentrate between the<br />

mine site and Bing Bong. As with the transportation of any hazardous material, there is the potential for spills<br />

or accidents, resulting in injuries to the public or environmental impacts such as contamination of surface or<br />

ground water.<br />

While the community did not raise this as a specific issue requiring response in consultation, so as to ensure<br />

focus has been given to all possible risks, MRM has considered the potential for this issue to arise and has<br />

allocated mitigation techniques accordingly.<br />

MRM has in place a strict hazardous material handling policy that will be applied to the transportation of<br />

additional material to site. This policy includes a comprehensive emergency response and clean-up plan that<br />

will be activated in the event of any such accident. This policy has been tested, with a spill occurring in early<br />

2011 between the mine and Bing Bong which was cleaned up quickly and effectively according to<br />

procedures, and for which accolades were received from stakeholders in the community during the<br />

consultation process.<br />

Given the low population density along the transport corridor, the likelihood that an accident involving<br />

hazardous materials or a chemical spill could directly impact on communities is considered rare. Regardless,<br />

the potential magnitude is very high, meaning the impact ranking will also be very high.<br />

Mitigation<br />

Mitigation strategies include:<br />

• maintenance and on-going review of the existing lead concentrate handling and transportation<br />

policy<br />

• maintenance of the existing emergency response plan including longer term rehabilitation<br />

requirements<br />

• disclosure policy ensuring that government and community stakeholders are made immediately<br />

aware of any incidents involving hazardous material.<br />

f. Accommodation / Travel — Increased Employment Of Local People Means They Are No<br />

Longer Able Or Wish To Stay In Their Home Community<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: High<br />

The vast majority of housing in Borroloola is social housing owned either by community groups or the NT<br />

Government. Such housing is provided under the Remote Public Housing Framework which sees houses in<br />

Indigenous communities managed by Territory Housing under the NT’s public housing model. Public housing<br />

eligibility is determined based on gross weekly incomes, with the limit for a single person household set at<br />

$670 per week, increasing with each additional resident up to $1,452 per week. As such, Indigenous<br />

employees are generally no longer eligible for public housing once they receive a trainee wage or higher.<br />

As there is almost no private housing available in Borroloola, this means local people who gain employment<br />

in the mine have to or choose to find alternative accommodation or move away from the community and<br />

their families. Often this is exacerbated by social issues employees often face relating to ‘humbugging’<br />

(harassment or abuse for money) and an environment with a high level of drug / alcohol use.<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

Presently MRM is supporting these employees as requested by them by moving them to a FIFO roster, which<br />

allows them to relocate and rent houses in Darwin. This approach, however, means they are separated from<br />

their extended families and removed from their home community and culture. It also means, as one member<br />

of the community advised, ‘they spend their money in other places,’ taking much-needed economic<br />

contribution away from the local region.<br />

Mitigation<br />

MRM will continue to provide Indigenous workers with the option to transfer to FIFO and relocate to Darwin<br />

where they can secure rental accommodation. Opportunities to secure housing within Borroloola and<br />

surrounds will also be explored and consideration will be given to providing FIFO employees with scope to<br />

spend time in Borroloola around their shift rotations.<br />

MRM will also work with Territory Housing to highlight the limitations the social housing policy is posing on<br />

expanding Indigenous employment as lack of available housing serves as a disincentive to local Indigenous<br />

people to seek, or continue in mine employment. A key element of this engagement will be to identify<br />

alternative models for access to public housing for Indigenous mine employees in Borroloola in the absence<br />

of sufficient private housing being made available.<br />

Opportunities to encourage private developers to enter the community and develop private accommodation<br />

options will be explored in consultation with government, and community consultation will be undertaken to<br />

identify potential solutions to the housing issues. It is important to note that any private development will<br />

first require the government to negotiate long-term secure tenure of land and to provide services such as<br />

water, electricity and sewerage to this land. Input in this area will also be sought from Northern Land Council<br />

regarding land tenure issues in the Borroloola area.<br />

MRM will also work with the MRM Community Benefits Trust to identify proactive opportunities to work with<br />

the NT Government in increasing private housing.<br />

g. Accessibility — Increased Flight Schedule To MRM May Lead To Increased Accessibility To<br />

And From The Area For The Community<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: Low<br />

MRM’s airport is fully functional, with regular flights in and out to service the mine’s FIFO workforce. Flights<br />

are occasionally made available for members of the community, however due to the workforce level, flights<br />

are difficult to obtain.<br />

While the NT Government currently provides a charter flight to airlift elderly health patients for treatment at<br />

Darwin via Katherine, the community identified during consultation that the current situation relating to<br />

airlifting elderly patients via charter was not ideal, as the inability of the jet to take patients directly to<br />

Darwin, meaning they also required a 5-hour bus trip from Katherine, increased discomfort and risk of<br />

further health issues for patients.<br />

Outside this NT Government airlift service for patients, there are no other options for air travel for general<br />

members of the community in or out of the area.<br />

In consultation, a potential benefit of the Project identified by a high number of stakeholders in the area was<br />

the possibility of more flights being made available to the community.<br />

Unfortunately, due to the increased number of workers required for the Project and ongoing operations of<br />

the mine, the likelihood of a significant number of flights being made available on a regular basis is low,<br />

therefore the benefit impact is low.<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

Enhancement<br />

MRM currently makes a small number of seats available per week for non-personnel on flights in and out of<br />

the area each week / month. Community members need to book flights directly through the flight operator,<br />

Airnorth.<br />

MRM will work to make as many flights available for community members as possible, and will work with<br />

Airnorth and the community in considering ways to communicate the flight availability and schedule to<br />

people in the region.<br />

With regard to the flight issue raised regarding airlifting elderly patients by charter flight, MRM will engage<br />

with NT Health to develop an improved means and process of providing a comfortable means of travel direct<br />

to Darwin using Airnorth’s services.<br />

h. Economic contribution — Opportunities for local and regional businesses to engage with the<br />

mine<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: High<br />

MRM has a procurement policy which commits the mine to using local businesses where they are technically<br />

capable and commercially competitive. Through this policy, MRM has encouraged businesses to establish<br />

operations in the NT, creating employment and career opportunities for NT residents. The local procurement<br />

program has also enabled existing local businesses to expand their offerings to include services such as<br />

transport and freight logistics, labour hire and specialised maintenance services in a bid to maximise benefits<br />

from engagement with the mine.<br />

It is important to note that MRM does not procure from a business purely because they have a local<br />

presence. All suppliers are required to obtain accreditation from MRM before they can enter into a service<br />

contract. The accreditation process ensures that MRM is entering into agreements with businesses which:<br />

• enforce high health and safety standards among employees and contractors<br />

• consider the environment when manufacturing, packing or transporting their goods<br />

• respect human rights<br />

• carry an appropriate level of insurance<br />

• provide products or services that are fit for purpose.<br />

In 2010 the value of MRM’s local procurement program was $7 million to local Borroloola businesses and<br />

$60 million to local NT businesses (Xstrata Zinc Australia Sustainability Report, 2010).<br />

Enhancement<br />

The local procurement program will continue to underpin MRM operations throughout the proposed Project.<br />

A key element of the SEP moving forward will be to ensure that local businesses are aware of the company’s<br />

expectations and requirements for accreditation. Opportunities to work with business and industry groups to<br />

support local procurement will also be explored. This may include support for businesses to link together to<br />

develop their capacity and to provide more comprehensive supplies to MRM.<br />

MRM will continue to report the success and development of the local procurement program through the<br />

MRM CRG, relationships with MAWA and Mabunji Aboriginal Resource Association, Mungoorbada<br />

Aboriginal Corporation supplier meetings, the MRM website, annual reports and other community and media<br />

engagement tools.<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

5.4.3 Environment and Rehabilitation<br />

a. Frequency and Scope Of Environmental Monitoring — Increase Frequency and Scope Of<br />

Environmental Monitoring<br />

Type of <strong>Impact</strong>: Positive:<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

Consultation with stakeholders and community members revealed that should the proposed project<br />

continue, the frequency and scope of the current monitoring process needs to increase, specifically in relation<br />

to water testing at identified locations.<br />

MRM currently undertakes environmental monitoring which is reviewed by an independent environmental<br />

monitor (IEM) on an annual basis, with the key results available for community viewing on the IEM website.<br />

This area of interest is driven by community and stakeholder concerns that the increased production at the<br />

mine may result in environmental impacts occurring more quickly, so more frequent monitoring will allow for<br />

any changes in the environment to be established early and appropriate mitigation/management tools<br />

implemented.<br />

Enhancement<br />

In addition to continuing the current annual independent monitoring, MRM will investigate the potential to<br />

increase the frequency of monitoring at key locations, such as Surprise Creek.<br />

b. Accessibility to Monitoring Results — Improve Accessibility to Monitoring Results<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

MRM’s current process for communicating monitoring results relies on community members and key<br />

stakeholders referring to the MRM website or reading the factsheets distributed. It was highlighted through<br />

consultation that community members and stakeholders want greater access and transparency with these<br />

results.<br />

“We request more transparency with monitoring results.”<br />

Taken from MRM CRG held on 11th July 2011<br />

While community members acknowledge the monitoring information is released and communicated by<br />

MRM, they want more detailed information (i.e. not just the overall monitoring results) together with an<br />

opportunity to discuss these more detailed results with MRM representatives to develop a greater<br />

understanding of what they mean and what needs to be addressed.<br />

Enhancement<br />

MRM will consider providing the community and key stakeholders with increased access to and more detailed<br />

information on the monitoring results achieved. This could be achieved by expanding the amount of<br />

information that is included in written materials to provide more depth and context to the monitoring results,<br />

together with increased access to MRM environmental representatives to discuss the results at MRM’s office<br />

in Borroloola.<br />

It must be recognised that the monitoring results provided to MRM are of a technical nature and can<br />

predominantly only be understood and accurately interpreted by people qualified in the area of<br />

environmental science and management. Providing all of this technical information to the community may<br />

not be appropriate as it may be difficult to understand, thus promoting more confusion. The strategy for<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

MRM will be to achieve a balance of access to information – increase the depth and amount of information<br />

on the monitoring process and results achieved, while ensuring it does not overwhelm stakeholders and the<br />

community with unnecessary technical jargon.<br />

c. Involvement In Rehabilitation Works — Increase Community and Traditional Owner<br />

Involvement In Rehabilitation Works<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The local community has a strong connection with the country and there are potential benefits around<br />

involving the Indigenous community in the ongoing and post mining environmental management and<br />

rehabilitation of the area. This will both support continuation of cultural ties with the country, strengthen<br />

current and ongoing environmental management, as well as improving the relationship between MRM and<br />

the local community.<br />

“Are there any nursery opportunities for the future?”<br />

Taken from meeting with the Roper Gulf Shire Council (Borroloola) held on 18 April 2011.<br />

“The Sea Rangers could be involved in the patrols, looking at the river systems, looking after the country.<br />

Could be an ongoing thing – gives pride and joy looking after this.”<br />

Taken from meeting with Traditional Owner – Yanyuwa Group held on 29 July 2011.<br />

Enhancement<br />

MRM will provide the community with detailed information about its ongoing environmental monitoring and<br />

management programs, including water and soil monitoring, mine site rehabilitation and impact mitigation<br />

approaches. This will be done through communication channels such as:<br />

• MRM website<br />

• Written materials (including factsheets and Memorandum)<br />

• MRM CRG.<br />

MRM will explore opportunities to engage a Gurdanji ranger group to be actively involved in environmental<br />

management and care for country around the mine in conjunction with MRM environmental personnel.<br />

MRM will investigate the potential to support the Gurdanji proponents to prepare a funding submission to<br />

the Trust, to support the establishment and short-term sustainability of the ranger group.<br />

Consideration will also be given to establishing a formal environmental education program in conjunction<br />

with Borroloola School to engage students in the establishment and management of rehabilitation work or<br />

other MRM environmental initiatives, such as the proposed Glyde <strong>River</strong> Preservation Area. Students already<br />

have the opportunity to undertake a Certificate 1 Environmental Studies and could have the opportunity to<br />

participate in an Industry Placement program at MRM as part of the Strong Start, Bright Future initiative.<br />

As well as improving the community’s understanding of the environmental management of the region, this<br />

approach will provide a sustainable outcome for the area beyond the life of the mine, and will support the<br />

local Indigenous community to maintain their strong links with country.<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

d. Mine Closure — Responsible Mine Closure Rehabilitation Works and Planning<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The topic of mine closure was raised during consultation, specifically in relation to community members<br />

wanting to understand what responsibilities MRM had to rehabilitate the area after the closure of the mine.<br />

Discussions revealed some community members and stakeholders would like to see the area ultimately return<br />

to cattle country after the closure of the mine.<br />

The rehabilitation of the site has been addressed in the Mine Closure Plan in the 2005 EIS and it is important<br />

this information is discussed again with the community and key stakeholders so they understand the<br />

direction being taken in terms of rehabilitation responsibilities in the lead up to mine closure.<br />

Enhancement<br />

Reviewing the way MRM communicates with the community and key stakeholders was a key theme to come<br />

out of consultation. While it was generally agreed that MRM does proactively communicate with the<br />

community and stakeholders, there is a need to introduce increased communication in some areas,<br />

supported by more ‘face time’ at the MRM office in Borroloola.<br />

With this in mind, MRM will investigate avenues to communicate their rehabilitation plans with the<br />

community in preparation for mine closure and beyond, with a view to involving community members<br />

(particularly Traditional Owners) in the rehabilitation works as appropriate.<br />

This enhancement strategy will closely link with others outlined previously in the environment and<br />

rehabilitation section as it covers increased communication and information provision to the community,<br />

together with involvement as appropriate.<br />

5.4.4 Tailings Storage Facility<br />

a. Tailings Storage Facility — Perception That Expanded TSF Will Result In Greater Likelihood Of<br />

Seepage Contaminating Ground and Surface Water<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The Project requires expansion of the current Tailings Storage Facility (TSF). There was minimal perception<br />

among community members that the expanded TSF may bring with it greater risk of seepage into ground<br />

and surface water surrounding the TSF, however some felt more monitoring would be required.<br />

“When you do the mining, does anything go back into the river?”<br />

Taken from meeting with King Ash Bay community members held on 26 July 2011.<br />

“Will the expansion increase the number of tailings? If yes, there needs to be more testing done.”<br />

Taken from MRM CRG held on 11 July 2011.<br />

Previously, seepage has been found in Surprise Creek located adjacent to the now decommissioned Cell One<br />

of the TSF. Surprise Creek is a tributary of the <strong>McArthur</strong> <strong>River</strong> which is an important fishing area for local<br />

residents and tourists. Through a monitoring program, MRM has been able to confirm that while low levels<br />

of sulphate resulting from the seepage have been found in Surprise Creek, this contamination has sufficiently<br />

diluted by the time it has reached the <strong>McArthur</strong> <strong>River</strong> where testing indicates that water flows are clean.<br />

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<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

Mitigation<br />

Since 2006, MRM has invested more than $10 million to continuously improve the performance and<br />

management of the TSF. Cell One (the cell closest to Surprise Creek) of the TSF has now been<br />

decommissioned and is undergoing rehabilitation. This process is being used to inform the future seepage<br />

management and TSF development plans.<br />

The expanded TSF has been a significant area of study under the EIS (Refer to Appendix E1 – Tailings Storage<br />

Facility Management Plan).<br />

It was identified that the management process for the TSF and findings of the ongoing monitoring must be<br />

communicated to stakeholders in a transparent, effective way on a proactive and regular basis. MRM will<br />

endeavour to increase the number of site tours provided to the community each year, allowing them to see<br />

the TSF and surrounds for themselves. MRM will also identify proactive means of communicating results on a<br />

one-on-one basis to interested stakeholders.<br />

b. Tailings Storage Facility — Expansion of TSF May <strong>Impact</strong> on Visual Amenity<br />

Type of impact: Negative<br />

<strong>Impact</strong> significance ranking: Low<br />

While the community and stakeholders advised they are currently able to view the outer wall of the TSF from<br />

the Carpentaria Highway, there were no negative sentiments about this. Additionally, the likelihood of the<br />

TSF impacting visual amenity as a result of the proposed Project is minimal, as expansion works will occur<br />

behind the TSF and will not be visible from the road.<br />

Mitigation<br />

MRM will continue ongoing consultation with the community and stakeholders throughout construction and<br />

operations of the Project to monitor and address community views.<br />

5.4.5 Overburden Emplacement Facility<br />

a. Overburden Emplacement Facility — Perception that OEF Run-Off May Be Acidic and Pollute<br />

Water Sources (Ground and Surface)<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

While not directly raised as a concern or issue during consultation, there was a high level of interest in<br />

environmental management performance, together with waterway management. The OEF, being an integral<br />

part of mining operations, and being a large man-made land mass set to be expanded as a result of the<br />

Project, could foreseeably be perceived as a risk to water sources. The increased size of the OEF may result in<br />

increased risk that potentially-acid forming (PAF) materials will be exposed to rain and runoff, leading to<br />

contamination of ground and surface water, including the local river systems.<br />

Mitigation<br />

MRM will continue to use existing procedures, which have been proven successful to date, to minimise the<br />

potential for PAF contamination of runoff. These procedures include ensuring that each section of ore and<br />

the different types of rocks are collected separately by diggers and transferred to trucks. Trucks identify<br />

whether they are carrying PAF, non-acid forming (NAF) or ore and these classifications determine where the<br />

load is deposited. Only NAF materials are used in the external faces of the mine structures such as the TSF,<br />

mine levee walls and OEF to ensure that any runoff into the <strong>McArthur</strong> <strong>River</strong> is not contaminated by contact<br />

with PAF material. MRM has undertaken long-term studies into the material stored in the OEF and these<br />

findings were considered in the design of the OEF to ensure best environmental management.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 92


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

In addition to continuing these existing strategies to mitigate against PAF contamination, MRM will increase<br />

the level of information provided to the community about OEF management and MRM procedures. This<br />

material will be delivered in a format appropriate to the community to maximise understanding and alleviate<br />

community concerns. Such communication may include fact sheets, community meetings, regular updates<br />

and information sessions.<br />

Ongoing monitoring of surrounding water courses will continue to be undertaken to ensure there is no<br />

evidence of contamination and the findings of this program will be widely distributed among stakeholders.<br />

b. Overburden Emplacement Facility — Expansion of OEF May <strong>Impact</strong> Visual Amenity<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The expansion will see the OEF double in size, both in terms of additional area and height – increasing from<br />

40 m to 80 m, in line with the pre-approved height. The current OEF at 40 m high can be seen from the<br />

Carpentaria Highway as it passes by the mine site, and will be more noticeable from a greater distance once<br />

the size is increased. Community consultation has indicated there is a minor level of concern about the<br />

impact this will have on the visual amenity of the area.<br />

Mitigation<br />

‘The expectation is that it’ll be an eyesore, not necessarily a good thing for the area.’<br />

Taken from meeting with the Borroloola Health Clinic held on 28 July 2011.<br />

‘You can see (the OEF) a little now, but there’s nothing you can do about it. It’s a sight for sore eyes.’<br />

Taken from meeting with Traditional Owner - Yanyuwa Group held on 28 July 2011.<br />

Because of the importance of the OEF in managing the environmental impacts of overburden, there is limited<br />

capacity to reduce the size of the OEF required to support the mine expansion. Instead MRM will investigate<br />

a range of strategies for contributing to local environmental enhancement to offset the impact on visual<br />

amenity of the higher profile OEF. These strategies will include ongoing exploration of the potential to<br />

establish a voluntary conservation zone on the Glyde <strong>River</strong> as a biodiversity offset to the unavoidable impact<br />

of MRM’s open pit operations. Under this initiative MRM is proposing establishing the Glyde <strong>River</strong><br />

Preservation Zone, a 10,000 hectare area that will be protected from further development and restored to its<br />

former environmental integrity by preventing pastoral activities and seasonal fires. The preservation of the<br />

area will be funded and managed by MRM for the life of the mine. MRM will also undertake to promote the<br />

biodiversity and natural beauty of this remote area of the NT.<br />

MRM will also undertake extensive consultation to engage with the community on rehabilitation activities for<br />

the OEF, both throughout the life of the mine and at closure. This process will be undertaken through the<br />

MRM CRG and through formalised and ongoing engagement with Traditional Owners and other<br />

stakeholders.<br />

MRM will increase opportunities for the community to take part in mine site tours to view the OEF (and other<br />

parts of the mine) and see progress of rehabilitation.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 93


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

5.4.6 Cultural Heritage<br />

a. Cultural Heritage — Disturbance of Cultural Heritage Sites Due To Project Works During<br />

Construction Works and Operation.<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

The identification and protection of sacred sites or sites of cultural significance is very important to Traditional<br />

Owners, and the process of how MRM will identify and protect these sites throughout the EIS process and<br />

beyond was a key topic of discussion during consultation.<br />

Extensive studies, including archaeological and ethnographic surveys, have been undertaken to identify and<br />

protect culturally significant sites within MRM’s lease area. These studies have identified 17 sites of cultural<br />

significance that either have a direct link to dreamtime stories or are important to the history and culture of<br />

the local Aboriginal people.<br />

In terms of the Project, there have been Indigenous cultural heritage artefacts identified at the rear of the<br />

current accommodation camp. This area has been designated as the preferred place for the extension and<br />

construction of the new operational camp facilities required to support the expansion. Construction on this<br />

site may result in disturbances to the artefacts and the cultural heritage site, which has the potential to result<br />

in some level of anxiety among Indigenous owners and the artefact managers, who are ultimately deemed<br />

responsible for the site.<br />

In moving forward, it is critical MRM continue to identify and protect culturally significant sites.<br />

Mitigation<br />

MRM will maintain its commitment to cultural heritage management which is guided by Xstrata plc’s<br />

Business Principles and articulated in MRM’s Cultural Recognition Policy.<br />

A cultural heritage study has been undertaken to review the site and confirm the presence of artefacts in<br />

consultation with archaeologists and Gurdanji Traditional Owners. The study identified that while artefacts<br />

were present, they were not considered to be significant and therefore the recommended management<br />

strategy is to document and remove the artefacts as per a process agreed with the Traditional Owners.<br />

b. Cultural Heritage — Increased Involvement by Traditional Owners in Cultural Heritage<br />

Management Activities<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

Involvement in cultural heritage or caring for country was highlighted during consultation. Community<br />

members expressed their interest in being involved in cultural heritage management activities, and saw the<br />

Phase 3 Development Project as an opportunity to action this involvement.<br />

The opportunity for involvement was of significant importance to the elder women, for two key reasons:<br />

1. Connection: involvement will provide them with an opportunity to care for country, giving them a<br />

spiritual and physical connection to the land.<br />

2. Youth: involvement will provide young Indigenous people with the opportunity to develop and<br />

deepen their understanding of the significant role caring for country plays in their culture.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 94


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

Enhancement<br />

MRM recognises caring for country is very important to the Indigenous culture – both spiritually and<br />

physically – and will investigate additional ways for Traditional Owners to be involved in cultural heritage<br />

management processes.<br />

Again, this enhancement strategy is closely linked to increasing the involvement of Traditional Owners in<br />

appropriate MRM management strategies, for example, in areas such as environment and rehabilitation<br />

works. In particular, consideration will be given to an idea raised in consultation to allow Gurdanji Traditional<br />

Owners to undertake a ranger program. The establishment of a Gurdanji Ranger program has been discussed<br />

with the Trust’s Project Officer and work is continuing to identify potential experts and funding options to<br />

assist with the establishment of this group.<br />

MRM will also investigate how cultural heritage management programs and processes can be further<br />

communicated with the community to promote understanding and awareness. This could be done through<br />

the school, the MRM CRG, and other community-based information sessions which will involve people in the<br />

process via information sharing.<br />

5.4.7 Bing Bong<br />

a. Bing Bong — Increased Barge Movement at Bing Bong May Potentially <strong>Impact</strong> People / Cultural<br />

Activities (e.g. Fishing)<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Low<br />

The increase in ore production will result in a doubling of barge movements, taking the bulk concentrate<br />

from Bing Bong to a loading facility located 20km offshore. Currently there is one barge, the Aburri, which<br />

undertakes an average of 2.5 return trips per week from the Bing Bong loading facility to the offshore<br />

loading area. This area is a popular fishing area for local Indigenous people, particularly residents of the Sir<br />

Edward Pellew Islands. Barge movement can restrict the access of these people to certain areas around Bing<br />

Bong and along the barge route, and can pose some health and safety issues as most fishing is done using<br />

small vessels such as dinghies and canoes.<br />

The increase in barge movements will not require any upgrades or further dredging to the Bing Bong port<br />

facilities as the area currently operates below capacity.<br />

In consultation, while many stakeholders were interested in environmental management and results within<br />

the Bing Bong area, there were no concerns raised about proposed additional barge movements.<br />

Mitigation<br />

There have not been any significant impacts to the communities and their fishing activities identified to date,<br />

nor has this been raised as a potential issue throughout consultation. While the increase in barge<br />

movements is not expected to significantly change, it will be important to ensure that the community is made<br />

aware of barge schedules and routes. This will be undertaken through ongoing engagement with the<br />

community, the distribution of information as well as the provision of effective channels for community<br />

members to raise any concerns and highlight any emerging issues.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 95


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

a. Bing Bong — Increased Barge Movement at Bing Bong May Potentially <strong>Impact</strong> Marine Life<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

While the number of weekly trips made by the Aburri barge is expected to increase to 5, the channel and<br />

route will not change, and there is not expected to be a high impact on marine life, in line with<br />

environmental results to date. The community, however, showed interest in monitoring marine life such as<br />

turtles to ensure impacts on their health and habits are minimised.<br />

Mitigation<br />

‘Do you do any testing of them mangroves? Need more tests on the oysters.’<br />

Taken from Women’s Site Tour held on 10 August 2011.<br />

‘I reckon the mine should do heavy metal testing on turtles and look at the health of sea animals.’<br />

Taken from meeting with the Borroloola Clinic held on 28 July 2011<br />

There was a high level of interest shown by Indigenous care for country groups regarding becoming involved<br />

with monitoring activities in the Bing Bong area. MRM will work closely with these groups to investigate<br />

opportunities to become involved in annual monitoring programs and address any potential impacts on<br />

marine life, and will collaborate on agreements for ongoing involvement with environmental management in<br />

the area.<br />

5.4.8 Project - General<br />

a. Project - General — Human Rights Breaches – Personnel and Community<br />

Type of <strong>Impact</strong>: Negative<br />

<strong>Impact</strong> Significance Ranking: Medium<br />

While there are a number of mechanisms in place to minimise the potential for human rights breaches,<br />

including national legislation and MRM corporate policies and procedures, and while not raised in<br />

consultation as an issue, the potential for the infringement of human rights still exists. To assess this risk, the<br />

SIA has drawn upon the IFC’s documented list of 35 human rights to assess which could be subject to a<br />

potential breach as a result of the Project’s activities.<br />

It is important to note that those issues which are the responsibility of the State are beyond the Project’s<br />

control. However, there may be scope for MRM to act as a ‘champion’ for the community, engaging with<br />

government and other stakeholders to support improved human rights outcomes.<br />

Existing Mitigation and Management Strategies<br />

MRM is bound by a number of Australian Government laws designed to ensure the protection of<br />

fundamental human rights. Many of these laws have been designed to meet Australia’s obligations as a<br />

signatory to the United Nation’s Universal Declaration of Human Rights. It is however important to note, that<br />

international declarations are not legally binding, but rather carry a moral weight of obligation because they<br />

are adopted by the international community.<br />

MRM has a number of human resource policies and procedures in place that ensure compliance with both<br />

Australian Government legislative requirements and international best practices. The protection of employee<br />

and host community human rights are ensured through these policies and procedures. As such, no additional<br />

mitigation is required.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 96


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

b. Project - General — Increased Mine Production May Lead To Further Resources To Increase<br />

Consultation / Support / Communication between MRM and Community<br />

Type of <strong>Impact</strong>: Positive<br />

<strong>Impact</strong> Significance Ranking: High<br />

Consultation efforts undertaken during this period were well-received by the community, with many viewing<br />

it as a ‘new era’ in involving the community and people in the region at a high level in the mine’s decisionmaking<br />

process.<br />

“Community engagement with us locals at Borroloola is important for MRM, and it would be good to have<br />

a full-time local MRM representative in the Borroloola MRM office to assist providing information...”<br />

Taken from meeting with the Savannah Way Motel held on 19 July 2011.<br />

“It is good Ettienne is talking with us now. Jane [Trust Project Officer] also comes around and talks with<br />

us.”<br />

Taken from meeting with Traditional Owner – Garrawa Group held on 18 August 2011.<br />

There has consistently been an MRM community relations representative employed at the mine, spending an<br />

average of 1 day per week working out of the Borroloola-based MRM office. Many of those consulted<br />

identified they would like to see an increased ‘face time’ presence from MRM located in the town of<br />

Borroloola to provide information about mine activities and employment.<br />

The proposed Project may lead to an increased level of resources available to improve the level of face-to-face<br />

consultation with the community. This would have the added benefit of tailoring consultation and<br />

communication to increase suitability for the audience (i.e. low levels of numeracy / literacy in the community<br />

means fact sheets and the newsletter may not be well-read locally, however the opportunity to provide<br />

information and discuss potential issues face to face would improve communication and consultation results).<br />

Enhancement<br />

Consideration will be given to ways of improving communication and consultation with the community to<br />

ensure information is provided in a way that is best-suited to the audience, including identifying whether<br />

additional community relations resources can be made available.<br />

An increase in site tours, public meetings and attendance at community group / NGO meetings will also be<br />

considered, with a calendar developed to ensure MRM is represented at key group meetings.<br />

The SEP provides a full overview of communication strategies moving forward.<br />

5.4.9 Cumulative <strong>Impact</strong>s<br />

There are h a number of significant resource projects at various stages of development across the NT. The NT<br />

Department of Resources – Minerals and Energy website lists the NT’s major producing mines (and the region<br />

in which they are located) as:<br />

• Alcan Gove Mine (Gove Peninsula in East Arnhem)<br />

• Bootu Creek Manganese Project (approximately 125 km north of Tennant Creek in Barkly)<br />

• Frances Creek Mine (approximately 180 km south of Darwin in Rest of Darwin statistical region)<br />

• Gemco Mine (Groote Eylandt in East Arnhem)<br />

• Ranger Mine (Jabiru, 260 km east of Darwin in Rest of Darwin statistical area)<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 97


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

• The Granites Gold Mine / Tanami Operations (560 km north west of Alice Springs in the Central<br />

NT/Alice Springs region)<br />

• Western Desert Resources Roper Bar Iron Ore Project (approximately 160km north west of Borroloola<br />

in the Gulf SLA).<br />

There are also a number of new projects, or expansions to existing projects proposed across the NT. These<br />

projects are details in Table 20 below.<br />

Table 20: Recent, Pending and Planned Resource Projects<br />

Project Location Product Development Stage *<br />

Gemco Refirb Groote Eylandt Manganese Plant Upgrade Recent<br />

Brocks Creek Pine Creek Gold Reopen Mine Recent<br />

Howley Pine Creek Gold Reopen Mine Recent<br />

Union Reefs Pine Creek Gold Reopen Mine Recent<br />

Bootu Creek Tennant Creek Manganese Secondary Plant Recent<br />

Tiwi Islands Tiwi Islands Zircon Reopen Mine Recent<br />

Princess Louise Pine Creek Gold New Mine Recent<br />

North Point Pine Creek Gold New Mine Recent<br />

Spinifex Bore Alice Springs Garnet Sands New Mine Pending<br />

SILL80 Roper <strong>River</strong> Fe, Ti, V New Mine Pending<br />

Ranger Heap Leach Jabiru Uranium Expansion Pending<br />

Browns Oxide Batchelor Cu, Co & Ni New Plant Pending<br />

Area 55 Batchelor Cu, Co & Ni Satellite Pit Pending<br />

Lethbridge Sth Tiwi Islands Zircon New deposit Pending<br />

Wonarah Tennant Creek Phosphate New mine Pending<br />

Redbank Gulf Copper New pits & plant Pending<br />

Nolans Arunta REO, P, U New mine Potential<br />

Browns Sulphide Batchelor Cu, Co, Ni, Pb, Zn New mine Potential<br />

Cosmo Deeps Pine Creek Gold Underground Potential<br />

Bigrlyi Ngalia Basin U, V New mine Potential<br />

Ranger 3 Deeps Jabiru Uranium Underground Potential<br />

Merlin Gulf Diamonds Reopen mine Potential<br />

Callie Deeps Tanami Gold Expansion Potential<br />

Roper Iron Ore Roper <strong>River</strong> Iron Ore New mine Potential<br />

Tanami Central Tanami Gold Reopen mine Potential<br />

Moyhil Alice Springs Mo, W Reopen mine Potential<br />

Roper Bar Roper <strong>River</strong> Iron Ore New mine Potential<br />

Mt Todd Gold Project Katherine Gold Reopen mine Potential<br />

Rover Tennant Creek Gold, Cu New Mine Potential<br />

* Recent (approved in past 24 months), Pending (next 12 months), Potential (next 12-36 months)<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 98


<strong>Social</strong> <strong>Impact</strong> Management Plan<br />

Source: Ore-Struck <strong>Mining</strong> Developments NT (NT Government 2010)<br />

In addition, new projects by Western Desert, Armour Energy and Redbank Copper within the Gulf region<br />

have the potential to generate social impacts for the same community associated with the Project.<br />

In addition to the above mining projects, oil and gas development is progressing in the NT. In particular, the<br />

proposed INPEX Browse LNG Project, which intends to construct an LNG processing plant in Darwin, piping<br />

the gas from the Browse Basin off the North West Coast of Australia, will provide significant income and<br />

employment to the NT.<br />

The primary benefits of the Project relates to regional economic improvements, government revenue,<br />

employment opportunities and housing.<br />

The 2008-09 financial value of mining to the NT was $4,325 million, contributing 26.5% of the NT’s Gross<br />

State Product (GSP). In addition to this, there are a number of recently approved, pending and potential<br />

projects which may develop over the next 12-36 months. With these further developments and increased<br />

exploration activities, the resource extraction industry is considered critical to the future growth of the NT. In<br />

addition to economic benefits, resource projects have the potential to bring social development benefits to<br />

the people of the NT, particularly in remote and regional areas through royalty payments, employment and<br />

infrastructure development resulting in greater access to social services. The potential revenue the resource<br />

sector represents to the NT Government also means greater capacity to provide services and develop<br />

infrastructure in communities.<br />

New mining developments can increase sustainability of employment in the resource sector. For example, a<br />

skilled mine workforce in Borroloola may be able to convert to FIFO and service other developments across<br />

the region.<br />

A potential negative impact emerging from the development is the imposition of increased demand on<br />

housing and accommodation. Darwin, the base for many of the region’s FIFO operations, already has a<br />

shortage of accommodation resulting in high rental and housing prices. The growth in employment<br />

opportunities will compound this, unless employees are engaged from outside the area or housing<br />

development is accelerated. As with other communities across the NT, housing development in Darwin is<br />

constrained by limited availability of construction workers and land tenure issues which limit potential<br />

expansion of the city into areas of Aboriginal Freehold Land.<br />

To address this, MRM will participate in any collaborative committees established by the NT Government to<br />

assess housing requirements for the resource sector. Consideration will also be given to supporting a limited<br />

number of FIFO workers to travel from outside of the NT to limit the impact on an already constrained<br />

housing market in Darwin. Potential industry skills shortages need to be acknowledged as a potential impact<br />

due to the growth of resources projects in the NT. To address this, MRM will continue its commitment to<br />

traineeships and apprenticeships to develop key skills. It is noted that the Century Mine in the lower Gulf<br />

area of Queensland is scheduled to close in 2015. Large numbers of Aboriginal people from the communities<br />

of Doomadgee and Mornington Island have been trained at Century, and these communities could be a<br />

source of trained workers in relatively close proximity to Borroloola.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 99


References<br />

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Northern Territory Government 2011, Construction Snapshot, Northern Territory Government, viewed 25 July<br />

2011, .<br />

Northern Territory Government 2011, Environmental <strong>Impact</strong>s <strong>Assessment</strong> Register, Northern Territory<br />

Government, viewed 25 August 2011, .<br />

Northern Territory Government 2011, Inquiry into the Protection of Aboriginal Children from Sexual Abuse,<br />

Northern Territory Government, Darwin, NT, viewed 10 August 2011, .<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 101


References<br />

Northern Territory Government 2011, NT Integrated Regional Transport Strategy – Transport in our regions,<br />

Northern Territory Government, Darwin, NT, viewed 10 August 2011, .<br />

Northern Territory Government Department of Housing, Local Government and Regional Services 2011,<br />

Outstations and homelands, Northern Territory Government Department of Housing, Darwin, NT, viewed 10<br />

August 2011, .<br />

Northern Territory Government Department of Housing, Local Government and Regional Services 2011,<br />

National Partnership Agreement on Remote Indigenous Housing, Northern Territory Government Department<br />

of Housing, Darwin, NT, viewed 10 August 2011, .<br />

Northern Territory Government Department of Resources 2010, <strong>Mining</strong> Developments in the Northern<br />

Territory, Northern Territory Government, Darwin, NT, viewed 25 August 2011,<br />

.<br />

Northern Territory Government, Roper Gulf Shire Council, Australian Government 2011, Northern Territory<br />

Growth Towns initiative draft Borroloola Local Implementation Plan, draft plan, Northern Territory<br />

Government Department of Housing, Local Government and Regional Services, Darwin, NT, viewed 4 August<br />

2011, .<br />

Roberts, Tony 2005, Frontier Justice: a history of the Gulf country to 1900, University of Queensland Press, St<br />

Lucia, QLD.<br />

Roper Gulf Shire Council 2010, Roper Gulf Shire Council Strategic Plan 2010-13, Roper Gulf Shire Council,<br />

Katherine, NT, viewed 28 January 2011, .<br />

Roper Gulf Shire Council 2011, Borroloola, Roper Gulf Shire Council, Katherine, NT, viewed 10 August 2011,<br />

.<br />

The National Human Rights Consultation 2010, About Human Rights in Australia, Australian Government,<br />

Barton, ACT, viewed 15 August 2011, .<br />

The Sydney Morning Herald 2004, Borroloola, The Sydney Morning Herald, Pyrmont, NSW, viewed 10 August<br />

2011, .<br />

Tourism NT 2011, Advance directional sign on the Stuart Highway, as NH87 changes to NH1 at Daly Waters,<br />

photo, Paul Rands, viewed 15 August 2011, .<br />

United Nations 2011, The Foundation of International Human Rights Law, United Nations, New York, USA,<br />

viewed 11 August 2011, .<br />

Xstrata Zinc 2010, Standard 12 – Guidelines for Stakeholder Engagement, Madrid, Spain.<br />

Yates, Judith & Gabrielle, Michelle 2006, ‘Housing affordability in Australia’, Australian Housing and Urban<br />

Research Institute, Research Paper 3, 2006, p.14.<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> 102


Appendix 1<br />

Appendix 1 — MRM Phase 3 Development Project, Community Consultation<br />

Report


<strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

Phase 3 Development Project<br />

SIA Consultation Report<br />

SEPTEMBER 2011


Contents<br />

Contents ....................................................................................................................................................... 2<br />

Tables ........................................................................................................................................................... 3<br />

Figures .......................................................................................................................................................... 3<br />

Appendices .................................................................................................................................................. 3<br />

Executive summary ..................................................................................................................................... 4<br />

Methodology .................................................................................................................................................. 4<br />

Key findings ................................................................................................................................................... 5<br />

Letter from the General Manager ............................................................................................................... 8<br />

Introduction .................................................................................................................................................. 9<br />

Consultation guidelines and principles applied .................................................................................... 10<br />

Xstrata Zinc Worldwide Guidelines for Stakeholder Engagement .............................................................. 11<br />

Industry best practice approach .................................................................................................................. 11<br />

Consultation team principles ....................................................................................................................... 12<br />

Our approach ............................................................................................................................................. 13<br />

General operational consultation and communication activities ................................................................. 13<br />

Methodology .............................................................................................................................................. 14<br />

Stakeholder identification and analysis ....................................................................................................... 14<br />

Goal ............................................................................................................................................................. 16<br />

Objectives .................................................................................................................................................... 16<br />

Location of consultation ............................................................................................................................... 16<br />

Consultation timeframe ............................................................................................................................... 16<br />

Communication tools and activities ............................................................................................................. 18<br />

Special considerations ................................................................................................................................ 19<br />

Constraints to consultation .......................................................................................................................... 20<br />

Consolidation of results ............................................................................................................................... 21<br />

Consultation outcomes ............................................................................................................................ 22<br />

Community and stakeholder participation ................................................................................................... 22<br />

Summary - areas of interest identified during consultation ......................................................................... 23<br />

Areas of interest – detailed analysis ........................................................................................................... 27<br />

Appendix 1: Consultation plan ................................................................................................................ 47<br />

Appendix 2: IAP2 Core Values ................................................................................................................. 48<br />

Appendix 3: IAP2 Spectrum ..................................................................................................................... 49<br />

Appendix 4: Communication tools .......................................................................................................... 50<br />

Appendix 5: Stakeholder Analysis .......................................................................................................... 51


Tables<br />

Table 1: Stages of consultation ................................................................................................................. 4<br />

Table 2: Stakeholder engagement objectives .......................................................................................... 7<br />

Table 3: Consultation team principles .................................................................................................... 12<br />

Table 4: Milestones for consultation ....................................................................................................... 16<br />

Table 5: Consultation program ................................................................................................................ 16<br />

Table 6: Communication tools and activities ......................................................................................... 18<br />

Table 7: Community and stakeholder participation............................................................................... 22<br />

Table 8: Areas of interest raised by stakeholder groups ...................................................................... 24<br />

Figures<br />

Figure 1: MCA Power vs Interest table .................................................................................................... 14<br />

Figure 2: Stakeholder classifications ...................................................................................................... 15<br />

Figure 3: Areas of interest ........................................................................................................................ 25<br />

Appendices<br />

Appendix 1: Consultation Plan<br />

Appendix 2: IAP2 Core Values<br />

Appendix 3: IAP2 Spectrum<br />

Appendix 4: Communication tools<br />

Appendix 5: Stakeholder analysis<br />

© Rowland 2012 Page 3


Executive summary<br />

Almost 300 people have been reached through 130 points of contact in a comprehensive consultation<br />

program conducted as an input to the <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> for the <strong>McArthur</strong> <strong>River</strong> Mine (MRM)<br />

Phase 3 Development Project (Project).<br />

The consultation found genuine interest in and support for the Project and support for the methodology<br />

undertaken to equitably involve a large number of stakeholders representing a diverse range of local,<br />

regional and cultural interests.<br />

This report provides a detailed overview of results collected during consultation and summarises all areas<br />

of interest to stakeholders based on their perceived potential positive or negative impacts or opportunities<br />

as well as the threats or barriers to their success.<br />

Consultation was undertaken in accordance with requirements and objectives stated in the Northern<br />

Territory (NT) Government’s Department of Natural Resources, Environment, the Arts and Sport<br />

(NRETAS) Draft EIS Guidelines released on 23 July 2011 and complies with the final guidelines released<br />

in late August 2011.<br />

The purpose of consultation was to provide information to regulatory agencies, to inform the public of the<br />

scope, impacts and mitigation measures of the Project, and to facilitate genuine feedback from<br />

communities and stakeholders potentially impacted or benefited by the Project.<br />

The goal of the community and stakeholder consultation conducted during this period was to share<br />

information in an open, equitable, all-inclusive and comprehensive way and to encourage community<br />

feedback and input into the process.<br />

Methodology<br />

Three stages of consultation were conducted.<br />

Table 1: Stages of consultation<br />

Milestone<br />

Stage 1 Inform – community and stakeholders informed about proposed project and<br />

upcoming EIS process<br />

Stage 2 Consult – community and stakeholders consulted about proposed project<br />

through EIS drafting process<br />

Stage 3 Involve and collaborate – community and stakeholders provided feedback and<br />

opportunity to become involved in mitigation steps moving forward<br />

Commencement date<br />

March 2011<br />

July 2011<br />

September 2011<br />

Stage 3 (Involve and collaborate) commenced in September 2011 and is continuing, with this report<br />

capturing all consultation up to and including 14 September 2011. An overview of consultation activities<br />

undertaken through these stages is provided below:<br />

● A total of 293 individuals were consulted on a one-to-one basis, with a number consulted more than<br />

once throughout the process.<br />

© Rowland 2012 Page 4


● The majority of consultation took place via private meetings, set up via outgoing phone calls, indicating<br />

consultation was individualised, took into account cultural requirements and allowed for privacy.<br />

● Around 56 people attended site tours of the mine site, which took into consideration a preference held<br />

by many Traditional Owners to be provided an opportunity to view the site first-hand.<br />

Key findings<br />

There is a clear and determined sense of empowerment in the community – that they can drive and play<br />

a key role in their future and the future of their town. This attitude contributed to the success of this<br />

consultation program in engaging with a large number of stakeholders and community members as they<br />

wanted to be part of the consultation process. Their feedback reflected a future-focussed town looking to<br />

capitalise on opportunities.<br />

Consultation involved an intensive period of one-on-one and focus group-style sessions with community<br />

and stakeholders to gain an understanding of their thoughts and feelings towards the proposed project.<br />

These meetings were supported by reference tools including maps, diagrams and factsheets to facilitate<br />

discussion which was oriented around a line of questioning designed to comply with the requirements of<br />

<strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong>s and the specific Project Terms of Reference.<br />

Following is a summary of the outcomes of discussions on the key topics tested through consultation and<br />

in order of priority as determined by the frequency of comments received.<br />

- Job Opportunities: Employment and associated matters was the most frequently discussed<br />

area of focus of interest to all stakeholders. There was strong support for the proposed Project<br />

based on its potential to provide increased local employment opportunities which delivered<br />

benefits for the worker as well as the wider community. Opportunities for youth employment and<br />

the chance to provide the next generation with a more rewarding future was particularly raised.<br />

- Community Benefits: There is clear support in the community for the MRM Community Benefits<br />

Trust and the benefits it provides in the community, particularly through programs targeting youth.<br />

Community members also expressed curiosity about the decision making process, the types of<br />

programs the Trust will support and the level of support available through the Project Officer,<br />

demonstrating an interest in greater communication and participation. The most consistent<br />

question raised however, was whether the amount invested in the Trust annually by MRM would<br />

increase and the life of the Trust extended in line with the Project.<br />

- Traffic: There were no concerns about the increase in traffic on the highway. Stakeholders were<br />

more concerned about the current state of maintenance of roads and the influence on road<br />

safety.<br />

- Rehabilitation: There was a high level of interest expressed by the Gurdanji community about<br />

being involved in the rehabilitation of the rivers and site.<br />

- Bing Bong Loading Facility: There was no concern raised regarding the increase in ship<br />

movements in the Gulf of Carpentaria and loading via the Aburri barge at sea, only interest in<br />

environmental monitoring along the Bing Bong coast and nearby Sir Edward Pellew Islands.<br />

- Economic Contribution: The potential for increased requirements of goods and services from<br />

suppliers as a result of the Project was recognised positively by the stakeholders consulted.<br />

- Tailings Storage Facility: There was a high level of satisfaction with how the Tailings Storage<br />

Facility (TSF) performed in the last wet season although there is a level of concern about the<br />

© Rowland 2012 Page 5


TSF, its design, impact on Surprise Creek and its function. However this topic ranked low in the<br />

priorities reflected by the frequency with which stakeholders were keen to discuss them.<br />

- Accommodation and Travel: There was recognition that housing accommodation for workers,<br />

humbugging, drugs and alcohol were key factors in the success of either retaining employees in<br />

the community and retaining local jobs. Significant feedback was also raised regarding the<br />

difficulties created by patients seeking more advanced levels of medical care than is available<br />

within Borroloola and the inhibitors to long distance travel to obtain it,<br />

- Environmental Monitoring: There was a desire for greater frequency, scope and transparency<br />

of information on environmental monitoring results at the mine and Bing Bong loading facility.<br />

- Overburden Emplacement Facility: There were no concerns about the proposed increase in<br />

height of the overburden emplacement facility, only interest in how it would be ultimately<br />

rehabilitated at completion.<br />

- Cultural Heritage Management: The work MRM has done to protect cultural heritage<br />

management to date was acknowledged. Questions were raised around the potential impact of<br />

the Project on sites of cultural significance, particularly Barramundi Dreaming. There was also a<br />

lot of interest in conducting caring for country initiatives on the MRM site by Traditional Owners.<br />

Figure: Frequency of topics of focus for consulted stakeholders (% of times raised in consultation<br />

meetings)<br />

Compensation / royalties<br />

Procurement<br />

1%<br />

Design Construction 1%<br />

Loading / shipping<br />

2%<br />

1%<br />

2%<br />

Dust / Air quality<br />

3%<br />

Overburden Emplacement<br />

Facility<br />

4%<br />

Flora<br />

2%<br />

Cultural heritage<br />

3%<br />

Water management<br />

4%<br />

Monitoring / surveys<br />

4%<br />

Consultation<br />

1%<br />

Employment<br />

11%<br />

MRM Community<br />

Benefits Trust<br />

10%<br />

Traffic and roads<br />

8%<br />

Fauna<br />

1%<br />

Accommodation and travel<br />

4%<br />

Tailings Storage Facility<br />

5%<br />

Economic contribution<br />

6%<br />

Bing<br />

Bong<br />

6%<br />

Rehabilitation<br />

6%<br />

Youth<br />

opportunities<br />

7%<br />

General<br />

8%<br />

© Rowland 2012 Page 6


Consultation was conducted by MRM General Manager, Ettienne Moller supported by Northern Territory<br />

based consultant and Indigenous woman, Vicky Nangala. Their overall observation of the outcomes of<br />

the meetings conducted was that there was a genuine interest and support for the Project and support for<br />

the consultation process undertaken. A strong theme that came through the consultation feedback was a<br />

desire for better opportunities for the future of the community and more particularly, the next generation of<br />

young people.<br />

In summary, it was assessed the objectives of the consultation expressed in the following table were<br />

effectively achieved.<br />

Table: Stakeholder engagement objectives<br />

Objective<br />

Result<br />

● Ensure consultation was<br />

comprehensive, all<br />

inclusive, equitable<br />

and thorough<br />

● Help inform decision<br />

making on the project<br />

to mitigate risk and<br />

maximise opportunity<br />

● Further develop<br />

relationships with<br />

stakeholders to help<br />

inform strategies to<br />

develop effective<br />

future engagement<br />

and sustainable<br />

development<br />

initiatives.<br />

● 293 people were involved in the consultation process, many on more than one<br />

occasion due to many leaders having multiple roles.<br />

● This group included a wide cross section of stakeholders in the community.<br />

● While some constraints were experienced within the community, alternative<br />

arrangements were able to be scheduled on most occasions.<br />

● A variety of consultation tools were offered to ensure cultural sensitivity.<br />

● The average length of consultation meeting was three (3) hours reflecting the<br />

comprehensive nature of the subject matter discussed.<br />

● Project managers from the consultation team were involved in a preliminary risk<br />

assessment as part of the planning for the EIS and community-based interests<br />

were raised and factored in.<br />

● Results from the consultation program have been regularly communicated to the EIS<br />

Project team for consideration within further technical studies.<br />

●<br />

● Feedback during consultation was favourable regarding the extent of engagement<br />

conducted, the availability of information and the involvement of the MRM General<br />

Manager.<br />

● The outcomes of the consultation program will also inform forward planning for<br />

MRM’s annual stakeholder engagement strategy developed and implemented in<br />

line with Xstrata’s Sustainable Development Framework.<br />

● Ideas generated regarding local procurement and community programs will also<br />

inform future planning for the supply team and MRM Community Benefits Trust.<br />

© Rowland 2012 Page 7


Letter from the General Manager<br />

© Rowland 2012 Page 8


Introduction<br />

In March 2011, Rowland was engaged to independently manage the community consultation and<br />

engagement program for the Phase 3 Development Project on behalf of <strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong> (MRM).<br />

Rowland is an Australian corporate communication consultancy headquartered in Brisbane. The firm has<br />

had a consulting relationship to MRM since 2005 when it was first engaged to support the communication<br />

of the Draft EIS (August 2005) for the conversion from underground to open pit mining and subsequently<br />

on ongoing community relations activities.<br />

Rowland was supported to conduct this consultation by Darwin-based consultant, Vicky Nangala,<br />

associated with Creative Options Pty Limited. Vicky is a Northern Territory Indigenous woman with<br />

significant experience in journalism, government and community relations.<br />

All consultation meetings were managed and attended by Vicky with MRM General Manager, Ettienne<br />

Moller. Ettienne’s presence at all points of information provision and consultation was important to<br />

demonstrating to our stakeholders the seriousness with which their feedback was taken and the value<br />

that MRM places on its relationships.<br />

This consultation team provided a mix of culturally sensitive support, executive leadership and objective<br />

third party analysis of the findings.<br />

This report provides a detailed overview of the results collected during consultation with community and<br />

key stakeholders undertaken as part of SIA for the EIS for the MRM Phase 3 Development Project.<br />

Consultation captured in this report was undertaken between March 2011 and September 2011, and this<br />

report describes the approach and process, activities undertaken, consultation areas of interest,<br />

outcomes and next steps.<br />

© Rowland 2012 Page 9


Consultation guidelines and principles applied<br />

Stakeholder consultation is recognised as an essential element in the EIS process. From the Project<br />

perspective, it ensures an open, all-inclusive, equitable and comprehensive approach to information<br />

sharing and feedback gathering, with results contributing (as appropriate) to the design of the project. It<br />

also provides communities and key stakeholders with ownership over proposed projects that will impact<br />

them in some way.<br />

As part of the EIS process, EIS guidelines were developed by the NT Government’s Department of<br />

Natural Resources, Environment, The Arts and Sport. The consultation guidelines (objectives) for the EIS<br />

included:<br />

● Acknowledge and discuss the full range of risks presented by the proposed action including those of<br />

special concern to the public.<br />

● Demonstrate that consultation between MRM and stakeholders, which should include acknowledging<br />

and responding to stakeholders’ concerns, has taken place on the closure and rehabilitation of the<br />

site.<br />

● Demonstrate that stakeholders have been consulted about the locations, size and visual impacts<br />

associated with the proposed expansion<br />

● Community liaison and consultation is to include identification of, and ongoing consultation with,<br />

stakeholder groups to ensure the full range of community viewpoints are sought and considered.<br />

MRM is to outline its current and proposed methods for community consultation, including how it will<br />

respond to community feedback, questions and concerns in a formal, publicly accessible<br />

communication plan for the project.<br />

● The EIS has an important role in informing the public about this proposal. It is essential that the<br />

proponent demonstrates how any public concerns were identified, and will influence the design and<br />

delivery of the proposal. Public involvement and the role of government organisations should be<br />

clearly identified. The outcome of any surveys, public meetings and liaison with interested groups<br />

should be discussed including any changes made to the proposal as a result of consultation. Details<br />

of any ongoing liaison should also be discussed.<br />

● An outline of negotiations and discussions with local government and the NT Government should be<br />

provided.<br />

● Consultation with local communities affected by transport impacts<br />

● Provide details of planned community engagement activities including expected benefits to the local<br />

and wider Territory community.<br />

© Rowland 2012 Page 10


Xstrata Zinc Worldwide Guidelines for Stakeholder Engagement<br />

The Xstrata Sustainable Development Framework, specifically Standard 12 – Stakeholder Engagement<br />

Guidelines and its associated policy and procedures at Xstrata Zinc commodity business and MRM site<br />

levels, was referenced during this consultation period, and will continue to be a key set of documents<br />

influencing the ongoing delivery of community and stakeholder engagement. They outline Xstrata Zinc’s<br />

approach to best practice consultation and engagement, and provide a solid foundation for baseline<br />

requirements.<br />

Xstrata believes stakeholder engagement provides a framework to successfully manage challenges, find<br />

innovative solutions and to preserve the social license to operate.<br />

Overarching objectives of effective stakeholder engagement include:<br />

● Support lasting improvement in the quality of life of the communities in the mining areas and<br />

operations.<br />

● Facilitate community empowerment through participatory development processes build local<br />

capacities and development resources.<br />

● Foster constructive working relationships among Xstrata Zinc, communities and governments.<br />

The main principles guiding Xstrata Zinc’s stakeholder engagement conduct include:<br />

● Uphold and promote human rights.<br />

● Respect culture and heritage of communities as defined within local, national and international laws.<br />

● Adopt a strategic approach of social impacts and risks of Xstrata Zinc’s activities and concerns and<br />

needs of existing and future communities through overall stages of projects.<br />

● Develop engagement with all communities within an operation’s area, prioritising vulnerable groups.<br />

● Enhance the social and economic competence and well-being of the communities involved with<br />

Xstrata Zinc’s operations, avoiding dependency and promoting the sustainable development of<br />

business.<br />

Industry best practice approach<br />

The International Association for Public Participation (IAP2) is an internationally recognised organisation<br />

that seeks to promote and improve the practice of public participation in relation to individuals,<br />

governments, institutions, and other entities that affect the public interest.<br />

The IAP2 approach to consultation, informed by their core values (see Appendix 2), is considered best<br />

practice consultation.<br />

The IAP2 has developed a public participation spectrum to demonstrate the levels of public participation<br />

available as part of a project’s stakeholder engagement approach. The spectrum demonstrates that the<br />

differing levels of participation are legitimate depending on the goals, timeframes, resources and level of<br />

concern in the decision to be made.<br />

The model shows increasing levels of participation as stakeholder engagement activities move from<br />

inform to consult, involve, collaborate and finally empower.<br />

A copy of the spectrum is available in Appendix 3.<br />

© Rowland 2012 Page 11


The IAP2 model was used to influence MRM’s stakeholder engagement activities during consultation<br />

about the Phase 3 Development Project. Consultation activities occurred at the ‘inform, consult and<br />

involve’ levels, with some aspects of ‘collaboration’ and ‘empowerment’ used where appropriate.<br />

Consultation team principles<br />

The policies and guidelines established through the EIS Terms of Reference, the Xstrata Sustainable<br />

Development Framework and the IAP2 model have been interpreted into a set of principles which were<br />

considered particularly critical for the Project. These are summarised in Table 3 and outlined in further<br />

detail in the Project’s Consultation Plan (Appendix 1).<br />

Table 3: Consultation team principles<br />

Principle<br />

Comprehensive<br />

All-inclusive<br />

Equitable<br />

Thorough<br />

Description<br />

Thorough in subject matter, covering all generic areas of study expected under an SIA as well<br />

as all specific matters relevant to the design, planning and potential execution of the Phase 3<br />

Development Project.<br />

Recognising the diversity of interests within the Gulf Region: Indigenous and non-Indigenous,<br />

residents and businesses, local, Territory and Australian Government and a range of<br />

organisations with an influence and interest in the future growth of the region. It also ensured<br />

that two-way communication was encouraged with both those who take a high profile and have<br />

prominent positions and community members with traditionally quiet voices.<br />

Providing a range of methods for engaging with the diverse range of stakeholders to ensure all<br />

had equitable access and opportunity to be heard. This included ensuring stakeholders had<br />

ample opportunities to be informed about the Project and EIS, and to ask questions and<br />

receive answers.<br />

Disciplined approach to conducting meetings, capturing feedback and reporting the outcomes<br />

within an effective management system to ensure all responses are accurately reported. This<br />

was important to ensuring the trusted relationship with MRM as a primary source of information<br />

and the feedback conduit in the EIS was maintained.<br />

© Rowland 2012 Page 12


Our approach<br />

General operational consultation and communication activities<br />

MRM currently undertakes robust communication and community relations activities to maintain strong,<br />

positive relationships with key stakeholders and the community. Current activities include one-on-one<br />

and group meetings, site tours, briefings to schools, MRM Community Reference Group meetings,<br />

quarterly release of the MRM newsletter, Memorandum, maintenance of a website, information line and<br />

email address and informal discussions with a wide range of stakeholders both internal and external.<br />

The mine’s community relations staff have regular interactions with community groups. To assist this<br />

process MRM maintains an office in Borroloola where community members can come to seek<br />

information, provide feedback or raise concerns. Members of MRM’s management team and community<br />

relations team are in regular contact with the community through their long-standing active participation in<br />

a number of local community organisations. This includes serving on the Roper Gulf Shire Council<br />

Board.. MRM’S Indigenous Employment Coordinator has ongoing involvement with ISAustralia (the local<br />

Job Services Australia provider), Mabunji Aboriginal Resource Association Inc. (local provider of the<br />

Community Development and Employment Program) and the Borroloola School to provide and support<br />

local people looking at gaining employment at MRM. In addition to this, members of MRM’s<br />

environmental management team work with community groups such as the Li-Anthawirriyarra Sea<br />

Rangers and Traditional Owners throughout the year.<br />

MRM also has a significant level of involvement with the community through the work of the MRM<br />

Community Benefits Trust. With the support of a Project Officer, the Trust has a high level of<br />

engagement with the community through consultation supporting the development of its Annual Plan and<br />

ongoing communication to test and reveal community needs and vision.<br />

© Rowland 2012 Page 13


Methodology<br />

Stakeholder identification and analysis<br />

Stakeholders were identified and classified according to their interest in and influence on the proposed<br />

project.<br />

The identification criteria used to collate the targeted list of stakeholder to be consulted were based on:<br />

○ Responsibility: The people for which the operation is responsible<br />

○ Influence: Stakeholders with influence or decision-making power Proximity: Stakeholders who<br />

interact most with the operation<br />

○ Dependency: Stakeholders directly or indirectly dependent on Xstrata Zinc or dependent on<br />

Xstrata Zinc for other issues<br />

○ Representation: Stakeholders that can claim to represent a constituency<br />

○ Strategy intent: Stakeholders addressed directly or indirectly through Xstrata Zinc policies or value<br />

statements or provision of early warning on emerging issues.<br />

Once identified, every stakeholder was assessed by rating their power over and influence on the<br />

proposed project utilising the Minerals Council of Australia’s model shown in Figure 1.<br />

Figure 1: MCA Power vs Interest table<br />

Source: Socioeconomic Benefits and <strong>Impact</strong>s: an assessment and planning toolkit<br />

As a result of the assessment, the stakeholder groups were ranked in terms of engagement levels<br />

required. Stakeholders perceived to have the highest level of power and interest were managed more<br />

closely than those perceived to have comparatively lower influence. In practice, this means that while all<br />

stakeholders had an equitable opportunity to participate, priority was placed on those with high levels of<br />

influence. Any stakeholder has the potential to move from one classification to the other, therefore,<br />

flexibility and constant review of stakeholder classifications is essential.<br />

© Rowland 2012 Page 14


The constraints of every stakeholder were identified – this may be due to capacity (e.g. time, money,<br />

access to IT) or to competency (e.g. language, expertise). These constraints were taken into<br />

consideration when developing the consultation tactics.<br />

The following figure (Figure 2: Stakeholder classifications) provides detail on the classification of each<br />

stakeholder identified relevant to the Project. Appendix 5 provides further detail on the stakeholder<br />

analysis.<br />

Figure 2: Stakeholder classifications<br />

KEEP SATISFIED<br />

MANAGE CLOSELY<br />

Local business organisations<br />

Other surrounding communities<br />

Traditional Owners<br />

Communities – Yanyuwa<br />

Communities – Gurdanji<br />

Communities – Mara<br />

Communities – Garrawa<br />

Community groups<br />

Indigenous / local services<br />

and NGOs<br />

POWER<br />

MONITOR<br />

Pastoralists<br />

Darwin business organisations<br />

KEEP INFORMED<br />

Employees<br />

Roper Gulf Shire Council<br />

NT Government and agencies<br />

Australian Government<br />

INTEREST<br />

© Rowland 2012 Page 15


Goal<br />

The goal of the consultation plan was to achieve open, equitable, all-inclusive and comprehensive<br />

engagement and consultation with the community and key stakeholders.<br />

Objectives<br />

At a high level, the EIS communication and stakeholder consultation objectives were to:<br />

● Involve as many people as possible in the engagement and consultation process<br />

● Help inform decision making on the project to clearly address concerns<br />

● Collaborate with the community to look at ways to reduce identified project risks and enhance benefits<br />

and opportunities<br />

● Inform strategies to develop effective partnerships with local business to achieve economic outcomes<br />

for the region.<br />

Location of consultation<br />

Consultation opportunities were available to all stakeholders within the Gulf Region including the township<br />

of Borroloola, King Ash Bay and Robinson <strong>River</strong>.<br />

Information provision components of the engagement program were also implemented in Darwin. At all<br />

times, information on the Project was available through the MRM website.<br />

Consultation timeframe<br />

The milestones for consultation are summarised in Table 4.<br />

Table 4: Milestones for consultation<br />

Milestone<br />

Stage 1 Inform – community and stakeholders informed about proposed project and<br />

upcoming EIS process<br />

Stage 2 Consult – community and stakeholders consulted about proposed project through<br />

EIS drafting process<br />

Stage 3 Involve and collaborate – community and stakeholders provided feedback and<br />

opportunity to become involved in mitigation steps moving forward<br />

Timing<br />

March – July 2011<br />

July – September 2011<br />

September 2011<br />

Further detail on the specific activities undertaken as part of each of these stages is provided in Table 5<br />

with communication tool examples demonstrated in Appendix 4.<br />

© Rowland 2012 Page 16


Table 5: Consultation program<br />

Stage Stakeholder groups Activities Tools or references<br />

Stage 1 Inform<br />

Provide an overview of<br />

the planned project and<br />

EIS phase, ensuring<br />

stakeholders and<br />

community are<br />

aware/understand their<br />

feedback and input is<br />

important.<br />

All stakeholders were<br />

targeted through various<br />

touch points.<br />

Media announcement<br />

Briefings with:<br />

- Australian Government<br />

Department of Resources,<br />

Energy and Tourism<br />

- NT Ministers and advisers<br />

- AFANT<br />

- ECNT<br />

- MAWA Board<br />

- MRM CRG<br />

- Roper Gulf Shire Council<br />

- NLC (invited)<br />

- Traditional Owners<br />

Community meetings in<br />

Borroloola and Robinson<br />

<strong>River</strong><br />

Information collateral<br />

distribution<br />

Information stand at<br />

Borroloola Show<br />

Various phone calls and<br />

emails to key stakeholders<br />

● Fact sheet 1 – Project<br />

introduction<br />

● Project presentation<br />

● MRM Newsletter<br />

Memorandum<br />

Stage 2 Consult<br />

Provide in-depth<br />

information about<br />

proposed project<br />

Consult and obtain<br />

feedback about proposed<br />

project, impacts, benefits,<br />

issues<br />

Share this information<br />

with the EIS project team,<br />

with feedback fed into the<br />

design process.<br />

All stakeholders were<br />

targeted through various<br />

touch points.<br />

One-on-one consultation<br />

sessions with groups and<br />

individuals<br />

Group meetings (focus<br />

group style)<br />

Site tours<br />

Information collateral<br />

distribution<br />

● Fact sheet 1 – Project<br />

introduction<br />

● Fact sheet 2 – Tailings<br />

Storage Facility<br />

● Fact sheet 3 –<br />

Overburden<br />

● Other general MRM fact<br />

sheets on<br />

Cultural Heritage<br />

Management, Regional<br />

Development,<br />

Rehabilitation of<br />

<strong>McArthur</strong> <strong>River</strong> and<br />

Barney Creek, Marine<br />

Monitoring, Pathways to<br />

Employment<br />

● Meeting guidelines<br />

© Rowland 2012 Page 17


Stage Stakeholder groups Activities Tools or references<br />

Stage 3 Involve and<br />

collaborate<br />

September 2011<br />

Provide feedback on the<br />

outcomes of the<br />

consultation process.<br />

Work with key<br />

stakeholders to gain input<br />

into proposed risk<br />

mitigation and opportunity<br />

maximisation strategies.<br />

Roper Gulf Shire Council<br />

(Borroloola)<br />

Communities – Yanyuwa<br />

Communities – Gurdanji<br />

MAWA<br />

Communities – Mara<br />

Communities – Garrawa<br />

Communities – General<br />

MRM CRG<br />

Mabunji Aboriginal<br />

Resource Association<br />

Meetings with key groups<br />

Community meetings –<br />

Borroloola, Robinson <strong>River</strong><br />

● All fact sheets<br />

● Presentations<br />

● Meeting guidelines with<br />

consultation report notes<br />

Communication tools and activities<br />

Copies of the fact sheets and project newsletters are available at Appendix 4 and a general description of<br />

each is summarised in Table 6.<br />

Table 6: Communication tools and activities<br />

Type<br />

Communication<br />

tool / activity<br />

Detail<br />

Project Fact sheets ● Used as a means of providing general information and proactively<br />

communicating about anticipated areas of interest, or issues which<br />

repeatedly arise through consultation<br />

● Phase 3 Fact sheet 1 – Project introduction<br />

● Phase 3 Fact sheet 2 – Tailings storage facility<br />

● Phase 3 Fact sheet 3 – Overburden<br />

● Other MRM fact sheets available – Cultural Heritage Management,<br />

Regional Development, Rehabilitation of <strong>McArthur</strong> <strong>River</strong> and Barney<br />

Creek, Marine Monitoring, Pathways to Employment.<br />

Presentations<br />

● Master presentation used at community meetings / information sessions.<br />

Hotline / email ● Information line number - 1800 211 573<br />

● Project email – mrmprojeng@xstrata.com.au<br />

● Both managed by Rowland.<br />

Website<br />

Site visits<br />

Newsletter<br />

● General MRM website contained a section on the Phase 3 Development<br />

Project, including fact sheets and general project information.<br />

● Site visits were a key tool for targeting stakeholders in the ‘Manage<br />

Closely’ category, showing mining operations first hand, and using<br />

physical references to explain the Project.<br />

● Memorandum is MRM’s quarterly newsletter and provided information<br />

updates on the project in the April and October editions.<br />

© Rowland 2012 Page 18


Type<br />

Communication<br />

tool / activity<br />

Detail<br />

Positioning strategy ● Key messages – see Section 7<br />

● Questions & Answers (Q&As) – see Section 8<br />

● Important tools for general project communication and issues mitigation.<br />

Community<br />

Relations<br />

Consultation<br />

Community<br />

meetings<br />

MRM Community<br />

Reference Group<br />

One-on-one<br />

meetings<br />

Meeting guides<br />

Images, diagrams,<br />

maps<br />

● Minutes or notes recorded and entered into CMS*.<br />

● Regular March meeting was used as an opportunity to provide information<br />

about the Project.<br />

● June meeting was used as a focus group to consult on the Project.<br />

● September meeting was used as part of the involve and collaborate stage<br />

3 of consultation.<br />

● Main activity undertaken during consultation process<br />

● Notes taken during / immediately after discussions captured.<br />

● Standard line of questioning to prompt consultation with stakeholders to<br />

ensure each meeting or focus group comprehensively covered all<br />

subjects required generally for a social impact assessment and<br />

specifically for the Terms of Reference and perceived issues and<br />

opportunities relevant to the Project.<br />

● Visual communication tool used during meetings / presentations / informal<br />

discussions to provide information about project.<br />

*CMS (Consultation Manager System) is an online stakeholder data management software program that captures and stores all<br />

contact with indentified stakeholders, allowing easy access to information for analytical and informative purposes.<br />

Special considerations<br />

Cultural awareness<br />

When conducting consultation with Indigenous communities, the Project team acknowledged various<br />

considerations to ensure the consultation process was culturally sensitive and appropriate. The team<br />

recognised that Indigenous culture is unique, with its own history, beliefs and values, and when engaging<br />

in consultation, these cultural and historical factors were recognised and respected.<br />

Consultation was delivered in line with local Indigenous customs. This demonstrated respect for the<br />

Indigenous people, their customs and their country – the consultation team were guests in their<br />

community, and our approach reflected this appreciation.<br />

In the region where consultation was conducted, there were four language groups to engage, so the<br />

approach was tailored to ensure each group was consulted in the most appropriate way to meet the<br />

needs of the individuals and language groups. A ‘one size fits all’ approach to consultation simply would<br />

not have worked, and would have been regarded as a disrespectful approach to consultation.<br />

Respect was of the utmost importance – respect for elders, the land, animals and ancestors are<br />

fundamental aspects of the Indigenous culture, and the consultation team acknowledged this in various<br />

ways during consultation:<br />

© Rowland 2012 Page 19


● The consultation team requested permission to meet with the Traditional Owners of each language<br />

group, and meetings were established on days and at locations that were convenient to them<br />

● The consultation team did not go into language group communities unless invited by the Traditional<br />

Owners.<br />

● Women’s business and men’s business were respected, with some consultation occurring in gender<br />

specific groups.<br />

● Consultation was founded in oral communication, with some written materials/diagrams/maps to<br />

support discussion. This ensured the consultation was clear and easy to understand, which promoted<br />

and encouraged involvement and feedback.<br />

● Consultation also involved site tours to give the Indigenous community a visual understanding of the<br />

areas the consultation would focus on. For example, while on site at MRM, visitors were taken to see<br />

the tailings storage facility, the overburden emplacement facility and the rehabilitation works at<br />

<strong>McArthur</strong> <strong>River</strong>.<br />

● All people involved in consultation were asked permission for the sessions to be recorded so accurate<br />

documentation of the consultation could be developed.<br />

● On the unfortunate occasions that deaths in the community occurred, the Project team sombrely<br />

respected cultural commitments which needed to be undertaken as part of ‘sorry business’.<br />

To further demonstrate respect for the Indigenous community, consultation was undertaken by Ettienne<br />

Moller, the General Manager of MRM, together with Vicki Nangala, a qualified communications<br />

professional and Indigenous woman from the NT. Having the General Manager involved in the<br />

consultation process was MRM’s way of demonstrating the significance of meeting with the Indigenous<br />

community, and the importance of receiving their comments and feedback. Vicky’s connection with the<br />

community was important to ensuring cultural considerations were respected.<br />

Constraints to consultation<br />

There were four key constraints to consultation:<br />

1. Sorry business<br />

The consultation team respects the level of involvement and cultural commitment required by family<br />

members following the passing of another family member (sorry business). Unfortunately, there were a<br />

number of occasions where community members were unable to be involved in the consultation process<br />

due to sorry business. The team has utmost respect for this cultural practice, and consultation activities<br />

were rescheduled wherever possible.<br />

2. Consultation fatigue<br />

During the period of March through to August 2011, there were a number of other project consultation<br />

activities occurring in the region which contributed to a level of consultation fatigue within the community.<br />

These consultation activities were being conducted by organisations including the Department of<br />

Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the MRM Community<br />

Benefits Trust. Wherever possible and appropriate, consultation on the Project was held at the same<br />

location and directly pre or post the above other consultation activities to provide an efficient and effective<br />

use of community member time/availability.<br />

© Rowland 2012 Page 20


Even with these other commitments, we were pleased to have been able to reach a large number of<br />

community stakeholders which was a measure of the level of interest in the Project.<br />

3. Accessibility<br />

Due to a number of other events and cultural activities occurring in the region, accessibility to community<br />

members and stakeholders was sometimes difficult. For example, the Mount Isa Rodeo (13-15 August<br />

2011) attracted a number of visitors from the target region, and the NAIDOC festival (3– 10 July) was an<br />

important celebration which also reduced accessibility to key community members and stakeholders due<br />

to involvement.<br />

4. Availability<br />

Due to a number of community members and key stakeholders having employment responsibilities and<br />

other commitments, availability became another constraint to consultation. Again, wherever possible and<br />

appropriate, consultation was structured around this constraint to ensure as many people as possible<br />

were given the opportunity to be involved in the process. This meant, for example, some meetings were<br />

held before and after normal working hours or during employee break periods (such as morning/afternoon<br />

tea and lunch).<br />

Consolidation of results<br />

The results of all consultation were consolidated into regular reports and relayed to the EIS project team<br />

for consideration into the project design and decision making process. Mitigation and enhancement plans<br />

were developed to manage impacts and improve the benefits of the project for the community.<br />

© Rowland 2012 Page 21


Consultation outcomes<br />

Community and stakeholder participation<br />

Table 7 below provides a summary of stakeholder participation in consultation activities undertaken<br />

during the EIS consultation period (March to August 2011). It includes details of participation in public<br />

and private meetings, site visits, phone calls and emails.<br />

Table 7: Community and stakeholder participation<br />

Stakeholder group<br />

Number of<br />

stakeholders<br />

consulted*<br />

Site visit<br />

Meeting<br />

Community<br />

meeting<br />

Phone – outgoing<br />

Phone – incoming<br />

Email – outgoing<br />

Email – incoming<br />

Australian Government 4 0 3 0 0 0 0 0<br />

NT Government, agencies and<br />

services<br />

21 1 7 0 7 0 1 0<br />

Roper Gulf Shire Council (Borroloola) 14 0 7 1 17 0 1 1<br />

Traditional owners (of area) 39 3 16 1 20 1 1 1<br />

Communities – Gurdanji 19 3 7 0 7 0 1 0<br />

Communities – Yanyuwa 22 2 10 1 12 1 1 0<br />

Communities – Garrawa 27 3 13 1 12 0 1 1<br />

Communities – Mara 16 2 7 0 2 0 0 0<br />

Local business organisations 19 1 8 0 17 0 1 0<br />

Community groups 35 3 19 1 30 1 2 1<br />

Indigenous / local services and nongovernment<br />

organisations<br />

41 3 19 1 23 0 1 0<br />

Other surrounding communities 18 1 10 0 9 0 1 1<br />

* Stakeholders that are part of two or more stakeholder groups are counted in each group.<br />

It is important to note, many of the private meetings were held with Traditional Owners and Elders within<br />

the four Indigenous language groups reflecting their high level of priority. It is understood that Indigenous<br />

customs require meetings to be held with Elders initially, and it is then their role to pass information on to<br />

other group members.<br />

While this approach is acknowledged and respected, it is impossible to gain an accurate measure on the<br />

wide ranging reach of consultation during this period as many more Indigenous community members<br />

would have been informed about the proposed project (by their Elders) than consultation records indicate.<br />

© Rowland 2012 Page 22


Likewise, members of community groups like the MRM Community Reference Group have a<br />

responsibility to act as a conduit to the broader community to ensure applicable information is shared with<br />

the broader community.<br />

In addition, it is important to note there was an additional meeting set up with Katherine-based<br />

representatives of the Roper Gulf Shire Council in early July 2011, however this meeting was cancelled<br />

(at the request of RGSC representatives) but not rescheduled.<br />

Summary - areas of interest identified during consultation<br />

While all consultation meetings utilised the same line of questioning, the stakeholders involved naturally<br />

chose to concentrate on certain topics of most interest to them. A diversity of subjects were raised<br />

through consultation phase as demonstrated in Table 8.<br />

The table outlines the number of times a topic of interest was raised by each stakeholder group. For<br />

example, for community organisations, the most frequently raised area of interest was employment,<br />

followed by the MRM Community Benefits Trust and Bing Bong loading facility.<br />

It is clear from these statistics that overall, employment was the primary area of interest for all stakeholder<br />

groups within the Borroloola region. The topic of youth opportunities was closely linked to the topic of<br />

employment, particularly among Traditional Owners, who were focussed on discussing employment<br />

opportunities for their children.<br />

Between March and September 2011 MRM conducted a total of 130 points of community and<br />

stakeholder engagements .<br />

In 11% or 21 of these engagements, employment was raised as a specific matter of interest. The MRM<br />

Community Benefits Trust was raised 18 times and Traffic and roads 16 times. This analysis also shows:<br />

- Government (Federal and NT) are more interested in Bing Bong loading facility than communitybased<br />

stakeholders<br />

- Gurdanji and Mara community members are most interested in mine rehabilitation.<br />

Key for Table 8:<br />

Most-raised area of interest for the stakeholder group<br />

Second-most raised area of interest for the stakeholder group<br />

Third-most raised area of interest for the stakeholder group<br />

© Rowland 2012 Page 23


Table 8: Areas of interest raised by stakeholder groups<br />

Stakeholder group<br />

Accommodation<br />

and travel<br />

Bing Bong<br />

MRM Community<br />

Benefits Trust<br />

Compensation /<br />

royalties<br />

Construction<br />

Consultation<br />

Cultural Heritage<br />

Design<br />

Dust / air quality<br />

Economic<br />

contribution<br />

Employment<br />

Fauna<br />

Flora<br />

General<br />

Loading /<br />

shipping<br />

Monitoring /<br />

surveys<br />

OEF<br />

Procurement<br />

Rehabilitation<br />

TSF<br />

Traffic and roads<br />

Water<br />

management<br />

Youth<br />

opportunities<br />

Australian Government 0 3 1 0 1 0 0 0 1 0 2 0 0 1 1 2 2 0 1 2 2 1 2<br />

NT Government / agencies 2 5 3 0 2 0 0 2 2 1 5 0 1 1 3 2 3 0 4 4 3 1 4<br />

Roper Gulf Shire Council (Borroloola) 0 3 4 1 1 0 2 0 1 2 7 0 1 0 2 2 2 0 4 2 3 3 5<br />

Traditional owners of area 6 7 11 1 1 0 4 0 4 7 12 1 4 2 3 5 4 0 9 6 10 5 11<br />

Language group – Gurdanji 4 6 6 1 1 0 3 0 4 2 7 0 2 0 3 3 3 0 7 5 6 2 5<br />

Language group – Yanyuwa 5 5 6 0 1 0 2 0 2 6 7 1 4 2 2 3 3 0 6 4 7 2 7<br />

Language group – Garrawa 5 7 9 0 1 1 3 0 4 5 10 1 3 3 3 5 4 1 7 6 9 4 8<br />

Language group – Mara 4 5 5 1 1 0 2 0 3 2 6 0 2 0 2 3 2 1 6 4 6 2 4<br />

Businesses 1 2 6 0 1 0 1 0 2 2 7 0 0 7 3 2 3 1 3 2 5 3 3<br />

MRM community groups 7 9 13 1 1 0 4 1 5 6 15 0 2 0 3 3 3 1 7 5 6 2 5<br />

Indigenous / local services / NGOs 7 7 12 1 1 1 3 1 4 6 12 0 3 6 3 4 4 6 6 5 10 3 8<br />

Other surrounding communities 2 4 7 0 1 0 0 1 3 3 6 1 1 3 2 4 3 1 4 5 5 3 3<br />

© Rowland 2012 Page 24


In summary, the areas of interest and their relative level of importance to all stakeholders is reflected in<br />

Figure 3. As previously indicated, the most frequent topics raised were in relation to employment, the<br />

Trust, traffic and roads.<br />

Figure 3: Frequency of topics of focus for consulted stakeholders (% of times raised in<br />

consultation meetings)<br />

Loading / shipping<br />

2%<br />

Dust / Air quality<br />

3%<br />

Cultural heritage<br />

3%<br />

Water management<br />

4%<br />

Overburden Emplacement<br />

Facility<br />

4%<br />

Flora<br />

2%<br />

Compensati<br />

on /<br />

royalties<br />

1%<br />

Monitoring / surveys<br />

4%<br />

Design<br />

2%<br />

Construction<br />

1%<br />

Procurement<br />

Consultation<br />

1%<br />

1%<br />

Employment<br />

11%<br />

Fauna<br />

1%<br />

MRM Community<br />

Benefits Trust<br />

10%<br />

Traffic and roads<br />

8%<br />

Accommodation and travel<br />

4%<br />

General<br />

8%<br />

Tailings Storage Facility<br />

5%<br />

Economic contribution<br />

6%<br />

Bing Bong<br />

6%<br />

Rehabilitation<br />

6%<br />

Youth<br />

opportunities<br />

7%<br />

Employment<br />

Employment matters were raised by every stakeholder group and mostly focused on the positive<br />

opportunities presented through the Phase 3 Development Project. The increase in Indigenous<br />

employment over recent years was also noted as a positive contribution by MRM.<br />

The Traditional Owners, language groups and Indigenous / local services and non-government<br />

organisation stakeholder groups also commented on the associated positive impacts of increased local<br />

employment and said they would like to see more opportunities made available for their young people.<br />

“For those members of our town who work at MRM, there is a real sense of pride, both for the<br />

individual worker and the township as a whole.”


“MRM workers get off the bus – the miners bus – and they are really happy. They walk with their heads<br />

held high, their family waiting for them, with smiles. They are really happy.”<br />

Taken from Safe House meeting held on 20 July 2011.<br />

Some concerns raised with employment were associated with housing, as employees’ income puts them<br />

outside the eligibility criteria for housing in Borroloola and with no private housing available, workers<br />

choose to move to Darwin and fly-in and fly-out.<br />

Other associated concerns include the increased affordability of alcohol leading to social problems in<br />

town once workers are on days off.<br />

Despite these negatives, all stakeholders agreed the increased employment opportunities were a good<br />

thing for the people, the town of Borroloola and other surrounding communities.<br />

MRM Community Benefits Trust<br />

The MRM Community Benefits Trust was raised by most stakeholder groups as a matter of interest with<br />

stakeholders interested to know if MRM contributions to the Trust would increase as a result of the<br />

expansion.<br />

“If the mine is expanding, then the slice that goes to the Trust should go up too.”<br />

Taken from Sea Rangers meeting held on 4 August 2011.<br />

The Trust was well regarded by most stakeholders; however there was some uncertainty about how it<br />

was separate to MRM and how grants were approved.<br />

Some stakeholders/stakeholder groups, including the Borroloola Clinic, Cairns Industries, Traditional<br />

Owners (Gurdanji and Yanyuwa), and the Sea Rangers had suggestions for how Trust funds could be<br />

allocated however, as this is a matter for the MRM Community Benefits Trust Board, enquiries were<br />

redirected as appropriate.<br />

Traffic and roads<br />

Most stakeholder groups enquired about the additional traffic movements likely to be generated by the<br />

Project. No concerns were raised when told the proposed project would double truck movements.<br />

Stakeholders consistently raised concern about the condition of the main roads connecting the mine with<br />

Borroloola, Bing Bong and King Ash Bay. A majority of stakeholders specifically raised concerns about<br />

the condition of the roads during the wet season.<br />

“The roads and road conditions are a concern.”<br />

Taken from Mabunji Board meeting held on 3 August 2011.<br />

Most stakeholders acknowledged that the condition of the roads was the responsibility of the government,<br />

however some stakeholders would like to see MRM involved in lobbying the NT Government to draw<br />

attention to this issue.<br />

© Rowland 2012 Page 26


Areas of interest – detailed analysis<br />

Employment<br />

Employment was the most significant area of discussion during the consultation phase. It was an area of<br />

specific focus in 11% of all consultation. The topic of employment was covered by discussing four key<br />

areas:<br />

1. Local employment<br />

2. Youth employment<br />

3. Employment communication/advertising<br />

4. <strong>Impact</strong>s of employment.<br />

Local employment<br />

Consultation revealed strong support for the Project based on its potential to provide increased local<br />

employment opportunities which delivered benefits to the sole worker and also the wider community.<br />

“More employment is a positive, and it provides more structure to the lives of the locals.”<br />

Taken from Borroloola Police meeting held on 19 July 2011.<br />

The consultation captured input from people who had family members working at the mine, and there was<br />

an obvious sense of achievement in their comments and responses.<br />

“For those locals who work at MRM, there is a real sense of pride, both for the individual worker and<br />

the township as a whole.”<br />

Taken from Safe House meeting held on 20 July 2011.<br />

It was clear through the feedback received that local employment linked very closely with regional<br />

development (below) as stakeholders and community members drew correlations between the<br />

experience and knowledge gained through employment at MRM and the future development and<br />

sustainability of their town. Employment was also closely linked to housing and accommodation, which<br />

was highlighted as a key issue for the town. It was raised that if you have gainful employment, you are no<br />

longer eligible to rent public housing, yet can’t purchase your own home due to lack of housing availability<br />

and land.<br />

“The main issue is that those employed at the mine can’t use that income to buy their own house.<br />

There is a lack of houses, a lack of available land.”<br />

Taken from Borroloola Clinic meeting held 28 July 2011.<br />

Youth employment<br />

Consultation revealed youth employment was the key priority for a number of community members, and<br />

one of the driving factors behind their support for the Project.<br />

“The most important thing to come out of this project is employment for our children.”<br />

Taken from Traditional Owner - Yanyuwa Group meeting held on 29 July 2011.<br />

A significant number of community members raised their concerns for the youth of the community,<br />

specifically, the current lack of employment opportunities that would provide a rewarding future. MRM and<br />

© Rowland 2012 Page 27


the Phase 3 Development Project were seen as an option for youth and a way to grow and develop the<br />

next generation.<br />

Employment communication/advertising<br />

The need for more information, communication and advertising of MRM employment opportunities was<br />

highlighted as an action by community representatives. These comments are directly linked to the topics<br />

of local and youth employment – community members want to ensure employment opportunities are<br />

offered (as appropriate) to locals initially through heavy promotion at the school and other key areas<br />

around town.<br />

“There needs to be more promotion of the type of jobs you can get when working on the mine to<br />

promote understanding and interest...”<br />

Taken from general community and local services meeting held on 21 July 2011.<br />

Community members also raised the importance of ensuring locals were aware and understood that<br />

employment at MRM could be different and varied – for example, consultation revealed a number of<br />

community members saw truck driving as the only work available to locals at MRM.<br />

“There are other job opportunities at MRM – IT as well as truck driving.”<br />

Taken from Traditional Owner - Yanyuwa Group meeting held on 16 August 2011.<br />

<strong>Impact</strong>s of employment<br />

While the positives of employment were clearly highlighted, the perceived negatives or impacts on the<br />

community were also discussed. These impacts can be captured under two broad headings:<br />

1. Humbugging<br />

2. Alcohol management.<br />

Humbugging<br />

Humbugging is a term applied to various forms of begging – the term refers primarily to the practice of<br />

demanding money from relatives on a regular basis. It was learned through the consultation process that<br />

humbugging is a common and serious issue faced by the employed Indigenous community in Borroloola,<br />

and particularly those employees of MRM.<br />

“...there are sometimes issues when employees return to town with crowding and humbugging from<br />

family members to give them money.”<br />

Taken from Savannah Way Motel meeting held on 19 July 2011.<br />

While humbugging is not directly related to the Project, it can be classified as an associated potential<br />

impact, as well as an identified concern within the community.<br />

© Rowland 2012 Page 28


Alcohol management<br />

Stakeholders raised alcohol as a general issue for the community, and this issue is further enhanced by<br />

community members with a disposable income.<br />

“Employees need assistance to manage their wages, particularly relating to spending money on alcohol.”<br />

Taken from Borroloola Police meeting held on 19 July 2011.<br />

“We are concerned about alcoholism in town. There needs to be more education around alcohol – a lot<br />

of MRM workers blow their money on beer.”<br />

Taken from Safe House meeting held on 20 July 2011.<br />

<strong>Impact</strong>s and opportunities — Employment<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● Local employment<br />

● Youth employment<br />

●<br />

<strong>Impact</strong> – Negative<br />

● Alcohol management education<br />

● Less school drop-outs and more gainful employment<br />

● Benefits to both employees and the wider community.<br />

Threats<br />

● Humbugging<br />

● Alcoholism/drug use in town<br />

● Accommodation / housing availability.<br />

●<br />

● Insufficient awareness of job opportunities<br />

● Lack of land availability for new housing development<br />

● Lack of private house availability for rent or acquisition<br />

Regional development<br />

The topic of regional development was covered by discussing five key areas:<br />

1. MRM Community Benefits Trust<br />

2. Youth opportunities<br />

3. Traffic and roads<br />

4. Accommodation and travel<br />

5. Other.<br />

A broad number of topics of interest and issues were raised relating to regional development and<br />

sustainability, with the outstanding area of interest being the MRM Community Benefits Trust. Other<br />

issues raised included extensive discussion about road conditions in the area, opportunities for young<br />

people as the future of the region, and housing and accommodation concerns.<br />

MRM Community Benefits Trust<br />

A number of stakeholders in the community were interested in discussing potential opportunities for the<br />

Trust, understanding how grant applications could be made, and recognising the contributions the Trust<br />

had already made toward the sustainability of the local area. In relation to the proposed Project,<br />

© Rowland 2012 Page 29


stakeholders wished to know whether there would be additional funding allocations to the Trust in line<br />

with additional outputs from the mine.<br />

‘With the mine expansion, will there be an additional offload to the Trust? Is the life of the Trust to be<br />

extended?’<br />

Taken from MRM CRG meeting held on 11 July 2011 .<br />

‘What about the CBT? Will that increase? Is there going to a percentage of the mine profit to go to the<br />

Trust?’<br />

Taken from Borroloola Clinic meeting held on 28 July 2011.<br />

‘If this goes ahead, is there any other money that’s going to come out of that expansion to go on to the<br />

Trust?’<br />

Taken from Mabunji Board meeting held on 3 August 2011.<br />

The project team advised the life of the Trust would be extended in line with the life of the mine, however<br />

were unable to provide an answer about whether yearly funding allocations would increase. The<br />

community were advised that under the Agreement for the establishment of the Trust, the funding<br />

commitments are scheduled to be reviewed in 2015 to consider any appropriate change in the amount<br />

invested subject to a number of considerations.<br />

Questions were asked regarding how funding was allocated and how grant applications could be made,<br />

which indicated a low level of general understanding and awareness about the Trust funding process.<br />

Many were also unaware that an MRM Community Benefits Trust Project Officer visited the region on a<br />

regular basis to provide support and assistance in making grant applications.<br />

‘If people could talk with us about the Community Benefits Trust to help us to fill applications out<br />

properly and make sure we do things the right way... lots of people don’t know the mine and the Trust<br />

are separate. Who do we go through at the mine? We don’t know how much we can get.’<br />

Taken from Safe House meeting held on 20 July 2011.<br />

‘It would be good to get the guidelines to access the Community Benefits Trust. It would be good to<br />

have these protocols available.’<br />

Taken from Borroloola Clinic meeting held on 28 July 2011.<br />

The opportunity to increase the promotion of the Trust’s function and the role and availability of the<br />

Project Officer will be a key consideration for MRM as a result of this consultation period.<br />

There was also uncertainty raised about the type of projects or initiatives the Trust could fund, with<br />

questions raised as to why the Trust could not fund improved sewerage in the town of Borroloola, and<br />

whether the Trust could fund a Gurdanji Traditional Owner to undertake caring for country duties at and<br />

around the mine. The project team explained the Trust was unable to fund infrastructure which was<br />

otherwise the responsibility of government authorities, but encouraged enquiries to be made to the MRM<br />

Community Benefits Trust Project Officer as to whether initiatives (such as the caring for country initiative)<br />

may be supported.<br />

Overall, the community indicated clear support for the Trust and the benefits it provides to the community.<br />

‘People might be expecting more in the Community Benefits Trust, but they are quite happy to have it.’<br />

Taken from Borroloola Police meeting held on 19 July 2011.<br />

© Rowland 2012 Page 30


‘The impact of the Project will be positive - more jobs, the Community Benefits Trust... the Trust helps<br />

the kids out. It’s good.’<br />

Taken from Cairns Industries meeting held on 29 July 2011<br />

<strong>Impact</strong>s and opportunities — Regional development (MRM Community Benefits Trust)<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● Extended life of the MRM Community Benefits Trust,<br />

taking the amount of allocated funding to the order of<br />

$40 million over the life of the mine<br />

● Recognition of the benefits the Trust has provided the<br />

local area to date.<br />

<strong>Impact</strong> – Negative<br />

● Review to be conducted of Trust funding allocation in<br />

2015<br />

● High level of interest in how the Trust works and how it<br />

can be accessed means an education campaign /<br />

increased promotion will be well-received by the<br />

community, leading to an increase in suitable grants<br />

● Positive potential opportunities for Trust funding were<br />

identified during consultation, to be followed up by<br />

the Trust Project Officer.<br />

Threats<br />

● Local capacity to prepare submissions and manage<br />

potential Trust funding opportunities may not be<br />

available<br />

● Low level of awareness or understanding about the<br />

how the Trust works, the types of projects it funds<br />

and how to access grants.<br />

Youth opportunities<br />

A significant amount of concern and interest in the future of youth in the region was shown by<br />

stakeholders and the community during consultation. General sentiments held that the proposed Project<br />

would build on opportunities for young people, particularly relating to employment, but also linking with<br />

provision of more services and social infrastructure for youth through the MRM Community Benefits Trust.<br />

There was a high level of positivity about support for youth across the four language group leaders.<br />

‘There are a lot of things we want for our young people.’<br />

Taken from Safe House meeting held on 20 July 2011.<br />

‘The (Borroloola Swimming Pool) was a good thing; we would like more things for our young ones. If<br />

the mine could bring things for the children, it would be good. ... We would like a drop-in centre for<br />

teenagers. If we have our own hostel, another softball oval... At the moment we have basketball and<br />

netball together, what we need is our own basketball court. What we need is things like that for our<br />

young people in Borroloola.’<br />

Taken from Safe House meeting held on 20 July 2011.<br />

‘We want to set up a kids’ camp out on the (Sir Edward Pellew Islands). The young fellas need<br />

somewhere for the old people to teach them, to get out of town. We’ll get together and work out which<br />

Island – for troubled kids.’<br />

Taken from Traditional Owner - Yanyuwa Group meeting held on 16 August 2011.<br />

© Rowland 2012 Page 31


Such comments indicated a strong sense of concern and a vision for the types of additions to the area<br />

needed to create a stronger future for the youth. Some stakeholders also saw the MRM Community<br />

Benefits Trust as being a vehicle with which to create these outcomes, with encouragement provided by<br />

the project team for stakeholders to approach the Trust for funding if applications were not already<br />

underway.<br />

Interest was shown by Roper Gulf Shire Council (Borroloola) in working with MRM on possible programs<br />

for diversion of youth away from succumbing to social issues, such as drug and alcohol abuse, into<br />

obtaining meaningful employment.<br />

Concern was also shown by stakeholders regarding education of young people about money<br />

management, particularly relating to avoidance of spending large sums of money on drugs and alcohol.<br />

The project team discussed that money management is part of the MRM induction process and preemployment<br />

training for new apprentices and trainees. This includes assisting Indigenous people to set<br />

up bank accounts.<br />

Stakeholders commented that young people needed encouragement to attend schooling for their longterm<br />

security.<br />

‘If only we could get some more young people who don’t go to school – get them motivated to get<br />

training, to get their school work done. You know – something for them. I spoke with the school about<br />

getting someone from the mine to talk with them.’<br />

Taken from general community and local services meeting held on 20 July 2011.<br />

‘You should be looking at getting kids interested in the mining industry, letting them know about the<br />

different jobs available.’<br />

Taken from general community and local services meeting held on 21 July 2011.<br />

While clear support was shown for the employment opportunities the mine presented for local youth,<br />

stakeholder comments indicated there was a lack of awareness about programs and initiatives in place or<br />

under discussion to address this issue, including a Vocational Education Training program aimed at<br />

attracting youth, and the MRM Community Benefits Trust-funded NT Government Bright Start, Strong<br />

Future program (launched post consultation on 29 August 2011).<br />

Across the board, many felt the mine presented positive opportunities for young people.<br />

‘It’s an opportunity for young people. They get home after high school, just fighting and getting on the<br />

grog. They need some motivation; they need something to do...’<br />

Taken from Traditional Owner - Yanyuwa Group meeting held on 29 July 2011.<br />

‘The young people ask us elders, ‘you get anything from the mine?’ We tell them if you want a house<br />

or a motor car, well, there is work at the mine for them to get those things for themselves. We, as<br />

leaders, have to encourage our young people to work. (The mine) is going to be there for awhile, so<br />

they have got to take that opportunity.’<br />

Taken from Traditional Owner - Gurdanji Group meeting held on 16 August 2011.<br />

© Rowland 2012 Page 32


<strong>Impact</strong>s and opportunities — Regional development (Youth opportunities)<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● Increase in youth opportunities relating to employment<br />

and training<br />

● Potential for increase in services and facilities for youth<br />

through MRM Community Benefits Trust<br />

● Strong level of support and drive shown by community<br />

leaders in encouraging youth involvement in<br />

employment and other opportunities.<br />

<strong>Impact</strong> – Negative<br />

● High level of community support for mine initiatives<br />

relating to youth opportunities<br />

● Invitation to work with Roper Gulf Shire Council on<br />

youth diversion strategy<br />

● Numerous ideas identified with community members<br />

about facilities to improve way of life for youth,<br />

leading to opportunity for Trust Project Officer to<br />

proactively engage with appropriate stakeholders<br />

● Promotion about MRM’s involvement in educational<br />

programs and initiatives may help raise awareness.<br />

Threats<br />

● Education on money management required on an<br />

ongoing basis to assist youth employed at the mine<br />

to overcome social issues<br />

● Low level of awareness about programs with MRM<br />

involvement relating to vocational education training<br />

and other school-based initiatives.<br />

● Need to motivate young people - <strong>Social</strong> issues such as<br />

drug and alcohol abuse, humbugging, overcrowding<br />

mean youth may be disengaged and uninterested in<br />

opportunities available to them.<br />

Traffic and roads<br />

The EIS Guidelines requested particular consultation with stakeholders and the community about<br />

potential impacts of additional trucks travelling between the mine site and the Bing Bong loading facility,<br />

together with additional trucks servicing the mine.<br />

Consultation revealed that while there were no concerns relating to the proposed increase in truck<br />

activities, concerns were prevalent across the region relating to poor road conditions resulting from<br />

general traffic, truck traffic, the wet season and a low level of maintenance. There was a level of<br />

understanding indicated that road maintenance was the responsibility of the NT Government, however<br />

stakeholders still questioned whether the mine could offer any improvements to roads.<br />

‘At the end of the day, the drivers are tested, they are licensed and the trucks are roadworthy. I don’t<br />

have any problems with extra trucks on the road. The only thing that worries me – but I know it’s not<br />

your responsibility – is the roads and allocation from Main Roads for maintenance. The wet season<br />

impact.’<br />

Taken from Safe House meeting held on 20 July 2011.<br />

‘The roads need to be fixed, the highway.’<br />

Taken from Safe House meeting held on 20 July 2011.<br />

Specific queries related to particular roads stakeholders wished to have improved, and MRM’s capacity to<br />

undertake this work.<br />

© Rowland 2012 Page 33


‘Can the Mine improve the road to Bing Bong?’<br />

Taken from Borroloola Clinic meeting held on 28 July 2011.<br />

‘What about Mule Creek Road? I like to go out there to fish, but the road is very rough. Can you help<br />

out with that?’<br />

Taken from Savannah Way Motel meeting held on 19 July 2011.<br />

The community were advised discussions had commenced with the NT Government regarding the issue<br />

of road maintenance, and this will form part of ongoing investigations and discussions, and the<br />

community would be advised of the outcomes. This is a priority for the MRM management team as a<br />

result of this consultation. MRM were also able to commit to continuing maintenance of Mule Creek Road<br />

for ongoing safe access in the area.<br />

Road safety was broached by stakeholders as being a minor issue, particularly relating to people drink<br />

driving or laying drunk on the road, and increased signage.<br />

‘We worry about people drunk on the road.’<br />

‘Drive carefully, more signage.’<br />

Both quotes taken from Women’s site tour held on 10 August 2011.<br />

<strong>Impact</strong>s and opportunities — Regional development (Traffic and roads)<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● MRM has made an ongoing commitment to<br />

maintaining Mule Creek Road on request of the<br />

community.<br />

<strong>Impact</strong> – Negative<br />

● Engagement with NT Government about potential road<br />

impacts may result in improved maintenance of the<br />

roads in the area<br />

● Engagement with local community and NT<br />

Government regarding road safety programs and<br />

initiatives may bring wider-spread benefits to ensure<br />

community safety outside of MRM truck operations.<br />

Threats<br />

● Increased truck movements may further damage roads<br />

which are already in poor condition.<br />

● No action to improve current status of the roads prior<br />

to potential Project commencement<br />

● Safety of all drivers using the roads.<br />

Accommodation and travel<br />

The severe housing shortage in Borroloola, together with concern about local MRM employees obtaining<br />

reliable transport to and from work, were raised as issues through consultation.<br />

While overcrowding and associated health and social problems were raised as general ongoing issues in<br />

the local area, there were particular areas of concern relating to accommodation for local people who<br />

work at the mine. Many spoke about local workers facing eviction or disproportionate rental increases<br />

from their public houses as a result of increased income levels; they indicated that with no other rental<br />

options available in the community, people faced issues with obtaining alternative accommodation or<br />

© Rowland 2012 Page 34


eing no longer eligible to receive public housing. Some also discussed that local workers experienced<br />

transport issues travelling to work each day, in that the daily bus currently in operation is designated only<br />

for trainees.<br />

‘Housing, overcrowding is a problem. Do you reckon you can build houses? We have to wait for<br />

another two years to get new houses here… can you build them faster than these other mob (the NT<br />

Government)?’<br />

Taken from Traditional Owner - Yanyuwa Group meeting held on 16 August 2011.<br />

‘A key issue, a main issue, is that people employed at the mine can’t use that income to buy their own<br />

house.'<br />

Taken from Borroloola Clinic meeting held on 28 July 2011.<br />

‘There is a bus…but that’s only for trainees. When they come off that they seem to be on their own.’<br />

Taken from Centrelink / ISA meeting held on 26 August 2011.<br />

Stakeholders and community members further discussed that local workers faced social issues when<br />

having to return home to live in overcrowded houses, including being persuaded to take part in drug and<br />

alcohol abuse, and being ‘humbugged’ for money or work.<br />

‘You know, there’s overcrowding and sometimes problems when local employees come back to town -<br />

maybe give them somewhere (to live) at the mine. You can see that some of them are trying hard to<br />

keep their jobs, but they get humbug from family with the extra money they bring back.’<br />

Taken from Savannah Way meeting held on 19 July 2011.<br />

‘There are people who get humbugged for the extra money.’<br />

Taken from Centrelink / ISA meeting held on 26 July 2011.<br />

Many expressed concern with a trend that young local MRM workers were relocating away from their<br />

local community to Darwin and taking up FIFO roles with MRM, which they felt removed them from their<br />

families and decreased the potential for long-term sustainability of future generations in the area.<br />

‘Then there’s the housing issue, when they get a job at the mine, they lose their house, and there’s<br />

nowhere to rent here, there’s no support for child care, no housing to rent, the incentives... it’s hard.<br />

That’s probably why they go to Darwin.’<br />

‘Land is an issue…land is tied up…it’s a merry go round, those people go away they spend their<br />

money in other places…can this place really get ahead?’<br />

Both quotes taken from Centrelink / ISA meeting held on 26 July 2011.<br />

Stakeholders and the community accepted that MRM was unable to directly undertake work to address<br />

the housing shortage in terms of constructing houses, and appreciated the challenges associated with<br />

land tenure issues currently being experienced in the area. However, community members indicated they<br />

would like to see MRM take a role in lobbying the government for assistance in resolving this issue.<br />

Others suggested MRM and its local employees may benefit from constructing a ‘single workers’ quarters’<br />

in the township, providing a safe, clean and local place to live.<br />

‘When miners come to town, they should have their own little units, and most of them are single.’<br />

Taken from Safe House meeting held on 20 July 2011.<br />

© Rowland 2012 Page 35


‘Is there any way that we could have a plan where employees of the mine, especially Indigenous ones,<br />

have facilities for them in Borroloola that are like work camps? Facilities for them to come back to so<br />

they can be comfortable in their own environment.’<br />

Taken from Mabunji Board meeting held on 3 August 2011.<br />

<strong>Impact</strong>s and opportunities — Regional development (Accommodation and travel)<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● Local employees on FIFO arrangements are avoiding<br />

the social issues of town, saving money and growing<br />

independence.<br />

<strong>Impact</strong> – Negative<br />

● Continue to address the housing issue with the NT<br />

Government and Local Government in developing a<br />

collaborative solution.<br />

● Consider provision of a daily bus service to Borroloola<br />

to assist local workers in ensuring safe transport to<br />

and from the work site.<br />

Threats<br />

● Potential for increasing local employment is<br />

compromised by issues associated with losing<br />

housing benefits, housing availability, overcrowding,<br />

humbugging, drug and alcohol abuse.<br />

● Allowing local workers to FIFO to Darwin potentially<br />

leading to broken family connections and<br />

connections to culture.<br />

● Australian and NT Government Strategic Indigenous<br />

Housing and Infrastructure Program is not due to<br />

provide any benefit to Borroloola and surrounds until<br />

at least 2014<br />

● Land tenure issues need to be resolved before land is<br />

released for private housing development.<br />

● Cost of building houses due to remote location makes<br />

development economically challenging.<br />

Other<br />

There were several other topics raised or issues discussed relating to regional development, particularly<br />

regarding health, accessibility and economic contribution.<br />

An issue facing health providers in the local area relates to providing flights for elderly patients from<br />

Borroloola to Darwin for treatment. Currently, the NT Government provides a private chartered flight,<br />

which must land at Katherine, thus requiring patients to make a further 5-hour bus trip to Darwin. This<br />

results in elderly patients suffering from tiredness and potentially increases the risk for further health<br />

complications. MRM identified an opportunity to work with the NT Government regarding assisting<br />

patients to fly directly from the MRM mine site to Darwin – a 1-hour flight which would provide increased<br />

comfort for patients.<br />

Many community members also expressed interest in the potential for further flights to be made available<br />

to locals from the MRM site, which was noted by MRM.<br />

In terms of economic contribution, local people were most interested in identifying business opportunities<br />

to be involved with the mine. This particularly related to supplying seeds and labour for rehabilitation<br />

works. The project team indicated being strongly open to looking at all opportunities to provide support to<br />

local businesses, and that the MRM Community Benefits Trust was well-placed to provide grants to<br />

suitable applicants interested in providing such services. MRM is nominating this as a key area of<br />

development focus post the EIS period.<br />

© Rowland 2012 Page 36


Many recognised that with the CDEP program due to end in 2012, there would be a requirement to<br />

ensure other businesses could grow in the area to ensure employment was sustained.<br />

‘The CDEP is going to close next year and we need something to go on. Like a business, so we can<br />

create work, jobs.’<br />

Taken from Robinson <strong>River</strong> meeting held on 10 August 2011.<br />

<strong>Impact</strong>s and opportunities — Regional Development (Other)<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● Increased requirement for goods and services,<br />

meaning local enterprise opportunities for suppliers<br />

may increase<br />

● Local business development may lessen the impact of<br />

CDEP cessation in 2012<br />

● Increased flights in and out of mine may mean<br />

somewhat increased accessibility for locals.<br />

<strong>Impact</strong> – Negative<br />

● Engagement with NT Government regarding flights for<br />

elderly patients may lead to an improved experience<br />

for patients<br />

● Identified enterprise creation opportunities provide<br />

potential for proactive consultation by Trust Project<br />

Officer and MRM administration team<br />

● Supporting local suppliers to partner with other<br />

businesses to deliver MRM requirements.<br />

● MRM support is able to be provided for local<br />

businesses seeking to supply the mine, particularly<br />

helping them to meet Xstrata plc supply<br />

requirements.<br />

Threats<br />

●<br />

● Local capacity for developing competitive small<br />

businesses to supply the quality required to meet<br />

mine requirements may be limited.<br />

● Flights into MRM are generally full with employers and<br />

contractors so flight accessibility may be limited.<br />

Environment and rehabilitation<br />

Environment and rehabilitation were two areas of interest that received comment throughout the<br />

consultation process, however did not receive as much interest as other topics such as employment, road<br />

condition and the MRM Community Benefits Trust.<br />

The topic of environment raised two key areas of interest for stakeholders and community members:<br />

1. Frequency and scope of monitoring<br />

2. Accessibility to monitoring results.<br />

Frequency and scope of monitoring<br />

During consultation, community members suggested that should the proposed Project go ahead, the<br />

frequency and scope of the current monitoring process needs to increase, specifically in relation to water<br />

testing at identified locations. Surprise Creek was highlighted as a key location where monitoring needs to<br />

© Rowland 2012 Page 37


e increased to ensure any impacts from the Phase 3 Development Project are captured early and<br />

addressed.<br />

“If the expansion continued, would there be an option to expand the water testing regime?”<br />

Taken from MRM CRG meeting held on 11 July 2011.<br />

Accessibility to monitoring results<br />

MRM’s current process for communicating monitoring results with stakeholders and community members<br />

was raised, with consultation revealing stakeholders and the community want more information, on a<br />

more regular basis. The topic of more transparency and greater access to monitoring results was<br />

common to a number of stakeholder groups, particularly the Traditional Owners as they felt information<br />

was not as readily available to them.<br />

“We request more transparency with monitoring results.”<br />

Taken from MRM CRG meeting held on 11th July 2011<br />

There was acknowledgment of the auditing that was being undertaken by the independent environmental<br />

monitor and the monitoring undertaken by the Australian Institute of Marine Science, and consultation<br />

revealed that community members were happy with this process as it demonstrated MRM’s ongoing<br />

commitment to effective environmental management.<br />

“I see people out doing the testing in the waters and that’s good. I come across every morning for work<br />

and I see them. That’s really good.”<br />

Taken from Safe House meeting held on 20 July 2011.<br />

Consultation also generated commentary regarding the rehabilitation of the <strong>McArthur</strong> <strong>River</strong>, with the<br />

majority of comments coming from the Elder Women who attended a site tour on 10 August 2011. Their<br />

comments were emotive as they saw the results of rehabilitation works along the banks of the river, and<br />

suggested ways to be involved in continuing to plant up the river banks. Signs of marine life (e.g. fish)<br />

also generated positive comments from the Elder Women.<br />

Further to this, the topic of rehabilitation generated three other key areas of interest, including:<br />

1. Future amenity of the OEF<br />

2. Involvement in rehabilitation (e.g. local procurement)<br />

3. Mine closure.<br />

Future amenity of the OEF<br />

The topic of the OEF will be discussed later in this section, however with regards to the rehabilitation of<br />

the facility and future amenity, this was raised as an area of concern as community members wanted to<br />

ensure the design was conducive to future planting. While there were very few issues raised regarding<br />

the current visual amenity of the OEF, consultation revealed community concern resided with the future<br />

amenity (or future look of the OEF) together with the future use of the facility.<br />

© Rowland 2012 Page 38


Involvement in rehabilitation<br />

Community involvement in the rehabilitation process was an area of interest for a number of<br />

stakeholders. Cultural connection to the land and local enterprise generation opportunities were key<br />

drivers for this interest.<br />

“Are there any nursery opportunities for the future?”<br />

Taken from general community meeting held 18 April 2011.<br />

“The Sea Rangers could be involved in the patrols, looking at the river systems, looking after the<br />

country. Could be an ongoing thing – gives pride and joy looking after this.”<br />

Taken from Traditional Owner - Yanyuwa Group meeting held 29 July 2011.<br />

This discussion was closely linked to the topics of employment, youth opportunities and cultural heritage,<br />

with involvement in the mine remaining a significant theme for many community members and<br />

stakeholders. MRM is nominating this as a key area of development focus post the EIS period.<br />

Mine closure<br />

The topic of mine closure was also raised in relation to rehabilitation works. More specifically, community<br />

members were interested to learn what responsibilities MRM has to rehabilitate the area after the closure<br />

of the mine. The consultation process encouraged community members to highlight their own thoughts on<br />

the future use of the site following the mine closure, with some community members confirming their<br />

preference for the site to ultimately return to cattle country.<br />

In terms of rehabilitation, it was unanimous that stakeholders and community members believed it was<br />

MRM’s responsibility to rehabilitate the country once the mine was closed.<br />

“It is the responsibility of the mining companies to rehabilitate country.”<br />

Taken from Mabunji Board meeting held on 3 August 2011.<br />

<strong>Impact</strong>s and opportunities — Environment and rehabilitation<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

●<br />

● Greater understanding of monitoring results by<br />

community and key stakeholders.<br />

● Increase Traditional Owner (Gurdanji) involvement in<br />

the rehabilitation process<br />

● Involve local businesses in the rehabilitation and<br />

monitoring process e.g. Sea Rangers<br />

● Improve relationships with community through more<br />

information giving and sharing.<br />

● Desire for greater water monitoring and for these<br />

results to be shared<br />

© Rowland 2012 Page 39


<strong>Impact</strong> – Negative<br />

Threats<br />

● Technical expertise required to undertake some<br />

monitoring processes/procedures.<br />

Tailings Storage Facility<br />

Consultation regarding the TSF was a specific area of discussion in line with the Terms of Reference for<br />

the EIS. However, results indicate that this topic, while important and thoroughly discussed, was not as<br />

widely raised as other areas of interest, such as local youth employment and the condition of the roads in<br />

the region.<br />

The key areas of discussion regarding the TSF were in relation to the management and mitigation of<br />

seepage into Surprise Creek, the monitoring of Surprise Creek, and the potential increase in size to the<br />

TSF.<br />

There were some comments received that indicated a level of community interest/concern regarding the<br />

TSF, its design, and current/future impacts on the surrounding environment, specifically Surprise Creek.<br />

These comments were in relation to seepage and water testing and monitoring.<br />

“When you do the mining, does anything go back into the river?”<br />

Taken from King Ash Bay meeting held on 26 July 2011.<br />

“Will the expansion increase the number of tailings? If yes, there needs to be more testing done.”<br />

Taken from MRM CRG meeting held on 11 July 2011.<br />

These comments indicated to the consultation team that community members still did not fully understand<br />

the role of the TSF. Where this was the case, to ensure clarity for the community, the team took the time<br />

to go through the TSF factsheet and answer questions with as much detail as possible to increase their<br />

knowledge and understanding.<br />

There were other comments made in relation to the TSF which suggested a degree of contentment with<br />

the current facility, together with comments made in relation to the project as a whole.<br />

“The TSF had no issues during the substantial 2010/2011 wet season and we feel pretty safe with it.”<br />

Taken from Government site tour on 2 August 2011.<br />

“If the size of the project doesn’t impact o the environment, it is fine.”<br />

Taken from MRM CRG meeting held on 11 July 2011.<br />

It was clear from these comments that although the community was still concerned about the existence of<br />

the TSF and its impact on their country, there was acknowledgment of the current management and<br />

monitoring strategies in place to address their concerns. It was also clear through the consultation<br />

process that community members wanted to be kept informed of monitoring results throughout the life of<br />

the mine.<br />

© Rowland 2012 Page 40


The consultation team did raise other potential areas of interest in relation to the TSF, including visual<br />

amenity and the impact this currently has (and may potentially have) on community members, however<br />

consultation results indicate these were not areas of particular concern.<br />

<strong>Impact</strong>s and opportunities — Tailings Storage Facility<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● Acknowledgment of the current management<br />

strategies to mitigate TSF seepage into Surprise<br />

Creek<br />

● Acknowledgment of the design of the TSF to withstand<br />

the wet season.<br />

<strong>Impact</strong> – Negative<br />

● Increase communication regarding water testing and<br />

monitoring<br />

● Review the rehabilitation process and involve<br />

community members where possible and<br />

appropriate.<br />

Threats<br />

● Seepage into Surprise Creek<br />

● Flow on effects the seepage has downstream<br />

● <strong>Impact</strong> seepage into Surprise Creek has had on flora<br />

and fauna.<br />

● Misunderstanding of the role and function of the TSF.<br />

Overburden Emplacement Facility<br />

As with the TSF, the OEF was a particular topic requiring consultation with the community through the<br />

EIS drafting period, particularly relating to its visual amenity (as required by the NT Government in its EIS<br />

Guidelines).<br />

Advice was provided by the project team that the OEF may be built higher than its current height of 40 m<br />

(though not higher than the pre-approved height of 80 m), and direct questioning occurred about the<br />

community’s thoughts and concerns on this. The majority of those who took part in consultation did not<br />

raise any concerns or issues about the OEF.<br />

Several questions were asked relating to how the OEF worked, what it would look like during the mine life<br />

and treatments intended to be applied following mine closure. This signalled there was a level of interest<br />

in the OEF generally, and indicated there had not previously been a high level of awareness about this<br />

aspect of the mine’s operation.<br />

While there were very few issues raised regarding the visual amenity of the site, a small number (1 – 2)<br />

commented the current OEF and potential for extra overburden would be unattractive to look at.<br />

‘The expectation is that it’ll be an eyesore, not necessarily a good thing for the area.’<br />

Taken from Borroloola Health Clinic meeting held on 28 July 2011 .<br />

‘You can see (the OEF) a little now, but there’s nothing you can do about it. It’s a sight for sore eyes.’<br />

Taken from Traditional Owner - Yanyuwa Group meeting held on 28 July 2011.<br />

There was, however, an indication that stakeholders understood the OEF was a requirement of the<br />

mining process.<br />

© Rowland 2012 Page 41


There was also further interest shown regarding the preferred design for the OEF, specifically relating to<br />

the project decision to construct the OEF higher rather than wider. The project team took the opportunity<br />

to discuss that it was preferable to take the OEF higher than wider so as to reduce the footprint and<br />

environmental impact. The design choice struck a balance between minimising environmental impact,<br />

while minimising impacts to visual amenity at the location. The community were assured the OEF would<br />

not be taken higher than the previously approved height of 80 metres, in line with the height of<br />

‘Barramundi Dreaming’ (a site of cultural significance), and did not indicate any issues relating to this<br />

design decision.<br />

The project team also discussed the long-term plans for the OEF, advising that the mine closure and<br />

rehabilitation plans were designed to ensure the OEF would eventually blend in with the surrounding<br />

environment post-life of mine. Stakeholders indicated they understood the mine closure plans in relation<br />

to the OEF. In line with other comments relating to rehabilitation, there was interest in ongoing<br />

community involvement in this work.<br />

<strong>Impact</strong>s and opportunities — Overburden Emplacement Facility<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● Understanding of the role of the OEF in mine<br />

operations<br />

● Recognising the mine would work within approvals to<br />

ensure the OEF would be not be constructed higher<br />

than a site of cultural significance.<br />

<strong>Impact</strong> – Negative<br />

● Involve community in ongoing and mine closure<br />

rehabilitation of the OEF where possible<br />

● Conduct site tours to show community progress of the<br />

OEF construction and rehabilitation<br />

● Educate the community about how the OEF works, its<br />

design and rehabilitation.<br />

Threats<br />

● Visual amenity of the OEF during mine operations.<br />

Cultural Heritage<br />

Cultural heritage was an area of interest across a number of stakeholder groups, in particular, the<br />

process of how MRM would identify and preserve sacred sites (or sites of cultural significance)<br />

throughout the EIS process and beyond. Specific reference was made to Barramundi Dreaming as a<br />

place of cultural significance and a sacred area that needed to be protected from any impact. There was<br />

also discussion surrounding the TSF and OEF and their potential impact on sacred sites, with questions<br />

raised on how the design of these facilities would be developed to mitigate any impacts (discussed in TSF<br />

and OEF sections above).<br />

Community members acknowledged the work MRM had done to date in terms of sacred site identification<br />

and protection, however they expressed their concerns regarding the size of the Project and the potential<br />

impact it could have on these sites. There was a strong need for the project team to clearly demonstrate<br />

and articulate their cultural heritage management processes to confirm sacred sites would not be<br />

impacted.<br />

© Rowland 2012 Page 42


“How will MRM protect and identify sacred sites on the mine throughout the Phase 3<br />

Development Project?”<br />

Taken from general community meeting held on 23 March 2011.<br />

“You need to look out for Barramundi Dreaming. There is a spring there – you have to look after it.”<br />

Taken from Traditional Owner - Gurdanji Group meeting held on 16 August 2011.<br />

In response to these comments, MRM provided stakeholders information on the 17 sites of cultural<br />

significance which have been previously identified by Traditional Owners, archaeologists and the<br />

Aboriginal Area Protection Authority. These sites are protected by MRM.<br />

In moving forward, there was acknowledgement from community members that any new sites of cultural<br />

significance would be protected under MRM’s Cultural Heritage Management Plan, which followed<br />

MRM’s Cultural Recognition Policy.<br />

Involvement in cultural heritage or caring for country was another topic discussed in detail during the<br />

consultation phase. Community members expressed their keen interest in being involved in cultural<br />

heritage management activities, and saw the Phase 3 Development Project as an opportunity to action<br />

this involvement.<br />

“We are fine with cultural heritage and sacred sites, so long as Traditional Owners are<br />

working with MRM.”<br />

Taken from Traditional Owner - Yanyuwa Group meeting held on 29 July 2011.<br />

It was clear from the consultation that caring for country was very important – both culturally and<br />

spiritually – for community members as it provided an opportunity to be ‘hands on’ with their country and<br />

share stories with the younger generation. Consultation revealed that ongoing involvement in cultural<br />

heritage management was very important to the community.<br />

“It will have a positive impact – it will support Traditional Owners to look after country, maintain cultural<br />

ties, and it will be a step in the right direction moving forward.”<br />

Taken from Government site tour held on 2 August 2011.<br />

<strong>Impact</strong>s and opportunities — Cultural Heritage<br />

<strong>Impact</strong> – Positive<br />

● Sacred sites/sites of cultural significance are identified<br />

and protected<br />

● Phase 3 Development Project does not impact on any<br />

sacred sites or sites of cultural significance.<br />

● Community members given access to sacred<br />

sites/sites of cultural significance.<br />

<strong>Impact</strong> – Negative<br />

● Potential impact on sacred site or site or cultural<br />

significance around the TSF or OEF raised by the<br />

community.<br />

Opportunity<br />

● Community members to become more involved in<br />

cultural heritage management activities<br />

● The Phase 3 Development Project provides an<br />

opportunity to increase cultural heritage knowledge<br />

among MRM staff through a continuation of Cultural<br />

Awareness Training.<br />

Threats<br />

● Proximity of Project infrastructure to sites of cultural<br />

significance.<br />

© Rowland 2012 Page 43


Bing Bong<br />

Consultation was undertaken across all stakeholders and members of the community to ascertain<br />

potential concerns about an increase in barge movements in the Bing Bong area, and understand other<br />

issues associated with loading and shipping activities.<br />

While many stakeholders were interested in environmental management and results within the area,<br />

there were no concerns raised about proposed additional barge movements, indicating this was an area<br />

of low interest for stakeholders. Of environmental management, stakeholders were generally interested<br />

to know about monitoring results, with specific concern raised regarding the dredging spoils area, oyster<br />

and mangrove health.<br />

‘What about the black stinking mud at Bing Bong – it seems to be spreading, the weeds look like<br />

they’re spreading as well, but it may have something to do with less cattle being there these days. I<br />

lived there 30-odd years ago, and it seems to be coming across further. I’ve noticed the changes, but it<br />

may be less cattle, the stopping of dog baiting.’<br />

Taken from general community and local services meeting held on 21 July 2011.<br />

‘Do you do any testing of them mangroves? Need more tests on the oysters.’<br />

Taken from Women’s site tour held on 10 August 2011.<br />

‘I reckon the mine should do heavy metal testing on turtles and look at the health of sea animals.’<br />

Taken from Borroloola Clinic meeting held on 28 July 2011<br />

The project team provided stakeholders with detail about annual marine monitoring conducted by the<br />

Australian Institute of Marine Science, however, it was identified that further proactive steps could be<br />

taken to educate the community and stakeholders about environmental management outcomes.<br />

Stakeholders raised concern about the condition of the road leading to Bing Bong (discussed in ‘traffic<br />

and roads’ section above), and were interested to know whether employment opportunities existed in the<br />

barge area. The project team advised the Aburri barge and transhipment services are managed by<br />

Carpentaria Shipping Services, and queries about employment should be directed to MAWA, one of the<br />

shareholders in the company.<br />

The majority of stakeholders expressed they had no concerns about proposed additional barge<br />

movements.<br />

‘(Ship loading) is a far way out…. No local people go out that far anyway.’<br />

Taken from Women’s site tour held on 10 August 2011.<br />

© Rowland 2012 Page 44


<strong>Impact</strong>s and opportunities — Bing Bong<br />

<strong>Impact</strong> – Positive<br />

●<br />

<strong>Impact</strong> – Negative<br />

● Concern about management of dredge spoils<br />

● Concern about environmental impact of loading on<br />

marine animals and mangroves.<br />

Opportunity<br />

● Proactive communication about environmental<br />

management outcomes in the Bing Bong area will<br />

help to increase awareness and understanding about<br />

health of marine life.<br />

Threats<br />

Lack of awareness about monitoring programs and<br />

results in the Bing Bong area.<br />

Project – General<br />

The consultation process for the proposed project encouraged stakeholders and community members to<br />

raise their questions, concerns, benefits and opportunities to be official captured and documented. The<br />

majority of the discussions centred around the topics of interest including the TSF, OEF, environment and<br />

rehabilitation, regional development, cultural heritage, Bing Bong and employment, however there was<br />

some feedback and discussion that did not fit under these topics – these have been captured in this<br />

section.<br />

Broadly, there was genuine interest in and support for the Project, MRM currently, and the consultation<br />

process being undertaken.<br />

“The impact of the project would be positive for the town. There would be more jobs, the Trust, there<br />

would be more work. The Trust helps kids outs. The mine is generally good for the area.”<br />

Taken from Cairns Industries meeting held on 29 July 2011.<br />

“I have attended the previous community consultations and the level of information being provided has<br />

been good. I’ve only heard positive feedback and comments with regard to the expansion...the feeling<br />

is that there is something for everybody and that everyone will be better off.”<br />

“Am I happy with the mine? My son is doing very well at MRM. He left school and is now doing an<br />

apprenticeship. You can’t get better than that!”<br />

Both quotes taken from general community and local services meeting held on 21 July 2011.<br />

There were lots of other opportunities, suggestions and ideas put forward by stakeholders and community<br />

members on what they perceived was needed to ensure the Project delivered benefits to them and their<br />

family/community:<br />

“What about a crèche to ensure children are looked after?”<br />

“It would be positive to have improved liaison with the mine, to manage people’s expectations and help<br />

get people job ready.”<br />

Both quotes taken from Centrelink / ISA meeting held on 26 July 2011.<br />

There was also a general theme which became apparent as the consultation progressed, and that was<br />

the community members’ desire to have more contact with MRM representatives. There was positive<br />

© Rowland 2012 Page 45


feedback on the role of the Senior Community Relations Advisor and their work/contact in Borroloola.<br />

Having access to mine representatives to talk to/ask questions is important.<br />

“Community engagement with us locals at Borroloola is important for MRM, and it would be good to<br />

have a full-time local MRM representative in the Borroloola MRM office to assist providing<br />

information...”<br />

Taken from Savannah Way Motel meeting held on 19 July 2011.<br />

“It is good Ettienne is talking with us now. Jane [Trust Project Officer] also comes around and talks with<br />

us.”<br />

Taken from Traditional Owner - Garrawa Group meeting held on 18 August 2011.<br />

<strong>Impact</strong>s and opportunities — Project – General<br />

<strong>Impact</strong> – Positive<br />

Opportunity<br />

● Local employment opportunities.<br />

● Local business / enterprise opportunities.<br />

<strong>Impact</strong> – Negative<br />

● Increase face-to-face contact with community<br />

members.<br />

● Guidance to small businesses on partnering with<br />

others to become MRM suppliers.<br />

● Consider the current contract arrangements and<br />

opportunities that could be provided as the<br />

community of Borroloola expands through the NT<br />

Growth Towns Strategy<br />

Threats<br />

●<br />

© Rowland 2012 Page 46


Appendix 1<br />

Appendix 1: Consultation plan


<strong>McArthur</strong> <strong>River</strong> Mine<br />

Phase 3 Development Project<br />

Environmental <strong>Impact</strong> <strong>Assessment</strong><br />

Stakeholder Engagement Plan<br />

March – September 2011


Glossary<br />

Contents<br />

Contents ....................................................................................................................................................... 2<br />

Glossary........................................................................................................................................................ 4<br />

1 Introduction ....................................................................................................................................... 5<br />

1.1 Project overview ........................................................................................................................... 5<br />

1.2 Project and communication context ............................................................................................. 5<br />

1.3 Project scope ................................................................................................................................ 6<br />

1.4 Location ........................................................................................................................................ 6<br />

2 Purpose, Goal and Objectives .......................................................................................................... 8<br />

2.1 Purpose of Stakeholder Engagement Plan .................................................................................. 8<br />

2.2 Goal .............................................................................................................................................. 8<br />

2.3 Objectives ..................................................................................................................................... 8<br />

3 Roles and responsibilities ............................................................................................................... 10<br />

4 Communication principles .............................................................................................................. 12<br />

Xstrata Zinc Worldwide Guidelines for Stakeholder Engagement .......................................................... 12<br />

4.1 Industry best practice approach ................................................................................................. 13<br />

5 Approach ........................................................................................................................................ 16<br />

5.1 Planning Considerations ............................................................................................................. 16<br />

5.1.1 Stakeholder perspectives and drivers .................................................................................... 16<br />

5.1.2 MRM 360 Degree Survey results ........................................................................................... 17<br />

5.1.3 Phase 2 Development – expansion history ............................................................................ 19<br />

5.1.4 Environmental issues – including known issues .................................................................... 19<br />

EIS timeframe and milestones ......................................................................................................... 21<br />

5.2 Consultation Method ................................................................................................................... 21<br />

5.3 Communication Tools and Activities .......................................................................................... 23<br />

5.4 Stakeholder Engagement Strategy Overview ............................................................................ 25<br />

6 Key Messages ................................................................................................................................ 26<br />

1. This development builds on the success of the conversion to open pit mining. ............................ 26<br />

2. This development secures a new market for MRM bulk concentrate and the future of the mine. . 27<br />

3. There would be no change to the <strong>McArthur</strong> <strong>River</strong> channel. ........................................................... 28<br />

7 Project Q&As .................................................................................................................................. 29<br />

Stakeholder engagement ........................................................................................................................ 29<br />

Planning .................................................................................................................................................. 29<br />

Issues ...................................................................................................................................................... 31<br />

8 Stakeholder and Issues Identification ............................................................................................. 32<br />

8.1 Issues classification .................................................................................................................... 32<br />

8.2 Stakeholders ............................................................................................................................... 34<br />

9 Issues Management ....................................................................................................................... 35<br />

10 Media Management ........................................................................................................................ 36<br />

10.1 Media policy ................................................................................................................................ 36<br />

Phase 3 Development Project ----- <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong><br />

2


10.2 Standard script for media enquiries ............................................................................................ 36<br />

11 Project Controls .............................................................................................................................. 38<br />

11.1 Recording consultation and community feedback ...................................................................... 38<br />

11.2 Reporting consultation findings .................................................................................................. 38<br />

12 Evaluation ....................................................................................................................................... 39<br />

© Rowland 2012 Page 3


Glossary<br />

Glossary<br />

Term<br />

Definition<br />

EIS<br />

Environmental <strong>Impact</strong> Statement<br />

FIFO Fly-in fly-out<br />

IAP2 International Association for Public<br />

Participation<br />

MRM <strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

NT<br />

Northern Territory<br />

OEF Overburden Emplacement Facility<br />

SEP Stakeholder Engagement Plan<br />

SIA <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong><br />

The Project The proposed MRM Phase 3<br />

Development Project<br />

TO<br />

Traditional Owner<br />

TSF Tailings Storage Facility<br />

© Rowland 2012 Page 4


Glossary<br />

1 Introduction<br />

1.1 Project overview<br />

Xstrata Zinc is completing an Environmental <strong>Impact</strong> Statement (EIS) for the proposed <strong>McArthur</strong> <strong>River</strong><br />

Mine, which will involve increasing bulk concentrate production using ore extracted from an expanded<br />

open pit mining operation.<br />

Development of the mine builds on works completed in 2009 to convert the <strong>McArthur</strong> <strong>River</strong> Mine (MRM)<br />

from underground to open pit operations.<br />

During 2010, a scoping study was conducted to assess the potential expansion which would increase the<br />

mine’s production rate to approximately 5 million tonnes per annum, expanding the life of mine from 2027<br />

to 2033.<br />

The EIS phase of the project is now underway to determine options and explore mitigation of potential<br />

environmental aspects associated with the following operational requirements:<br />

● Expanded open pit mining<br />

● Overburden Emplacement Facilities (OEF)<br />

● Water management<br />

● Tailing Storage Facility (TSF) upgrade<br />

● Processing plant<br />

● Power supply<br />

● Building a temporary construction camp and extension to the existing accommodation facility.<br />

1.2 Project and communication context<br />

MRM, wholly owned by Xstrata Zinc, is one of the world’s largest providers of zinc in ‘bulk concentrate’<br />

form, containing zinc and lead. In 2010, the mine produced 2.2 million tonnes of ore and 384,000 dry<br />

metric tonnes of bulk zinc / lead concentrate.<br />

Communication and consultation activities will be carried out taking into account the mine’s wellestablished<br />

and functional communication channels which are benchmarked by the Xstrata Zinc<br />

Guidelines for Stakeholder Engagement under the Xstrata Zinc Sustainable Development framework.<br />

Further development of the mine is now imperative due to two drivers:<br />

1. Changes in the smelter market, requiring Xstrata Zinc to seek a new market for their bulk concentrate<br />

product.<br />

2. A newly identified opportunity to develop MRM as part of an integrated plan involving Xstrata Zinc’s<br />

European Smelters and the Canadian Lead Smelter.<br />

The project has now reached EIS phase. The Notice of Intent (NOI) was lodged on 11 March 2011. This<br />

will be followed by a thorough consultation and community engagement process, with the EIS expected to<br />

be submitted late 2011.<br />

© Rowland 2012 Page 5


The NT Government EIS Guidelines have provided detailed information about expectations and<br />

requirements for the consultation aspect of EIS preparation. This consultation plan has been prepared to<br />

ensure the Guideline requirements are met.<br />

1.3 Project scope<br />

Current information and testing indicates that the ore body can support and achieve better resource<br />

utilisation through a large-scale project. It is envisaged that the expanded pit will be developed in stages<br />

with the current open pit mine being expanded to a total annual capacity of approximately 5 million tonnes<br />

(Mt) of ore mined and 800,000 tonnes (t) of bulk zinc / silver / lead concentrate produced.<br />

The estimated project development cost is AU$270 million.<br />

Key project features include:<br />

● Expanding the existing open pit mining operation within the bund through an expanded fleet of<br />

conventional shovels / excavators and large haul trucks<br />

● Increasing the capacity of the existing Tailings Storage Facility (TSF)<br />

● Generating approximately 500 million tonnes of additional waste rock to be sent to overburden<br />

emplacement facilities (OEF)<br />

● Upgrading the processing plant<br />

● Expanding the power station requirements at the mine site<br />

● Building a temporary construction camp and expanding the existing accommodation facilities<br />

● Increasing MRM’s mineable reserves from 53 million tonnes to 115 million tonnes, extending the life of<br />

mine to 2033 at the proposed higher rate of production.<br />

A scoping study conducted in 2010 has confirmed the development project would not expand the open pit<br />

beyond the current boundary of the bund wall and there is no requirement for further diversions to the<br />

<strong>McArthur</strong> <strong>River</strong> or Barney Creek channels.<br />

1.4 Location<br />

MRM is located in the Northern Territory (NT), approximately half-way between Darwin and Mount Isa.<br />

The mine is around 60km south-west of the township of Borroloola, 120km south of the Bing Bong<br />

loading facility on the Gulf of Carpentaria and 900 km south-east of Darwin in the Gulf Region of the NT.<br />

© Rowland 2012 Page 6


Figure 1 shows the location of MRM and associated facilities:<br />

© Rowland 2012 Page 7


Glossary<br />

2 Purpose, Goal and Objectives<br />

2.1 Purpose of Stakeholder Engagement Plan<br />

The Phase 3 Development Project Stakeholder Engagement Plan (the Plan or SEP) provides an<br />

overview of communication and consultation activities to be undertaken during the drafting of the EIS for<br />

<strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong> (MRM) .<br />

Stakeholder consultation is essential for the successful development of the Project, and will be a key<br />

element in assessing the Project’s potential impacts on and benefit to the community. This will take into<br />

consideration opportunities for socio-economic development based on the needs and aspirations of the<br />

people within the Gulf region.<br />

The Plan will outline how EIS stakeholder engagement objectives will be approached and met, including:<br />

● identifying stakeholders and members of the public who must be informed of the proposed project and<br />

the EIS process<br />

● communication methods and tactics<br />

● recording and analysis of stakeholder interactions<br />

● reporting of stakeholder interaction outcomes<br />

● evaluation of stakeholder consultation effectiveness.<br />

As a result of implementing this Plan:<br />

● The EIS chapter including the <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> (SIA) and the Consultation Report will be<br />

developed and produced, along with an adapted Stakeholder Engagement Plan which draws on<br />

learnings during consultation.<br />

2.2 Goal<br />

The goal of the consultation plan is to achieve open, equitable, all-inclusive and comprehensive<br />

engagement and consultation with the community and key stakeholders.<br />

2.3 Objectives<br />

At a high level, the EIS communication and stakeholder consultation objectives are to:<br />

● Involve as many people as possible in the engagement and consultation process<br />

● Help inform decision making on the project to clearly address concerns<br />

● Collaborate with the community to look at ways to reduce identified project risks and enhance benefits<br />

and opportunities<br />

● Inform strategies to develop effective partnerships with local business to achieve economic outcomes<br />

for the region.<br />

© Rowland 2012 Page 8


During the EIS phase, communication and stakeholder consultation objectives will ensure:<br />

● Stakeholders are aware and accurately informed about:<br />

○ the proposed project – what to expect during construction and long-term operation<br />

○ why the project is required<br />

○ potential benefits and impacts of the project to the community<br />

○ Monitoring and environmental issue mitigation strategies<br />

○ The EIS period – how to contribute<br />

○ The consultation process through MRM’s submitted EIS.<br />

● Stakeholders are proactively provided with opportunities to ask questions, provide input and receive<br />

answers throughout the EIS process<br />

● Stakeholders and MRM work together to identify and address issues in a timely manner<br />

● All questions are answered and feedback is considered in EIS submission<br />

● MRM fosters positive relationships conducive to open, two-way communication with stakeholders<br />

● MRM develops sustainable communities.<br />

© Rowland 2012 Page 9


3 Roles and responsibilities<br />

Xstrata Zinc has engaged MetServe to conduct the EIA and produce the EIS, and Rowland to produce<br />

the appropriate outcomes for the EIS relating to the <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> (SIA) and stakeholder<br />

consultation.<br />

Figure 2 details roles and responsibilities of key project communication staff:<br />

Name Role on project Responsibilities<br />

Drew Herbert<br />

Xstrata Zinc<br />

Joanne Pafumi<br />

Fran Rossberg<br />

Xstrata Zinc<br />

Project Manager<br />

Advisors – SIA &<br />

Consultation<br />

● Project manager<br />

● Manage EIS process<br />

● Oversee development of SIA<br />

● Oversee communication and consultation activities<br />

● Review and approve key consultation strategies and<br />

materials<br />

● Provide direction for ‘on-the-ground’ MRM consultation<br />

team<br />

Ettienne Moller<br />

MRM<br />

Vicky Nangala<br />

Creative Options<br />

Amanda Wild<br />

Director – Stakeholder<br />

Engagement<br />

Rowland<br />

Holly Williamson<br />

Manager –<br />

Stakeholder<br />

Engagement<br />

Rowland<br />

Jessica Bogaart<br />

General Manager<br />

‘On-the-ground’ Community<br />

Liaison Officer<br />

SIA and Consultation Plan<br />

Director<br />

SIA and Consultation Plan<br />

Manager<br />

SIA and Consultation Plan<br />

● Attend and speak one-on-one consultation meetings<br />

● Project spokesperson<br />

● Provide assistance in obtaining responses to consultation<br />

issues<br />

● Manage and conduct ‘on-the-ground’ consultation<br />

● Provide accurate notes and records of stakeholder<br />

contact for Rowland<br />

● Provide timely response to communication queries<br />

● Provide input for drafting of Consultation Plan<br />

● Inform Rowland team of progress and issues<br />

● Support analysis of consultation results<br />

● Provide assistance in obtaining responses to consultation<br />

issues<br />

● Oversee, draft and manage SIA and Consultation Plan<br />

strategy and implementation<br />

● Develop and produce consultation materials, e.g. fact<br />

sheets<br />

● Manage and analyse consultation results<br />

● Coordinate responses to consultation issues<br />

● Input consultation notes to Consultation Manager (CMS)<br />

● Coordinate consultation activities during delivery of plan<br />

© Rowland 2012 Page 10


Name Role on project Responsibilities<br />

Coordinator<br />

Rowland<br />

Consultant<br />

© Rowland 2012 Page 11


Glossary<br />

4 Communication principles<br />

Stakeholder consultation is an essential element in the EIS process. From the Project perspective, it<br />

ensures an open, all-inclusive, equitable and comprehensive approach to information sharing and<br />

feedback gathering, with results contributing (as appropriate) to the design of the project. It also provides<br />

communities and key stakeholders with ownership over proposed projects that will impact them in some<br />

way.<br />

The goal of the community and stakeholder consultation conducted during this period is to facilitate the<br />

sharing of information and encouragement of community feedback with a view to engaging and<br />

collaborating with identified community members and key stakeholders during the EIS process.<br />

As part of the EIS process, EIS guidelines have been developed by the NT Government’s Department of<br />

Natural Resources, Environment, The Arts and Sport. Rowland will ensure specific consultation<br />

requirements are addressed in our methodology.<br />

The Guidelines require the following in regard to consultation:<br />

● Demonstrate that stakeholders have been consulted on the size, location and visual impacts<br />

associated with the proposed project<br />

● Describe the broader social impacts the project is expected to have to the local community, including<br />

positive and negative impacts that may arise from the project and additional time to the life of mine<br />

● Provide information about impacts that additional road and sea transport may have on the community<br />

and consult with local communities potentially affected by these impacts<br />

● Detail to the community local employment programs currently in place, and whether programs will be<br />

expanded in line with the proposed project<br />

● Community liaison and consultation is to include identification of, and ongoing consultation with,<br />

stakeholder groups to ensure the full range of community viewpoints are sought and considered.<br />

MRM is to outline its current and proposed methods for community consultation, including how it will<br />

respond to community feedback, questions and concerns in a formal, publicly accessible<br />

communication plan for the project<br />

● Consultation must identify and discuss expected regional, Territory or national benefits and costs<br />

associated with the proposed project, including those than cannot be adequately described in<br />

monetary or physical terms, such as effects on cultural and aesthetic amenity in the short and long<br />

term<br />

● Public concerns with the proposed project must be identified, and the EIS must show how concerns<br />

will influence the design and delivery of the proposal.<br />

Xstrata Zinc Worldwide Guidelines for Stakeholder Engagement<br />

Xstrata Zinc’s Sustainable Development Framework, specifically Section 12 – Stakeholder Engagement<br />

Guidelines, will be referenced during this consultation period, and will continue to be a key document<br />

influencing the ongoing delivery of community and stakeholder engagement. This document outlines<br />

Xstrata Zinc’s approach to best practice consultation and engagement, and provides a solid foundation<br />

for baseline requirements.<br />

© Rowland 2012 Page 12


Xstrata believes stakeholder engagement provides a framework to successfully manage challenges, find<br />

innovative solutions and to preserve the social license to operate.<br />

Overarching objectives of effective stakeholder engagement include:<br />

● Support lasting improvement in the quality of life of the communities in the mining areas and<br />

operations.<br />

● Facilitate community empowerment through participatory development processes build local<br />

capacities and development resources.<br />

● Foster constructive working relationships among Xstrata Zinc, communities and governments.<br />

The main principles guiding Xstrata Zinc’s stakeholder engagement conduct include:<br />

● Uphold and promote human rights.<br />

● Respect culture and heritage of communities as defined within local, national and international laws.<br />

● Adopt a strategic approach of social impacts and risks of Xstrata Zinc’s activities and concerns and<br />

needs of existing and future communities through overall stages of projects.<br />

● Develop engagement with all communities within operation’s area, prioritising vulnerable groups.<br />

● Enhance the social and economic competence and well-being of the communities involved with<br />

Xstrata Zinc’s operations, avoiding dependency and promoting the sustainable development of<br />

business.<br />

4.1 Industry best practice approach<br />

The International Association for Public Participation (IAP2) is an internationally recognised organisation<br />

that seeks to promote and improve the practice of public participation in relation to individuals,<br />

governments, institutions, and other entities that affect the public interest.<br />

The IAP2 approach to consultation, informed by their core values, is considered best practice<br />

consultation.<br />

The IAP2 has developed a public participation spectrum to demonstrate the levels of public participation<br />

available as part of a project’s stakeholder engagement approach. The spectrum demonstrates that the<br />

differing levels of participation are legitimate depending on the goals, timeframes, resources and level of<br />

concern in the decision to be made.<br />

The model shows increasing levels of participation as stakeholder engagement activities move from<br />

inform to consult, involve, collaborate and finally empower.<br />

The IAP2 model will be used to influence MRM’s stakeholder engagement activities during consultation<br />

about the Phase 3 Development Project. Consultation activities will primarily focus on the ‘inform, consult<br />

and involve’ levels, with some aspects of ‘collaboration’ and ‘empowerment’ to be used where appropriate<br />

later in the consultation period.<br />

Table 3: Consultation team principles<br />

Principle<br />

Description<br />

© Rowland 2012 Page 13


Principle<br />

Comprehensive<br />

All-inclusive<br />

Equitable<br />

Thorough<br />

Description<br />

Thorough in subject matter, covering all generic areas of study expected under an SIA as well<br />

as all specific matters relevant to the design, planning and potential execution of the Phase 3<br />

Development Project.<br />

Recognising the diversity of interests within the Gulf Region: Indigenous and non-Indigenous,<br />

residents and businesses, local, Territory and Australian Government and a range of<br />

organisations with an influence and interest in the future growth of the region. It also ensures<br />

that two-way communication is encouraged with both those who take a high profile and have<br />

prominent positions and community members with traditionally quiet voices.<br />

Providing a range of methods for engaging with the diverse range of stakeholders to ensure all<br />

have equitable access and opportunity to be heard. This included ensuring stakeholders have<br />

ample opportunities to be informed about the Project and EIS, and to ask questions and<br />

receive answers.<br />

Disciplined approach to conducting meetings, capturing feedback and reporting the outcomes<br />

within an effective management system to ensure all responses are accurately reported. This<br />

will be important to ensuring the trusted relationship with MRM as a primary source of<br />

information and the feedback conduit in the EIS is maintained.<br />

The Minerals Council of Australia (MCA) Socioeconomic Benefits and <strong>Impact</strong>s: an assessment and<br />

planning toolkit will also be used to collate the consultation findings into the SIA.<br />

© Rowland 2012 Page 14


© Rowland 2012 Page 15


5 Approach<br />

5.1 Planning Considerations<br />

The following diagram represents various inputs considered in planning stakeholder engagement and<br />

communication activities for the Phase 3 Development Project EIS. Figure 5 shows variables that may<br />

have an impact on the communication objectives and strategy:<br />

MRM<br />

operational<br />

consultation<br />

and<br />

communication<br />

activities<br />

Stakeholder<br />

perspectives<br />

and drivers<br />

MRM Phase 2<br />

Development<br />

project history<br />

Xstrata<br />

Sustainable<br />

Development -<br />

Standard 12:<br />

Stakeholder<br />

Engagement<br />

Phase 3 EIS<br />

stakeholder<br />

consultation<br />

approach<br />

Environmental<br />

issues –<br />

including<br />

known issues<br />

NT<br />

Government<br />

EIS Guidelines<br />

Federal and<br />

NT<br />

Government<br />

requirements<br />

EIS timeframe<br />

and milestones<br />

MRM 360<br />

Degree Survey<br />

results<br />

5.1.1 Stakeholder perspectives and drivers<br />

A stakeholder and issues matrix is included as part of this document at Section 9.3. This section<br />

describes some of the stakeholder perspectives and drivers that will inform the way consultation is<br />

undertaken during the EIS phase.<br />

Traditional Owners<br />

Early, proactive and ongoing contact with Traditional Owners (TOs), including the jungai (caretakers), is<br />

critical in ensuring accurate information is communicated, and two-way consultation is adequately<br />

© Rowland 2012 Page 16


undertaken. It is vitally important to maintain and build on the positive relationships that already exist<br />

between MRM and individual TOs so as to maintain trust and minimise the possibility of profligate<br />

misinformation. There are four major language groups located in the region: Gurdanji, Yanyuwa, Mara<br />

and Garawa. All groups will receive the same level of consultation, which will continuously occur<br />

throughout the EIS phase. Equity of information and consultation among the TOs is critical.<br />

Borroloola township<br />

MRM is located in a remote part of Australia with the close-knit, sensitive and influential township of<br />

Borroloola close by. As the overall level of literacy in the township is relatively low, communication with<br />

the township will be mostly verbal. Information (and misinformation) traditionally spreads quickly<br />

throughout the community. Proactive and accurate two-way communication of information and<br />

consultation is imperative with project stakeholders.<br />

Concerns were raised in the 2010 MRM 360 degree survey (see Section 6.1.2) suggesting Borroloola has<br />

been declared a town rather than an Aboriginal community, but does not get access to some of the<br />

funding that it should as a ‘recognised town’. Many residents, businesses and community members in<br />

the Borroloola town ship believe the town does not receive the growth benefits it should, which is<br />

hindering growth and tourism.<br />

During consultation, a high priority will be placed on communication that shows how the mine already<br />

contributes to and supports Borroloola and the local region, and opportunities associated with the Phase<br />

3 Development Project.<br />

Government<br />

Strong relationships with all levels of government will be important for successful project delivery.<br />

Regular meetings with the Roper Gulf Council, and the NT and Australian Governments will establish<br />

clear objectives, ensuring issues are openly discussed and managed.<br />

Individual advocates and opponents<br />

Many influential individuals are part of groups such as the MRM Community Reference Group, which<br />

assist in ensuring the community is informed and consulted as a priority, and then involved in helping<br />

make decisions.<br />

5.1.2 MRM 360 Degree Survey results<br />

In 2010, MRM carried out a 360 Degree Survey, providing a snapshot view of MRM’s performance,<br />

covering:<br />

● the most important issues facing MRM<br />

● performance on environment and safety<br />

● performance on working with communities and stakeholders<br />

● awareness of MRM’s Sustainable Development policy<br />

● reputation<br />

● communication.<br />

Fifty percent or more of stakeholders rated MRM’s performance as good or very good on nine of ten<br />

measures to track sustainable development performance. The survey showed improvements could be<br />

© Rowland 2012 Page 17


made to transparency on environmental performance, more regular meetings with the community, greater<br />

transparency and information about the Community Benefits Trust and increased economic and<br />

employment benefits to the community.<br />

Figure 6 shows how consultation for the Phase 3 Development Project EIS phase has been planned with<br />

findings from the MRM 360 degree stakeholder survey taken into consideration:<br />

Aspect 360 Degree Survey findings Consultation considerations<br />

Environment<br />

Safety<br />

Community<br />

Performance<br />

Communication<br />

58.6% agreed MRM minimises impacts on the<br />

environment<br />

51.7% agreed and 41.4% could not comment<br />

on MRM’s commitment to safety and safety<br />

performance<br />

69% agree MRM is committed to development<br />

in the NT.<br />

65.5% agree that MRM makes a positive<br />

contribution to the local region<br />

51.7% agree MRM communicates openly on<br />

issues that affect the local community.<br />

79.3% agree MRM has fair and considerate<br />

business practices<br />

58.6% agree MRM is proactive rather than<br />

reactive in dealing with important issues<br />

58.6% agree MRM has a positive reputation in<br />

the area<br />

27.6% agree MRM has communicated with the<br />

community on important issues<br />

Key messages and materials developed about<br />

project environmental management<br />

Early, targeted information and consultation<br />

about environmental management.<br />

All consultation / site tours will be conducted in<br />

accordance with safety requirements.<br />

Lift profile and reputation using key messages<br />

relating to how the Phase 3 Development<br />

Project will further boost development in the<br />

local region and NT.<br />

Fact sheets and key messages contained within<br />

meeting guidelines about economic and<br />

employment benefits to local area.<br />

Early, targeted consultation with key<br />

stakeholders and community, which occurs<br />

promptly to ensure two-way communication and<br />

information-sharing takes place.<br />

Relevant to suppliers<br />

Build on strong performance reputation by<br />

making this a focal point of key messages<br />

relating to economic benefits of project.<br />

Reinforce MRM’s proactivity through<br />

implementing the strategy in a timely manner.<br />

Enhance reputation through proactively<br />

addressing potential and current issues openly<br />

and honestly.<br />

Improve this statistic through a) communicating<br />

openly and proactively about Phase 3<br />

Development Project EIS phase, and b)<br />

implementing a robust evaluation and feedback<br />

strategy to measure perceptions about the<br />

communication process.<br />

© Rowland 2012 Page 18


Aspect 360 Degree Survey findings Consultation considerations<br />

55.2% agree MRM has communicated with<br />

their particular organisation on important issues<br />

The Plan will be all-inclusive through providing<br />

all stakeholders and community members with<br />

the information they need to fully understand the<br />

proposed project, and proactive opportunities to<br />

provide feedback and input.<br />

44.8% rate MRM publications as ‘good to very<br />

good’ to read<br />

27.6% agreed the MRM publications keep the<br />

community informed of key information<br />

10.3% agree MRM keeps the community<br />

informed of key information through providing<br />

information to the media<br />

58.6% agreed MRM meets their organisations’<br />

communication and information needs.<br />

MRM publications, including Memorandum and<br />

website, to include information about the<br />

project. Additional specific information will be<br />

provided via communication materials during<br />

the consultation phase.<br />

MRM publications will play a supporting role in<br />

providing key information, but primary<br />

communication will be through one-on-one and<br />

group meetings, site visits and project-specific<br />

publications.<br />

Local radio has been identified as the local<br />

media player with the highest impact, so<br />

community radio announcements will form an<br />

important aspect of the plan.<br />

The EIS phase is a two-way communication<br />

process designed to meet the communication<br />

and information needs of the community,<br />

township and key stakeholders.<br />

5.1.3 Phase 2 Development – expansion history<br />

Section 2.2 of this Plan provides detail regarding the context of the Phase 3 Development Project in<br />

relation to the mine’s development history and communication context.<br />

5.1.4 Environmental issues – including known issues<br />

● General ongoing consultation through normal MRM operations has revealed there are ongoing<br />

community concerns likely to be raised during the consultation phase for the Project, including: results<br />

of ongoing rehabilitation efforts for the <strong>McArthur</strong> <strong>River</strong> and Barney Creek re-channelling works<br />

● managing seepage at the TSF<br />

● managing the OEF<br />

● marine monitoring at the Bing Bong and Sir Edward Pellew Islands areas<br />

● cultural heritage management.<br />

The 2010 360 Degree Survey showed the most important issues facing MRM included addressing<br />

environmental concerns of the community and maintaining a high level of performance on environmental<br />

aspects.<br />

The survey revealed provision of clear, easily understandable information about environmental<br />

management is constrained by the barriers of distance and site access.<br />

© Rowland 2012 Page 19


Additional environmental concerns raised by the community via the survey include:<br />

● reports that revegetation is behind schedule<br />

● dead wallabies and dingoes reportedly found at Bing Bong – raising concerns about contamination of<br />

wastewater<br />

● concern about contaminants and the impact of the mine’s operations on the environment<br />

● concern about environmental impact due to diversion of <strong>McArthur</strong> <strong>River</strong> and other waterways<br />

● concern about lead and zinc dust and floods which may spread the dust onto the flood plain<br />

● concern regarding welfare of dugongs and sea turtles at Bing Bong.<br />

In addition, there was a general comment that more information needed to be shared with the community<br />

on the overall environmental performance of the mine.<br />

Traditional Owners in particular reported feeling not enough validation is given to their knowledge of the<br />

land, which means MRM may benefit from consulting with TOs about environmental management.<br />

Phase 3 Development Project consultation and communication tools will have a specific focus on<br />

environmental management to address the above concerns.<br />

© Rowland 2012 Page 20


EIS timeframe and milestones<br />

The EIS is expected to be submitted in late 2011. Milestones for consultation are outlined in Figure 7<br />

below:<br />

Milestone<br />

Stage 1 Inform – community and stakeholders informed about proposed project and<br />

upcoming EIS process<br />

Stage 2 Consult – community and stakeholders consulted about proposed project through<br />

EIS drafting process<br />

Stage 3 Involve and collaborate – community and stakeholders provided feedback and<br />

opportunity to become involved in mitigation steps moving forward<br />

Commencement date<br />

March 2011<br />

July 2011<br />

September 2011<br />

EIS submitted Late 2011<br />

Inform / consult / involve / collaborate – following EIS submission, MRM to continue working<br />

closely with community and stakeholders for the life of mine<br />

Ongoing<br />

5.2 Consultation Method<br />

Consultation will be carried out throughout the drafting phase of the EIS, and will continue after EIS<br />

lodgement and beyond, in line with Xstrata’s Sustainable Development Standard 12: Stakeholder<br />

Engagement.<br />

Leading up to EIS lodgement, consultation will roughly follow the method shown in Figure 8, below:<br />

Stakeholder groups Consultation approach General program overview Communication tool<br />

All<br />

Presentations<br />

Community meetings<br />

(Borroloola and Robinson<br />

<strong>River</strong>)<br />

Group meetings (focus<br />

groups style)<br />

Information collateral<br />

distribution (including<br />

newsletters, Memorandum,<br />

and factsheets)<br />

One-on-one meetings<br />

Information stand at<br />

community event<br />

Phone calls and emails to<br />

key stakeholders<br />

Stage 1 Inform<br />

March 2011<br />

Provide an overview of the<br />

planned project and EIS<br />

phase, ensuring stakeholders<br />

and community are<br />

aware/understand their<br />

feedback and input is<br />

important.<br />

● CRG meeting<br />

● Fact sheet #1 – Project<br />

introduction<br />

● Project presentation<br />

● MRM Newsletter<br />

Memorandum<br />

© Rowland 2012 Page 21


Stakeholder groups Consultation approach General program overview Communication tool<br />

All<br />

One-on-one consultation<br />

sessions with groups and<br />

individuals<br />

Group meetings (focus<br />

group style)<br />

Site tours<br />

Information collateral<br />

distribution (factsheets)<br />

Stage 2 Consult<br />

July – August 2011 and<br />

ongoing<br />

Provide in-depth information<br />

about proposed project<br />

Consult and obtain feedback<br />

about proposed project,<br />

impacts, benefits, issues<br />

Share this information with<br />

the EIS project team, with<br />

feedback fed into the design<br />

process.<br />

● Fact sheet #1 – Project<br />

introduction<br />

● Fact sheet #2 – Tailings<br />

Storage Facility<br />

● Fact sheet #3 –<br />

Overburden<br />

● Other general MRM fact<br />

sheets including<br />

(Cultural Heritage<br />

Management, Regional<br />

Development,<br />

Rehabilitation of<br />

<strong>McArthur</strong> <strong>River</strong> and<br />

Barney Creek, Marine<br />

Monitoring, Pathways<br />

to Employment)<br />

● Meeting guidelines<br />

NT Government<br />

Roper Gulf Shire Council<br />

(Borroloola)<br />

Communities – Yanyuwa<br />

Communities – Gurdanji<br />

Communities – MAWA<br />

Communities – Mara<br />

Communities – Garrawa<br />

Communities – General<br />

MRM CRG<br />

Mabunji Aboriginal<br />

Resource Association<br />

Meetings with key groups<br />

Community meetings –<br />

Borroloola, King Ash Bay<br />

and Robinson <strong>River</strong><br />

Stage 3 Involve and<br />

collaborate<br />

September 2011<br />

Provide feedback on the<br />

outcomes of the consultation<br />

process.<br />

Work with key stakeholders to<br />

gain input into proposed risk<br />

mitigation and opportunity<br />

maximisation strategies.<br />

● All fact sheets<br />

● Presentations<br />

● Meeting guidelines with<br />

consultation report notes<br />

© Rowland 2012 Page 22


5.3 Communication Tools and Activities<br />

Figure 9 shows communication tools and activities to be used throughout the project:<br />

Type<br />

Communication tool / activity Detail<br />

Project Fact sheets ● Use as a means of providing general information and<br />

proactively communicating about anticipated areas of<br />

interest, or issues which repeatedly arise through consultation<br />

● Phase 3 Fact sheet 1 – Project introduction<br />

● Phase 3 Fact sheet 2 – Tailings storage facility<br />

● Phase 3 Fact sheet 3 – Overburden<br />

● Other MRM fact sheets available – Cultural Heritage<br />

Management, Regional Development, Rehabilitation of<br />

<strong>McArthur</strong> <strong>River</strong> and Barney Creek, Marine Monitoring,<br />

Pathways to Employment.<br />

Presentations<br />

● Master presentation used at community meetings / information<br />

sessions.<br />

Hotline / email ● Information line number - 1800 211 573<br />

● Project email – mrmprojeng@xstrata.com.au<br />

● Both managed by Rowland.<br />

Website ● General MRM website contained a section on the Phase 3<br />

Development Project, including fact sheets and general<br />

project information.<br />

Site visits<br />

Newsletter<br />

● Site visits were a key tool for targeting stakeholders in the<br />

‘Manage Closely’ category, showing mining operations first<br />

hand, and using physical references to explain the Project.<br />

● Memorandum is MRM’s quarterly newsletter and provided<br />

information updates on the project in the April and October<br />

editions.<br />

Positioning strategy ● Key messages – see Section 7<br />

● Questions & Answers (Q&As) – see Section 8<br />

● Important tools for general project communication and issues<br />

mitigation.<br />

Community Community meetings ● Minutes or notes recorded and entered into CMS*.<br />

MRM Community Reference<br />

Group<br />

● Regular March meeting was used as an opportunity to provide<br />

information about the Project.<br />

● June meeting was used as a focus group to consult on the<br />

Project.<br />

● September meeting was used as part of the involve and<br />

collaborate phase 3 of consultation.<br />

Consultation One-on-one meetings ● Main activity undertaken during consultation process<br />

● Notes taken during / immediately after discussions captured.<br />

© Rowland 2012 Page 23


Type<br />

Communication tool / activity Detail<br />

Meeting guides<br />

Images, diagrams, maps<br />

● Scripts / guides in place to prompt consultation with<br />

stakeholders to ensure it comprehensively covered all<br />

subjects required.<br />

● Visual communication tool used during meetings / presentations<br />

/ informal discussions to provide information about project.<br />

*CMS (Consultation Manager System) is an online stakeholder data management software program that captures and stores all<br />

contact with indentified stakeholders, allowing easy access to information for analytical and informative purposes.<br />

© Rowland 2012 Page 24


5.4 Stakeholder Engagement Strategy Overview<br />

What is our end outcome?<br />

GOAL<br />

To achieve open, equitable, all-inclusive and comprehensive engagement and consultation with the community and key stakeholders.<br />

What do we want to achieve?<br />

OBJECTIVES<br />

●<br />

●<br />

●<br />

Involve as many people as possible in the engagement and consultation process<br />

Help inform decision making on the project to clearly address concerns<br />

Collaborate with the community to look at ways to reduce identified project risks and enhance benefits and opportunities<br />

I f t t i t d l ff ti t hi ith l l b i t hi i t f th i<br />

How will we communicate and manage relationships with<br />

stakeholders and the community to achieve our objectives?<br />

OUR APPROACH<br />

1. Develop and produce a best-practice <strong>Social</strong> <strong>Impact</strong> <strong>Assessment</strong> in line with national and international industry guidelines<br />

2. Implement a transparent and comprehensive communication program, appropriate for a variety of audiences<br />

3. Use every point of contact to proactively address issues.<br />

Stakeholders, communication tools and materials<br />

METHODOLOGY<br />

1. SIA<br />

● Desktop research – gather facts and baseline data<br />

● Consultation – conduct consultation to test points of<br />

Project impact and explore issues, concerns and<br />

opportunities<br />

● Drafting – Includes SIA chapter and Consultation<br />

Report compliant with MRM Stakeholder<br />

Engagement Plan (Standard 12)<br />

2. COMMUNICATIONS PLAN<br />

● Project – fact sheets, presentations, hotline / email,<br />

website, site visits, positioning (Q&As and key<br />

messages)<br />

● Community – community meetings, radio, CRG<br />

● Consultation – one-on-one meetings, meeting<br />

guides, photos and plans.<br />

3. MEDIA AND ISSUES MANAGEMENT STRATEGY<br />

● Media relations<br />

○ Launch of NOI<br />

○<br />

○ Lodgment of EIS<br />

○ Reactive as required<br />

● Issues<br />

○ Position on anticipated issues (Q&As form foundation)<br />

○ Issues register<br />

○ Monitoring / tracking emerging issues<br />

○ Workshop outcomes with MetServe<br />

● Mitigation.<br />

How will we measure success?<br />

EVALUATION<br />

Success will be measured in line with objectives through a range of methods including:<br />

● Project approval<br />

● Public reaction to EIS and submissions received<br />

● Enquiries closed out in agreed timeframes<br />

● High level of awareness and satisfaction about the company and Project<br />

● Formal and informal feedback received through advertised channels / Project team members<br />

● Recognition of Project positioning<br />

● Effective development of stakeholder database and data capture to support future Stakeholder Engagement Strategies.<br />

© Rowland 2012 Page 25


6 Key Messages<br />

1. This development builds on the success of the conversion to open pit mining.<br />

Supporting facts:<br />

● MRM received approval to convert to open pit operations and mine 43 million tonnes establishing an<br />

estimated life of mine to 2027.<br />

● During 2009, the mine produced 2.1 million tonnes of ore and 358,000 dry metric tonnes of bulk<br />

zinc/lead concentrate.<br />

● Current estimates for 2010 calendar year results indicate around 9% growth in mine production.<br />

● The full capacity of the processing facility is 2.5 million tonnes.<br />

● Open pit mining has enabled MRM to meet targeted objectives on employment, environment and<br />

socio-economic benefits.<br />

● MRM has maintained the mine’s good record for environmental management, invested over $7 million<br />

in community benefits and increased Indigenous employment from 9% of the workforce to 20%.<br />

● The proposed expansion of the mine offers significant strategic benefits:<br />

○ It enables us to maximise the value of the MRM zinc resources which are ranked as the third<br />

largest in the world.<br />

○ It provides a new market for MRM bulk concentrate in addition to existing customers in Asia and<br />

Europe and which importantly, would take the expanded volume produced.<br />

○ It has the potential to result in a 20% reduction in unit costs through greater efficiencies of<br />

production.<br />

○ This cost reduction supports the conversion of a large share of resources into reserves and<br />

extends the life of mine.<br />

● In mid 2009, MRM’s mineable reserves were measured at 45 million tonnes. Based on preliminary<br />

planning we expect reserves to increase to 115 million tonnes supporting a life of mine of 23 years<br />

until 2033 at the increased production rate.<br />

● Other opportunities are created through:<br />

○ increasing employment within all aspects of the mine’s operations<br />

○ increasing exports of zinc concentrate<br />

○ continuing support for a wide range of NT based suppliers<br />

○ continuing support for the social and economic development of the Gulf region.<br />

© Rowland 2012


2. This development secures a new market for MRM bulk concentrate and the future of the<br />

mine.<br />

Supporting facts:<br />

● A USD900 million integrated development plan within Xstrata Zinc’s global business involves:<br />

○ The expansion of MRM to increase the production rate from 2.5 million tonnes to approximately 5.0<br />

million tonnes per annum in a development currently estimated to cost USD270 million. This would<br />

result in an increase in MRM bulk concentrate volume from 358,000 dry metric tonnes per annum<br />

to 800,000 tonnes per annum.<br />

○ The installation of Xstrata’s proprietary hydrometallurgy technology within the European smelters to<br />

take the expanded volume of MRM bulk concentrate.<br />

○ The potential to supply lead by-products from the hydrometallurgy technology smelters as a<br />

feedstock to the Brunswick Lead Smelter in Canada.<br />

● There is now a genuine urgency to implement Xstrata Zinc’s strategic plan.<br />

● A demonstration plant was commissioned in July 2010 at the San Juan de Nieva Smelter in Spain and<br />

another will be commissioned in Nordenham, Germany in early 2011. These developments are still<br />

undergoing feasibility analysis.<br />

● The two demonstration plants represent an investment of USD19 million. The full cost to expand the<br />

two smelters using the new technology is estimated at USD650 million.<br />

● The decision to proceed with the MRM expansion requires the successful conclusion of feasibility<br />

studies and technology trials in Europe as well as positive outcomes from the MRM feasibility study<br />

and environmental impact assessment.<br />

● MRM produces a mixed zinc and lead concentrate known as “bulk concentrate”. Due to its high<br />

content of lead, this product cannot be processed regularly in conventional electrolytic zinc plants<br />

which are the most common type of zinc process.<br />

● Over 90% of zinc produced globally is produced by electrolytic smelters.<br />

● The only smelters that can treat bulk concentrates are the ones with Imperial Smelting Furnaces (ISF).<br />

Unfortunately, during the last decade the ISF process became less competitive than electrolytic<br />

smelters mainly due to its high labour intensity and escalating metallurgical coke prices.<br />

● A number of ISF’s were forced to close down in the past years mainly in Europe reducing the share of<br />

zinc produced by this process to less than 6% of primary global zinc. The recent closure of the<br />

Shaoguan ISF by Chinese authorities for environmental reasons only worsens this trend of growing<br />

difficulties to sell the output of MRM bulk concentrates.<br />

● This shrinking market situation together with a still high operating cost at MRM poses a serious risk for<br />

the future viability of MRM. In order to solve this problem Xstrata Zinc intends to implement a strategic<br />

plan involving the expansion of MRM to reduce its unit operating cost to make it competitive with other<br />

zinc mines and at the same time expand its European smelters with a direct leaching stage developed<br />

in-house which can process the bulk concentrates produced at MRM.<br />

● Previous efforts to install this new technology in Gladstone were unsuccessful due to the elevated cost<br />

of capital involved in a Greenfield site.<br />

© Rowland 2012 Page 27


3. There would be no change to the <strong>McArthur</strong> <strong>River</strong> channel.<br />

Supporting facts:<br />

● Planning for the open pit operation took into consideration the significant potential reserves within the<br />

ore body and consequently civil works were carried out in such a way to facilitate the mine’s future<br />

expansion subject to approvals.<br />

● This expansion would see MRM maximising mining operations within the bund area.<br />

● There is no intention of further diversions to the <strong>McArthur</strong> <strong>River</strong> or Barney Creek channels.<br />

● The EIS will investigate all environmental, infrastructure and operational requirements associated with<br />

the expansion.<br />

© Rowland 2012 Page 28


7 Project Q&As<br />

Stakeholder engagement<br />

Q. What discussions have you had with the NTG regarding the proposed development?<br />

We have spoken with government regarding this opportunity to build on the success of the conversion to<br />

open pit mining.<br />

Q. What was their reaction?<br />

There is recognition in government that the open pit operation has been successful. It has achieved<br />

production targets, maintained the mine’s good record for environmental management and invested over<br />

$7 million in community benefits. Importantly, Indigenous employment has also increased from 9% of the<br />

workforce to 20%. The proposed expansion is an opportunity to build on this success.<br />

Q. Has the local community been consulted about the expansion plan?<br />

We will be conducting a thorough community consultation program as part of the EIS process.<br />

Q. Do you anticipate significant opposition to the plan given the difficulties in getting the open pit<br />

conversion approved?<br />

Everyone is entitled to their own opinion and we will be conducting a thorough community consultation<br />

program to ensure all views are heard.<br />

The key difference with this development is that it will not require any change to the <strong>McArthur</strong> <strong>River</strong> or<br />

Barney Creek channels which have now been established as the permanent water courses for these<br />

sections of the river system.<br />

Q. After the issues with the last development, you must expect though that there will still be<br />

opposition to anything MRM does?<br />

Everyone is entitled to their own opinion and we will be conducting a thorough community consultation<br />

program to ensure all views are heard.<br />

It is also important to acknowledge there are many community members who see the open pit operation<br />

as successful, particularly due to our work through the MRM Community Benefits Trust and with<br />

Indigenous employment.<br />

Planning<br />

Q. Why is this development necessary so quickly after the open pit development was completed?<br />

This is mainly due to two drivers. One is the change in the smelter market. Over 90% of zinc produced<br />

globally is produced by electrolytic smelters. The market MRM supplies – the Imperial Smelting Furnaces<br />

– is less cost competitive and now produces less than 6% of the world’s primary zinc and is in decline.<br />

We need to find a new market for our bulk concentrate as it cannot be used by electrolytic smelters.<br />

We now have an opportunity to develop MRM as part of an integrated plan involving Xstrata Zinc’s<br />

European Smelters and the Canadian Lead Smelter. Xstrata’s proprietary hydrometallurgy technology<br />

© Rowland 2012 Page 29


smelters are able to use MRM bulk concentrate as a feedstock. This creates a new market for MRM’s<br />

expanded production in addition to the current customers in Europe and Asia.<br />

Q. Did you know when you were getting the open pit approved that this development would be<br />

possible?<br />

It was always understood that there are significant potential reserves within the orebody mined by MRM.<br />

The civil works for the open pit conversion were done in such a way to facilitate the mine’s future<br />

expansion subject to approvals. This proposed development builds on the success of the open pit<br />

conversion.<br />

Q. Why are the feasibility study and EIS being conducted at the same time?<br />

There is a real urgency to progress with this plan and find a solution for MRM markets. The timing is also<br />

linked to ongoing feasibility studies and technology trials in Europe at the smelters.<br />

Q. When do you plan to start mining at the higher rate?<br />

All the developments within the integrated plan are aiming for a 2013 indicative start up. This is subject to<br />

the successful conclusion of all the feasibility studies, technology trials and environmental impact<br />

assessment.<br />

Q. How much ore would be left in the deposit after mining the 115 million tonnes?<br />

The ore body at MRM is a large deposit, and at this early stage, it is hard to provide an exact answer as<br />

further studies will be required.<br />

Q. Can the mine be expanded any more after this?<br />

We are continuing to expand our reserves but any further development plans would again, be subject to<br />

approval.<br />

Q. Are you mining the open pit faster than initially planned?<br />

We have approval to mine 43 million tonnes. This opportunity is to build on the success of the open pit<br />

operation to date and increase production.<br />

Q. You initially had approval for a production rate of 1.8 million tonnes. You are already doing<br />

more than that. How is that possible?<br />

MRM operates with regulatory approval for our annual mine management plans. The open pit operation<br />

has to date, achieved all production targets. The development opportunity is to now build on that<br />

success.<br />

Q. Will you be releasing the Mine Management Plan for the expanded operation as part of the EIS<br />

process?<br />

The MMP is not relevant to the environmental impact assessment. This is a regulatory document the<br />

details our operational plan.<br />

Q. Did you consider building your own smelter in Australia?<br />

Yes we investigated a site in Gladstone however it proved to be unviable to develop a Greenfield site<br />

compared to brownfield expansions to our European smelters.<br />

© Rowland 2012 Page 30


Issues<br />

Q. How much bigger will the tailings dam need to be and how can you be sure it will not leak?<br />

The planning for the tailings dam and other infrastructure will be conducted as part of the EIS and<br />

feasibility study. It is important to recognise that MRM has to date, maintained a record of no adverse<br />

impact on the environment since mining commenced in 1995.<br />

Q. How many additional jobs will be created by this development?<br />

The workforce planning will be conducted as part of the EIS and feasibility study.<br />

Q. Will you need to expand Bing Bong and/or dredge a second channel for ships or another<br />

barge?<br />

There is no requirement to expand the Bing Bong facilities or dredge a second channel as there is<br />

currently adequate capacity to manage the increased production levels.<br />

Q. Your Mine Management Plan is approved for a production rate of 2.1 million tonnes per year,<br />

however in 2010, you produced 100,000 tonnes more. Why?<br />

There is a timing difference between when production results are calculated. The Mine Management Plan<br />

period records production achieved from October through to September, whereas our production rates<br />

are based on results achieved during a calendar year.<br />

Q. What rehabilitation has been done of the <strong>McArthur</strong> <strong>River</strong> in the past year?<br />

Since the 2007/08 wet season, MRM has planted more than 40,000 seedlings and direct-seeded more<br />

than 18 different tree, shrub and grass species across more than 120.4 hectares of land surrounding the<br />

Barney Creek and <strong>McArthur</strong> <strong>River</strong> channels.<br />

© Rowland 2012 Page 31


8 Stakeholder and Issues Identification<br />

8.1 Issues classification<br />

Figure 10 shows categories and details of issues anticipated to be raised during the project:<br />

Grouping Issue Potential concerns<br />

Environment Bing Bong<br />

Cultural heritage<br />

Dust / air quality<br />

Flora<br />

Fauna<br />

Monitoring / surveys<br />

Rehabilitation – general<br />

Rehabilitation –<br />

<strong>McArthur</strong> <strong>River</strong> /<br />

Barney Creek<br />

Water monitoring<br />

● Extra barge movements and potential impacts on surrounding coast<br />

environment / Sir Edward Pellew Islands area<br />

● <strong>Impact</strong> of more ships on the Gulf<br />

● Safety of boating<br />

● <strong>Impact</strong> of increased barge and ship movements<br />

● Levels of metals / dust in swing basin<br />

● Ongoing preservation of cultural heritage<br />

● Identification and protection of sites of cultural significance and sacred<br />

sites<br />

● Concern about dust from site / tailings / overburden / loading and barge<br />

movements at Bing Bong<br />

● Protection of local species<br />

● Propagation of local species in rehabilitation works<br />

● Marine, freshwater, land – concern about endangered and threatened<br />

species<br />

● Contamination of traditional food sources<br />

● Querying results of Independent Environmental Monitor’s report and<br />

Australian Institute of Marine Science reports<br />

● Ongoing monitoring throughout mine life and after mine life<br />

● Relating to mine closure, tailings storage facility, overburden facility,<br />

open pit<br />

● Concern about whether further re-channelling will be required for project<br />

● Ongoing rehabilitation results<br />

● Local assistance / employment in area of rehabilitation<br />

● Any potential impacts on local water courses.<br />

● Metal content in water – <strong>McArthur</strong> <strong>River</strong> and Barney Creek<br />

● Ensuring water quality is not compromised<br />

● Monitoring changes in waterway systems.<br />

Project Construction ● Length of time for construction<br />

● Number of workers required on site<br />

● Expense of construction<br />

● Break-down for where project funding will be allocated (i.e. plant<br />

upgrades, power station upgrades)<br />

© Rowland 2012 Page 32


Grouping Issue Potential concerns<br />

<strong>Social</strong><br />

Design<br />

General<br />

Loading / shipping<br />

OEF<br />

TSF<br />

Traffic and transport<br />

Community Benefits<br />

Trust<br />

● Design of various facilities – pit, overburden emplacement facility,<br />

tailings storage facility<br />

● Issues unable to be classified in other areas<br />

● Whether extra dredging or development will be required at Bing Bong<br />

● Potential dust impacts on the coastal area<br />

● Whether any additional OEFs are required and where they will be<br />

located<br />

● Changes to be made to current OEF<br />

● Concern about potential environmental impacts<br />

● Visual amenity<br />

● Will TSF be made higher / wider<br />

● How is seepage being managed<br />

● Concern about potential environmental impacts<br />

● Visual amenity<br />

● <strong>Impact</strong> of double the truck movements between the mine and Bing Bong<br />

● <strong>Impact</strong> of more freight trucks required to service mine<br />

● Road maintenance.<br />

● Will the MRM allocation of funding for the CBT increase with increased<br />

production<br />

● How can organisations access the fund<br />

● How are grants approved?<br />

Compensation / royalties ● Will TOs and Indigenous groups receive compensation as a result of<br />

increased production<br />

Economic contribution<br />

Employment<br />

Procurement<br />

Youth opportunities<br />

Consultation<br />

● Potential for extra economic contribution to local area<br />

● Opportunities for increased employment as a result of the proposed<br />

project<br />

● Issues with retention<br />

● Local issues such as humbugging, alcohol and drug management, low<br />

literacy / numeracy, housing shortages – how will MRM manage these to<br />

ensure there are good incentives for employment?<br />

● Increased opportunities for local suppliers<br />

● Opportunities for youth to be involved in employment and other mine<br />

initiatives e.g. sponsorship<br />

● Community and stakeholders wish to be consulted more during mine<br />

operations and be involved in decision-making<br />

© Rowland 2012 Page 33


8.2 Stakeholders<br />

A broad list of stakeholder groups is contained below. All require consultation. The list will be developed<br />

further as a consequence of consultation.<br />

Broad stakeholder groups<br />

● Federal Government<br />

○ Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA)<br />

● NT Government<br />

○ Department of National Resources, Environment, the Arts and Sport (NRETAS)<br />

○ Department of Land and Planning<br />

○ Department of Housing, Local Government and Regional Services<br />

○ Centrelink<br />

○ Parks and Wildlife Borroloola (Gulf District)<br />

● Roper Gulf Shire Council<br />

● Traditional Owners – Gurdanji, Yanyuwa, Garawa, Mara<br />

● Communities of Borroloola, Robinson <strong>River</strong>, King Ash Bay<br />

● Community organisations and interest groups<br />

○ MRM Community Reference Group<br />

○ Community Men’s and Women’s Groups (Community Benefits Trust)<br />

○ Northern Land Council (NLC) - Borroloola<br />

○ Environment Centre Northern Territory (ECNT)<br />

○ Li-Anthawirriyarra Sea Rangers<br />

○ Mungoorbada Aboriginal Corporation (Robinson <strong>River</strong>)<br />

○ Mabunji Aboriginal Resource Association Inc. (Borroloola)<br />

○ Borroloola Health Clinic<br />

○ Borroloola NAIDOC Committee<br />

○ Boonu Boonu Festival organisers<br />

○ Aboriginal Areas Protection Authority<br />

○ NT Chamber of Commerce<br />

○ Economic Development Committee<br />

○ Mawurli and Wirriwangkuma Aboriginal Association (MAWA)<br />

○ Industry Services Australia (ISA)<br />

● Borroloola residents and business owners<br />

● Borroloola school and other services<br />

● Regional community members<br />

● Individual opponents<br />

● Individual advocates<br />

● Pastoralists (e.g. <strong>McArthur</strong> <strong>River</strong> Station)<br />

● Local radio station<br />

● Employees and suppliers.<br />

© Rowland 2012 Page 34


9 Issues Management<br />

Management of issues is imperative through all communication activities.<br />

All issues or potential issues relating to key stakeholder or community members must be reported to the<br />

communications team immediately. The project team will then assess the issue, determine the potential<br />

impact and mitigation measures, and act appropriately.<br />

Issues will be managed as shown in Figure 11 below:<br />

Activity Detail Responsibility<br />

Clear positioning<br />

Points of contact<br />

Issues register<br />

Monitoring / tracking<br />

issues<br />

Workshop outcomes<br />

Mitigation<br />

All project team members will have an understanding of<br />

MRM’s positioning on anticipated issues.<br />

MRM’s position is based on responses provided in Q&A.<br />

Every point of contact with stakeholders and the community<br />

will be used as a means of proactively addressing anticipated<br />

issues using positioning messages.<br />

Every opportunity will be taken to obtain feedback on<br />

anticipated issues.<br />

A register will be maintained outlining all issues raised by<br />

stakeholders and within the media.<br />

Updates on progress of resolution / feedback sent to project<br />

team members.<br />

CMS will be used to monitor progress of issues resolution, and<br />

track emerging issues.<br />

Issues and outcomes will be workshopped with MetServe for<br />

inclusion as appropriate within EIS draft.<br />

Issues will be mitigated as much as possible as they arise<br />

Mitigation techniques will be communicated to stakeholders as<br />

appropriate.<br />

Drafting positioning –<br />

Rowland<br />

Communicating positioning –<br />

Ettienne Moller & Vicky<br />

Nangala<br />

Ettienne Moller<br />

Vicky Nangala<br />

Joanne Pafumi<br />

Brian Hearne<br />

Rowland<br />

Rowland<br />

MetServe<br />

MRM / Xstrata Zinc<br />

Rowland<br />

Ettienne Moller<br />

Vicky Nangala<br />

© Rowland 2012 Page 35


10 Media Management<br />

The media holds a large amount of influence over public opinion, particularly in the NT. Maintaining<br />

awareness of and anticipating potential coverage and issues raised in the media will allow the project<br />

team to be able to respond appropriately and proactively where possible.<br />

Media will be managed as shown in Figure 12 below:<br />

Activity Detail Responsibility<br />

Media relations<br />

Media monitoring<br />

Local radio<br />

Media statements will be issued at the following project<br />

milestones:<br />

● Launch of Notice of Intent<br />

● Lodgement of Environmental <strong>Impact</strong> Statement and<br />

commencement of public review period<br />

Media relations will also occur as an issues management strategy<br />

when required.<br />

Media coverage will be monitored through Xstrata Zinc’s media<br />

monitoring processes.<br />

Negative media / issues will be responded to where it is deemed<br />

appropriate.<br />

Monitoring of coverage will also be used to evaluate effectiveness<br />

of communication and consultation activities, and public<br />

awareness of the project.<br />

Local radio in Borroloola is a primary means of communicating<br />

broadly with community and township members.<br />

Community announcements will be broadcast via this medium.<br />

Where necessary, interviews will be broadcast with the project<br />

team members to provide information.<br />

Joanne Pafumi<br />

Rowland<br />

Joanne Pafumi<br />

Fran Rossberg<br />

Ettienne Moller<br />

Vicky Nangala<br />

10.1 Media policy<br />

No MRM / Xstrata Zinc or MetServe employee or contractor should communicate with any representative<br />

of the media about any aspect of the project. All media enquiries should be referred to the<br />

communication team, and Joanne Pafume (Xstrata Zinc) will respond.<br />

10.2 Standard script for media enquiries<br />

The following script should be used by all project team members when approached by representatives of<br />

the media:<br />

“I’m the not the best person to answer your query, but I will take down your details and arrange for<br />

someone from Xstrata Zinc to contact you.”<br />

The Project team member should ask the following questions to ensure they can respond to the<br />

journalist’s questions in a timely, appropriate manner, and then provide this information to the<br />

communications team immediately:<br />

© Rowland 2012 Page 36


● What is your name?<br />

● Where are you (calling) from?<br />

● What is the best number to contact you on?<br />

● What information do you require?<br />

● What is your deadline?<br />

© Rowland 2012 Page 37


11 Project Controls<br />

11.1 Recording consultation and community feedback<br />

All interactions with community and township members and key stakeholders will be recorded in the<br />

Consultation Manager (CMS) database by Rowland to ensure details of all stakeholders and their issues<br />

regarding the project are included in the EIS, and that feedback is provided to stakeholders as to how<br />

their input has been considered. Recording in CMS provides the following benefits:<br />

● Recording of issues and resolutions<br />

● Opportunities for issues tracking and analysis<br />

● Identification of appropriate communication methods and materials<br />

● Various reporting functions to provide a wide range of data able to be analysed.<br />

11.2 Reporting consultation findings<br />

During implementation of the Plan, summary reports will be provided on a weekly basis to MetServe and<br />

Xstrata Zinc. The report, generated from CMS and analysed by the Rowland EIS team, will include a<br />

summary of all stakeholder and community member contact during the week, together with issues raised.<br />

A draft technical report will detail preliminary findings based on results of consultation activities, and will<br />

be provided immediately following completion of the second round of consultation.<br />

Reports, including all figures and appendices, will be provided in electronic format (draft and final reports<br />

in both MS Word and Adobe Acrobat format).<br />

© Rowland 2012 Page 38


12 Evaluation<br />

Evaluation will allow the project communication team to track the effectiveness of the Stakeholder<br />

Engagement Plan in meeting objectives, and if necessary, inform modification of the strategy to ensure<br />

the Plan continues to meet objectives.<br />

Figure 13 shows objectives, measurable outcomes and measurement tools:<br />

Objective Measurable outcome Measurement tool<br />

●<br />

Stakeholders are aware<br />

and accurately informed<br />

about:<br />

○ the proposed project –<br />

what to expect during<br />

construction and long-term<br />

operation<br />

○ why the project is required<br />

○ potential benefits and<br />

impacts of the project to<br />

the community<br />

○ Monitoring and<br />

environmental issue<br />

mitigation strategies<br />

○ The EIS period – how to<br />

contribute<br />

○ The consultation process<br />

through MRM’s submitted<br />

EIS.<br />

Stakeholders are proactively<br />

provided with opportunities to<br />

ask questions, provide input<br />

and receive answers<br />

throughout the EIS process<br />

● All identified stakeholders are<br />

provided information about the<br />

project<br />

● Feedback received from<br />

stakeholders demonstrates an<br />

understanding of the project /<br />

benefits / EIS / consultation<br />

process<br />

● Unsolicited project queries and<br />

feedback is high and comes via<br />

advertised channels, e.g. MRM<br />

hotline or email address.<br />

● Minimal reports of stakeholders<br />

feeling they were not proactively<br />

provided opportunities to<br />

comment / provide feedback<br />

● High level of clear, constructive<br />

feedback received<br />

● Feedback received within<br />

advertised consultation period in<br />

a timely fashion.<br />

● CMS – cross-check records against the<br />

Plan to ensure all identified stakeholders<br />

have been contacted / met with and<br />

provided with written documentation<br />

● CMS – analysis shows feedback<br />

provided demonstrates understanding<br />

● Media coverage – minimal clippings with<br />

stakeholders claiming to be a) unaware<br />

of the project, b) not given opportunity to<br />

provide feedback.<br />

● CMS – analysis shows minimal<br />

complaints about consultation process<br />

● CMS shows stakeholders have provided<br />

feedback<br />

● Positive anecdotal feedback is received<br />

about the consultation process.<br />

Stakeholders trust and refer to<br />

MRM as their primary source of<br />

project information<br />

● Low level of misinformation in<br />

circulation<br />

● High level of MRM project<br />

materials in circulation<br />

● Unsolicited project queries and<br />

● CMS – analysis shows high level of<br />

stakeholder understanding about project<br />

● CMS – meeting records show type of<br />

materials provided to track circulation<br />

● CMS – analysis shows feedback comes<br />

© Rowland 2012 Page 39


Objective Measurable outcome Measurement tool<br />

Stakeholders and MRM work<br />

together to identify and address<br />

issues in a timely manner<br />

MRM fosters positive<br />

relationships conducive to open,<br />

two-way communication with<br />

stakeholders<br />

MRM’s reputation is protected<br />

and enhanced<br />

MRM develops sustainable<br />

communities<br />

feedback comes via advertised<br />

channels<br />

● Media coverage with<br />

stakeholders claiming limited to<br />

no project knowledge is minimal.<br />

● Stakeholders work with MRM<br />

through consultation process to<br />

identify and address issues<br />

● Relationships are strengthened<br />

and enhanced through the<br />

consultation process<br />

● MRM’s portrayal in the media is<br />

predominantly balanced, neutral<br />

or positive<br />

● Stakeholder and community<br />

sentiment towards MRM is<br />

predominately balanced, neutral<br />

or positive.<br />

● A high level of community respect<br />

and trust in MRM is in place<br />

● The local community reaches<br />

growth objectives.<br />

via in person, telephone, email or<br />

community meeting<br />

● CMS – number of Project enquiries<br />

● Media analysis – number of media clips<br />

with stakeholders and community<br />

members claiming limited or no Project<br />

knowledge are minimal.<br />

● Community Reference Group (CRG) -<br />

used as an issues management and<br />

resolution tool<br />

● Anecdotal feedback from the CRG<br />

regarding the engagement and<br />

consultation process<br />

● CMS – analysis shows stakeholders<br />

provide feedback and work<br />

constructively with MRM through<br />

consultation process<br />

● Project reporting highlights potential<br />

issues raised by stakeholders, and<br />

management/mitigation strategies<br />

● Implementation of the Stakeholder<br />

Engagement Plan results in feedback for<br />

SIA and Consultation Report.<br />

● Anecdotal feedback from stakeholders<br />

and the CRG regarding the timeliness of<br />

communications resources and<br />

satisfaction with the information provided<br />

● The next 360 Degree Survey to be<br />

undertaken shows improved results in<br />

effectiveness and performance.<br />

● Analysis of media clips show balanced,<br />

neutral or positive reporting about MRM<br />

and the project is high<br />

● Anecdotal feedback from the CRG<br />

regarding how MRM is viewed in the<br />

community is positive / neutral<br />

● The next 360 Degree Survey to be<br />

undertaken shows improved results in<br />

perceptions about MRM.<br />

● The next 360 Degree Survey to be<br />

undertaken shows improved results in<br />

community sustainability.<br />

Negative sentiment is minimised<br />

● Questions and feedback provided ● CMS – detail of feedback / input shows<br />

© Rowland 2012 Page 40


Objective Measurable outcome Measurement tool<br />

and all feedback is considered in<br />

EIS submission<br />

in first round of consultation are<br />

answered adequately in second<br />

round of consultation<br />

● High level of support and<br />

endorsement.<br />

stakeholders feel queries have been<br />

adequately answered.<br />

© Rowland 2012 Page 41


Appendix 2<br />

Appendix 2: IAP2 Core Values<br />

As an international leader in public participation, IAP2 has developed the "IAP2 Core Values for Public<br />

Participation" for use in the development and implementation of public participation processes.<br />

These core values were developed over a two year period with broad international input to identify those<br />

aspects of public participation which cross national, cultural, and religious boundaries.<br />

The purpose of these core values is to help organisations, decision makers and practitioners make better<br />

decisions which reflect the interests and concerns of potentially affected people and entities.<br />

1. The public should have a say in decisions about actions that could affect their lives.<br />

2. Public participation includes the promise that the public's contribution will influence the decision.<br />

3. Public participation promotes sustainable decisions by recognizing and communicating the needs and<br />

interests of all participants, including decision makers.<br />

4. Public participation seeks out and facilitates the involvement of those potentially affected by or<br />

interested in a decision.<br />

5. Public participation seeks input from participants in designing how they participate.<br />

6. Public participation provides participants with the information they need to participate in a meaningful<br />

way.<br />

7. Public participation communicates to participants how their input affected the decision.


Appendix 3<br />

Appendix 3: IAP2 Spectrum<br />

IAP2's Public Participation Spectrum is designed to assist with the selection of the level of participation<br />

that defines the public's role. The Spectrum show that differing level of participation are legitimate<br />

depending on the goals, time frames, resources and levels of concern in the decision to be made.<br />

However, and most importantly, the Spectrum sets out the promise being made to the public at each<br />

participation level.


Appendix 4<br />

Appendix 4: Communication tools


<strong>McArthur</strong> <strong>River</strong> Mine<br />

Phase 3 Development Project<br />

Factsheet 1. Project Introduction<br />

11 March 2011


Factsheet 1. Project Introduction<br />

<strong>McArthur</strong> <strong>River</strong> Mine Phase 3 Development Project<br />

Xstrata Zinc is conducting studies into the third phase of<br />

development at <strong>McArthur</strong> <strong>River</strong> Mine (MRM) following its<br />

commencement as an underground mine in 1995 and later<br />

conversion to open pit mining in a project completed in 2009.<br />

The proposal involves increasing MRM mine production<br />

to approximately 5 million tonnes per year resulting in an<br />

increase in bulk zinc/lead concentrate volume to 800,000<br />

tonnes per annum. Concentrate would continue to be<br />

trucked to the Bing Bong loading facility, with product<br />

loaded via the existing offshore barge facility.<br />

The indicative cost of the project is $270 million. Subject<br />

to the completion of studies and internal Xstrata and<br />

government approval, works on the project would<br />

commence in 2012.<br />

A notice of intent for an environmental assessment of the<br />

project was lodged with the Northern Territory Government<br />

on 11 March 2011 (www.nt.gov.au/nreta/environment/<br />

assessment/index.html).<br />

Map of current MRM operations and base case for<br />

assessment for MRM Phase 3 Development Project<br />

The key features of the proposed development comprise:<br />

• expanding the existing open pit mining operation within<br />

the bund through an expanded fleet of conventional<br />

shovels/excavators and large haul trucks<br />

• increasing the capacity of the existing Tailings Storage<br />

Facility (TSF)<br />

• generating approximately 500 million tonnes of additional<br />

waste rock to be sent to overburden emplacement<br />

facilities (OEF)<br />

• upgrading the processing plant<br />

• expanding the power station requirements at the<br />

mine site<br />

• building a temporary construction camp and expanding<br />

the existing accommodation facilities<br />

• increasing MRM’s mineable reserves from 53 million<br />

tonnes to 115 million tonnes, extending the life of mine<br />

to 2033 at the proposed higher rate of production.<br />

A scoping study conducted in 2010 has confirmed the<br />

development project would not expand the open pit beyond<br />

the current boundary of the bund wall and there is no<br />

intention of further diversions to the <strong>McArthur</strong> <strong>River</strong> or Barney<br />

Creek channels. The map below provides the baseline concept<br />

for the development project.<br />

Basecase<br />

TSF<br />

Upgrade<br />

Existing<br />

TSF<br />

Basecase<br />

OEF<br />

Extension<br />

Existing<br />

North<br />

OEF<br />

Mill<br />

Camp<br />

Existing<br />

Pit<br />

Pit<br />

Expansion<br />

Airstrip<br />

Bund<br />

<strong>McArthur</strong> <strong>River</strong> Channel


The proposed Phase 3 Development Project follows the<br />

conversion to open pit mining which has enabled MRM to<br />

meet all targeted objectives on production, employment,<br />

environmental management and socio-economic benefits<br />

for the region.<br />

In the years since initial open pit mining approvals were<br />

received in October 2006, MRM has maintained its record of<br />

good environmental performance, committed over $7 million<br />

to support the development of the Gulf region through the<br />

MRM Community Benefits Trust and increased indigenous<br />

workforce participation in the operation from 9% to 21%.<br />

MRM achieved a 7% increase in ore mined from 2.1 million<br />

tonnes in 2009 to 2.2 million tonnes of ore in 2010 and a<br />

10% increase in zinc in concentrate from 166,467 to<br />

183,517 tonnes. The volume of bulk concentrate produced<br />

was 384,000 dry metric tonnes.<br />

Development project features<br />

Item<br />

Resource<br />

Current Approved Project<br />

53 million tonnes measured indicated and<br />

inferred<br />

Proposed <strong>McArthur</strong> <strong>River</strong> Mine Phase 3<br />

Development Project<br />

Likely mining reserve of 115 million tonnes total<br />

Mine Life Estimated 21 years from 2006 approvals (2027) Additional 6 Years to 2033<br />

<strong>Mining</strong> method<br />

Open Pit<br />

Dimensions<br />

<strong>Mining</strong> Rate<br />

Capacity<br />

Tailings<br />

Overburden<br />

Emplacement<br />

Facility<br />

Processing<br />

Open pit mine using conventional drilling,<br />

blasting, loading and haulage methods<br />

Length – 1500 metres<br />

Width – 800 metres<br />

Depth – 210 metres<br />

Overall footprint – 103 hectares<br />

2.5 million tonnes of ore per annum<br />

Tailings discharged to Tailings Storage Facility<br />

(TSF)<br />

185 million tonnes overburden emplacement<br />

facility<br />

Grinding and flotation to produce zinc<br />

concentrate<br />

No Change<br />

Length – 1500 metres<br />

Width – 1500 metres<br />

Depth – 410 metres<br />

Overall footprint – 203 hectares<br />

Approximately 5 million tonnes of ore per<br />

annum<br />

Extension to existing TSF or increase height of<br />

existing TSF to create additional capacity.<br />

Extra 500 million tonnes of overburden to be<br />

emplaced in additional sites to be investigated<br />

against a range of criteria.<br />

No Change<br />

Power 20 Mw from a gas fired power station Estimated extra 20 Mw required<br />

Product/year<br />

Transport<br />

Water Management<br />

Workforce<br />

Zinc concentrate – 360,000 dry metric tonnes<br />

(166,000 tonnes of zinc in concentrate)<br />

Concentrate trucked to Bing Bong Loading<br />

Facility and barged offshore for transfer<br />

and shipment<br />

Bore fields supply (if required)<br />

Mine water collected and utilised in the process<br />

Emergency discharge licence in place<br />

440 employees and contractors<br />

Zinc concentrate – 800,000 dry metric tonnes<br />

(368,000 tonnes of zinc in concentrate)<br />

No change in method.<br />

Approximate doubling of concentrate volume<br />

trucked to Bing Bong for shipment<br />

To continue.<br />

Existing water management structures to be<br />

upgraded.<br />

Construction – peak 900 personnel<br />

Operation – approximately 550 personnel<br />

MRM Phase 3 Development Project


Integrated plan<br />

The MRM Phase 3 Development Project is part of a<br />

$900 million (USD900 million) integrated plan involving<br />

MRM and Xstrata Zinc’s European and Canadian<br />

smelters. The plan aims to secure the long-term future<br />

of MRM in the face of a decline in the traditional<br />

international markets for the bulk zinc-lead concentrate<br />

it produces.<br />

The plan involves the increase in mine production at<br />

MRM, the installation of proprietary hydrometallurgy<br />

technology in Xstrata Zinc’s San Juan de Nieva smelter<br />

in Spain and Nordenham smelter in Germany, and<br />

potentially, further improvements in the Brunswick<br />

Lead Smelter in Canada.<br />

It is by increasing production at MRM and reducing unit<br />

costs that the overall project is financially viable.<br />

The Imperial Smelting Furnaces which currently consume<br />

MRM bulk concentrate now produce less than 6% of the<br />

world’s primary zinc and this market is declining. Over<br />

90% of zinc produced globally is produced by electrolytic<br />

smelters which cannot use bulk concentrate.<br />

Xstrata’s proprietary hydrometallurgy technology smelters<br />

are able to use MRM bulk concentrate as a feedstock.<br />

The integrated plan therefore creates a new market for<br />

MRM’s expanded production in addition to the current<br />

customers in Europe and Asia.<br />

The decision to proceed with the proposed development<br />

is subject to the outcomes of ongoing feasibility studies<br />

and associated technology trials in Europe as well as the<br />

environmental assessment for MRM.<br />

Contact Details<br />

Xstrata Zinc Australia, GPO Box 1421 Brisbane, Queensland Australia 4001, Telephone: +61 7 3295 7588<br />

<strong>McArthur</strong> <strong>River</strong> Mine, PO Box 36821 Winnellie, Northern Territory Australia 0821, Telephone: +61 8 8975 8149<br />

Website<br />

www.xstrata.com<br />

www.mcarthurrivermine.com.au


Phase 3 Development Project<br />

Factsheet 2: Tailings<br />

Storage Facility<br />

July 2011<br />

Ongoing investments in TSF management<br />

MRM’s dedication to ensuring the mine causes no adverse<br />

impact on the river or Gulf environments has seen significant<br />

investments made in managing the TSF since 2006.<br />

MRM has invested more than $10 million in the TSF to<br />

protect the environment, including:<br />

• decommissioning and commencement of rehabilitation<br />

of Cell One to minimise risk of seepage into the waterway,<br />

including geochemical assessment of tailings<br />

Cell One is undergoing rehabilitation work, which has included<br />

installation of a 500mm clay cap.<br />

MRM has invested more than $10 million<br />

since 2006 to continuously improve the<br />

performance and management of the<br />

Tailings Storage Facility (TSF).<br />

Tailings are water-based waste products generated through<br />

MRM’s open pit mining operations. Waste water and<br />

solids from the MRM processing plant are currently taken<br />

by pipeline to the TSF on the west side of the Carpentaria<br />

Highway, south of Surprise Creek.<br />

Divided into parts, Cell One of the TSF, which is closest<br />

to Surprise Creek, has been decommissioned and is now<br />

undergoing rehabilitation. The successful rehabilitation<br />

of Cell One serves to inform MRM’s future seepage<br />

management and development plans.<br />

• installation of a sump to intercept surface leachate<br />

draining toward Surprise Creek<br />

• installation of a geo-polymer fill as a physical barrier to<br />

prevent further seepage<br />

• installation of an additional five peizometers within the<br />

TSF embankments for monitoring<br />

• ongoing monitoring of Surprise Creek, ensuring average<br />

zinc, lead, copper and cadmium concentrations at<br />

monitoring locations remain within stipulated guidelines<br />

• undertaking electromagnetic surveys to locate and<br />

manage potential seepage points<br />

• developing additional protection with emergency spillways<br />

• continuing the monitoring program to assess tailings<br />

content, seepage, and integrity of the embankment walls,<br />

pipe and infrastructure.<br />

Cell Two is now used for tailings deposition, with water<br />

re-drawn to the processing plant and recycled for use.<br />

In 2010, MRM increased its recycled water usage by<br />

17% on the previous year to more than 95% of all water<br />

used onsite.<br />

Cell Three is not currently in use for tailings purposes.<br />

It is used as a water management dam for fresh water and<br />

as an overflow point for Cell Two.<br />

For the proposed Phase 3 Development Project, the design of<br />

the expanded TSF will be a key priority of the environmental<br />

assessment.<br />

Surprise Creek is monitored weekly.


MRM – Phase 3 Development Project<br />

TSF considerations for the Phase 3<br />

Development Project<br />

MRM will undertake a thorough environmental assessment<br />

as part of the proposed Phase 3 Development Project<br />

Environmental <strong>Impact</strong> Statement (EIS).<br />

This will include studies into the best methods to manage<br />

and contain tailings for the expanded operations.<br />

MRM will investigate all options to determine the most<br />

sustainable tailings management design and operational<br />

strategy, taking into account all environmental factors.<br />

REHABILITATION OF CELL 1<br />

Work is underway to rehabilitate Cell 1 in line with<br />

the natural surroundings. This involves placing layers<br />

of clay, rock and other materials on the cell closest to<br />

Surprise Creek (as shown below). On completion,<br />

the rehabilitation layers will be as shown:<br />

MRM’s Tailings Storage Facility<br />

GRASS SEED<br />

TOP SOIL – 100mm<br />

CLEAN ROCK –1500mm<br />

CLAY CAP – 500mm<br />

TAILINGS<br />

CELL 1<br />

Closest to Surprise Creek, this cell is<br />

no longer in use, and is currently<br />

undergoing rehabilitation.<br />

CELL 2<br />

Active. Tailings are pumped<br />

into Cell 2 through pipes situated<br />

around the edges, so water<br />

is situated in the middle<br />

away from walls.<br />

SURPRISE CREEK<br />

CELL 2<br />

CELL 1<br />

CARPENTARIA HIGHWAY<br />

Tailings are pumped from<br />

MRM’s processing plant<br />

CELL 3<br />

Not currently in use<br />

for tailings purposes.<br />

Used as a water<br />

management dam<br />

for fresh water catchment<br />

and as an overflow point<br />

for Cell 2.<br />

CELL 3<br />

Water is pumped from the<br />

tailings storage facility back to<br />

the processing plant to be recycled.<br />

Contact Details<br />

Xstrata Zinc Australia, GPO Box 1421 Brisbane,<br />

Queensland Australia 4001, Telephone: +61 7 3295 7588<br />

<strong>McArthur</strong> <strong>River</strong> Mine, PO Box 36821 Winnellie, Northern<br />

Territory Australia 0821, Telephone: +61 8 8975 8149<br />

Website<br />

www.xstrata.com<br />

www.mcarthurrivermine.com.au<br />

For further information contact MRM on:<br />

mrmprojenq@xstratazinc.com.au<br />

Telephone: 1800 211 573


Phase 3 Development Project<br />

Factsheet 3: Overburden<br />

July 2011<br />

Overburden is the term used to describe<br />

the waste material surrounding the zinclead<br />

ore. The overburden includes some<br />

topsoil, clay and a variety of rocks. For<br />

every tonne of ore mined at MRM, there<br />

are five tonnes of overburden mined.<br />

2. Potentially acid forming (PAF) materials – are the types of<br />

rock that, when exposed to air and water, can generate<br />

an acidic water, soluble metals or salts that could impact<br />

the environment.<br />

Overburden is not subject to any mineral processing at the<br />

mine. The different types of overburden have different uses<br />

at the site: clay may be used for building pads and dams;<br />

small rocks used for building roads; large rocks used for<br />

armouring against erosion; and topsoil used for rehabilitation.<br />

Some materials are temporarily stored in stockpiles. Unsuitable<br />

or excess overburden is permanently stored within areas<br />

called Overburden Emplacement Facilities (OEFs).<br />

The proposed Phase 3 Development Project is expected<br />

to generate an extra 500 million tonnes of overburden.<br />

A number of options for its storage, including an expansion<br />

of the existing North OEF, are under review as part of the<br />

environmental planning.<br />

Storing of overburden<br />

OEFs are designed to protect against any environmental<br />

impact. To do this, they must be physically stable in the<br />

long term. The position, height and slope of the OEFs are<br />

important factors in their physical stability.<br />

The most important chemical property of the overburden<br />

is linked to what happens when it oxidises through contact<br />

with air and water. Oxidation of rocks may produce a liquid<br />

called leachate. The nature of this leachate determines which<br />

category of overburden the rock belongs to:<br />

1. Non-acid forming (NAF) materials – about 80% of the<br />

rocks – are chemically stable. When wet with rain, they<br />

will not generate any by-products that could impact<br />

on the environment. Only NAF material is used on the<br />

external faces of all mine structures such as the bund wall.<br />

Rocks are classified<br />

Identifying the ore, overburden and the different types of rock<br />

is important for both the mining operation and environmental<br />

protection.<br />

Geologists check each stage of mining using extensive<br />

studies, geochemical testing, maps, surveys and samples.<br />

They physically walk the face to be mined and mark it up with<br />

coloured paint and tape to differentiate between the ore and<br />

types of overburden.<br />

Separated while digging<br />

Each section of ore and the different types of rock are scooped<br />

up separately by the diggers, and placed into the back of large<br />

trucks. The trucks also identify whether they carry PAF, NAF or<br />

ore material. The type of rock determines where their load is<br />

deposited.


MRM – Phase 3 Development Project<br />

Most goes to the North OEF<br />

The North OEF is where most of the overburden is currently<br />

stored. This area has the capacity to store 185 million tonnes<br />

of waste rock over a 255 hectare footprint to a previously<br />

approved height of 80 metres.<br />

Options are under review to increase the total OEF capacity,<br />

which will examine expansions to the North OEF as well as<br />

additional OEF locations.<br />

The PAF rock is placed in specially constructed cells inside the<br />

core of the North OEF. The cells are completely surrounded<br />

by layers of clay that minimises the amount of air and water<br />

contacting the PAF rock. A layer of NAF material then further<br />

protects the cell from oxidation and erosion. The PAF cells<br />

are located above the 1-in-100 year flood level to ensure<br />

they don’t get wet from floodwaters. The multiple layers of<br />

protection isolate the PAF rocks from the weather and protect<br />

the environment.<br />

The OEFs are extensively monitored<br />

MRM’s environmental monitoring program has demonstrated<br />

the mine has had no adverse impact on the <strong>McArthur</strong> <strong>River</strong><br />

or Gulf environments. The performance of the overburden<br />

facilities is monitored to check:<br />

• water quality and sediments in the North OEF run-off<br />

ponds to make sure rocks are being categorised correctly<br />

and the management strategies are working<br />

• groundwater quality through monitoring bores installed<br />

around the mine site<br />

• physical stability against wind and water erosion.<br />

Specialist testing is also underway to help future management<br />

of overburden. Called a ‘Kinetic Column Leach Test’, this<br />

process simulates the natural weathering of rocks. From<br />

this, MRM can better plan strategies to keep improving the<br />

performance of the overburden facilities.<br />

Cultural heritage is protected<br />

NORTH Overburden<br />

Emplacement Facility<br />

Archaeological<br />

Site MRM4<br />

The shape of the North OEF has been<br />

designed to ensure an archaeological site<br />

is protected. This is the site of a stone<br />

artefact quarry. Custodial elders and<br />

Traditional Owners of the Gurdanji people<br />

and an archaeologist inspected this site<br />

before the North OEF was developed. It is<br />

now protected as a site of archaeological<br />

significance.<br />

C reek<br />

Barney<br />

Creek<br />

B<br />

<strong>McArthur</strong><br />

R iver<br />

Contact Details<br />

Xstrata Zinc Australia, GPO Box 1421 Brisbane,<br />

Queensland Australia 4001, Telephone: +61 7 3295 7588<br />

<strong>McArthur</strong> <strong>River</strong> Mine, PO Box 36821 Winnellie, Northern<br />

Territory Australia 0821, Telephone: +61 8 8975 8149<br />

Website<br />

www.xstrata.com<br />

www.mcarthurrivermine.com.au<br />

For further information contact MRM on:<br />

mrmprojenq@xstratazinc.com.au<br />

Telephone: 1800 211 573


Cultural Heritage<br />

Management<br />

August 2011<br />

<strong>McArthur</strong> <strong>River</strong> Mine (MRM) is situated<br />

on the traditional lands of the Gurdanji,<br />

Binbinga and Yanyuwa people. Today,<br />

these lands continue to be important to<br />

these and other local traditional language<br />

groups including Garawa, Mara and<br />

Alyawa people.<br />

MRM is an active member of the community and works closely<br />

with Traditional Owners to preserve the cultural heritage of the<br />

local Aboriginal people. We respect local customs and values and<br />

safeguard sacred sites within the footprint of our operations.<br />

MRM’s commitment to cultural heritage management is guided<br />

by Xstrata plc’s Business Principles, which uphold and promote<br />

human rights within our areas of influence and respect the<br />

cultural heritage, customs and rights of communities.<br />

The way in which we deliver on this commitment is articulated<br />

in our Cultural Recognition Policy. This policy provides a mandate<br />

for cross-cultural respect and awareness through which MRM<br />

has established valued relationships with local Aboriginal<br />

people and Traditional Owners. It also ensures our workforce<br />

understands the traditional rights and culture of Indigenous<br />

people and oversees a number of systems and processes to<br />

ensure sites of cultural significance, and matters of cultural<br />

interest, are identified and preserved.<br />

MRM’s policy to contribute to the social and economic<br />

development of the communities in which we operate also<br />

defines our commitment to working openly, closely and<br />

transparently with our stakeholders throughout the lifecycle of<br />

our operations.<br />

17 sites of cultural significance<br />

Extensive studies, including archaeological and ethnographic<br />

surveys, have been undertaken to identify and protect<br />

culturally significant sites within MRM’s lease area. These<br />

studies have identified 17 sites of cultural significance that<br />

either have a direct link to dreamtime stories or are important<br />

to the history and culture of the local Aboriginal people.<br />

These sites are registered with the Aboriginal Area Protection<br />

Authority. This statutory authority of the Northern Territory<br />

Government was established under complementary NT<br />

legislation in accordance with the Commonwealth Land<br />

Rights Act 1976. The AAPA has issued authority certificates<br />

for all of the mine’s operational areas in accordance with the<br />

Northern Territory Aboriginal Sacred Sites Act 1989.<br />

MRM takes its responsibility seriously for the care and protection<br />

of scared sites or sites of significance located within its operations.<br />

These areas are fenced and sign posted, as shown in the image above.


Cultural Heritage management<br />

Management initiatives<br />

MRM preserves and manages the identified sites in line with<br />

AAPA conditions. These call for:<br />

• Entry to sacred sites to be prevented<br />

• No works that will disturb the ground at sacred sites<br />

• Prevention of damage to any vegetation at sacred sites<br />

other than for specified purposes<br />

• No material to be stored or machinery parked near<br />

the sacred sites<br />

• Protective fences and signage to be erected around<br />

sacred sites<br />

• Aboriginal custodians of the sacred sites to be notified<br />

and provided with the opportunity to supervise any<br />

restoration works carried out on the site<br />

• Access to the sites to be permitted for cultural purposes.<br />

Clearing permits are required by any employee or contractor<br />

undertaking works which may disturb the ground or vegetation.<br />

This requires workers to complete an ‘Application and<br />

Authorisation for Proposed Land Clearance’ form, which<br />

then requires approval from MRM’s Community Relations,<br />

Environment and Survey Departments. As a further safeguard,<br />

sacred and significant sites are clearly signposted throughout<br />

the lease area.<br />

Cultural awareness training<br />

All staff at MRM have an important role to play in cultural<br />

heritage management. Cross Cultural Awareness Training is<br />

mandatory for all employees and contractors.<br />

This specially designed course developed by the mine, in<br />

consultation with Gurdanji Traditional Owners, provides<br />

information on the history, beliefs, traditions, music and<br />

sacred sites, in addition providing cultural awareness of the<br />

other three language groups within the region. To ensure<br />

we provide the best possible training our course is delivered<br />

by a local Indigenous person from Borroloola. It also clearly<br />

outlines the expectations and responsibilities of all employees<br />

and contractors in managing cultural heritage, respecting and<br />

understanding cultural norms of their Indigenous workmates<br />

and their relationships within the local community.<br />

As part of this program, MRM commissioned a DVD<br />

production which recorded three senior Gurdanji Traditional<br />

Owners telling stories of the ‘Kudjiga’ – the Dreamtime –<br />

for their country. This DVD is an intergal part within the<br />

training program.<br />

Site access for cultural purposes<br />

MRM understands that access to these sites is an important<br />

part of preserving the cultural heritage of the local Aboriginal<br />

people and we work closely with Traditional Owners to<br />

organise regular site visits.<br />

As an operational mine, the health and safety of all employees<br />

and visitors is our highest priority. Therefore, anyone seeking<br />

access to the mine site for cultural purposes is asked to provide<br />

at least 48 hours notice of the visit to the MRM Community<br />

Relations department. That way, we can make sure it is safe<br />

to enter the area nominated or can make arrangements when<br />

necessary.<br />

Cultural heritage management initiative<br />

Number of employees undertaking Cross Cultural<br />

Awareness Training<br />

Number of incidents of disturbance of cultural<br />

heritage sites<br />

Number of meetings with mine executive and<br />

Traditional Owners including site visits<br />

Requests (and approvals) for access for<br />

cultural purposes<br />

Sponsorships and donations supporting cultural heritage activities:<br />

• NAIDOC Week celebrations<br />

• Boonu Boonu Cultural Festival<br />

• Women’s Business trip.<br />

Barramundi dreaming<br />

2010 results<br />

Barramundi Dreaming is one of the sacred sites located on the mine<br />

site. Its story is shared with all staff and contractors through our<br />

Cross Cultural Awareness Training so they better understand, and<br />

respect, the cultural and historical significance of the area to the local<br />

language groups.<br />

This dreaming story about the Barramundi begins in a location<br />

known by its bush name as Kamkamka. In the story, the Barramundi<br />

travelled down to Damalani, Bibibi and lligidini, before arriving at the<br />

place where he now rests.<br />

The Barramundi held a ceremony on the site, and afterwards he said;<br />

“I’ve got a ceremony here, and I will stay here to protect it.” So the<br />

Barramundi stayed, as did the ceremony.<br />

When people visit the location they must sing and dance the<br />

Barramundi ceremony - they must follow that dreamtime story for<br />

the Barramundi.<br />

Extract of the story told by Traditional Owner, Billy Coolibah, on<br />

Gurdanji cultural heritage DVD.<br />

38<br />

0<br />

8<br />

0<br />

Contact Details<br />

Xstrata Zinc Australia, GPO Box 1421 Brisbane,<br />

Queensland Australia 4001, Telephone: +61 7 3295 7588<br />

<strong>McArthur</strong> <strong>River</strong> Mine, PO Box 36821 Winnellie, Northern<br />

Territory Australia 0821, Telephone: +61 8 8975 8149<br />

Website<br />

www.xstrata.com<br />

www.mcarthurrivermine.com.au<br />

For further information contact MRM on:<br />

mrmprojenq@xstratazinc.com.au<br />

Telephone: 1800 211 573


Regional<br />

Development<br />

August 2011<br />

As one of the largest mining operations in<br />

the Northern Territory, <strong>McArthur</strong> <strong>River</strong> Mine<br />

(MRM) has been a catalyst for economic<br />

and social development in the region.<br />

We are committed to the social and economic development<br />

of sustainable communities associated with our operations.<br />

This commitment is founded in Xstrata’s Business Principles<br />

and guided by the group’s Sustainable Development Policy.<br />

Through this policy we balance the social, environmental and<br />

economic considerations in how we manage our business.<br />

In relation to regional development, we specifically aim to<br />

ensure our activities contribute to the sustainable growth of<br />

our local communities so they may flourish independently<br />

even after mining operations cease. We achieve this through<br />

sourcing goods and services from local companies, providing<br />

training and employment opportunities for local people,<br />

investing in community programs and promoting local business<br />

development.<br />

Benefits<br />

With MRM’s support, the targeted economic benefits for the<br />

region include:<br />

• increased local employment including traineeships for<br />

Indigenous people<br />

• an expanded economic base to include new viable local<br />

enterprises.<br />

At a social level, the advantages targeted include:<br />

• improved health outcomes through higher-quality local<br />

medical facilities<br />

• improved quality of life through a safer, healthier<br />

community environment<br />

• higher education attendance and completion rates<br />

• effective management and where desired, preservation,<br />

of the natural environment<br />

• the maintenance and protection of traditional culture.<br />

Local procurement<br />

It is our policy to use local businesses where they are technically<br />

capable and commercially competitive. We also prefer to<br />

work with companies who share our values to work ethically,<br />

responsibly, openly and to work together and with others.<br />

All suppliers need to be accredited by MRM before contracts are<br />

issued. Accreditation is a form of agreement between MRM and<br />

the supplier and ensures we are partnering with organisations who:<br />

• enforce high standards of occupational health and safety<br />

for their employees and contractors<br />

• have regard to environmental considerations when<br />

manufacturing, packing or transporting their goods<br />

• respect human rights<br />

• are appropriately insured<br />

• are providing products or services that are fit for purpose.<br />

Our procurement procedures are typical of business practice and<br />

generally involve a tendering and negotiation process,<br />

and contract management.<br />

There are already good examples of how MRM’s operations<br />

have encouraged organisations to establish operations in the<br />

Northern Territory and, in turn, create employment and career<br />

opportunities for local people. MRM has also enabled local<br />

businesses to expand their service offerings to supply specific<br />

services such as transport and freight logistics, labour hire and<br />

specialist maintenance services.<br />

Grant funding from the MRM Community Benefits Trust is<br />

supporting the commercial development of local art.


REGIONAL DEVELOPMENT<br />

Corporate <strong>Social</strong> Involvement programs<br />

MRM’s longstanding community partnerships have been a<br />

catalyst for positive regional growth, linking MRM activities to<br />

the long-term social development objectives of the Borroloola<br />

community. These range from sponsoring sporting and cultural<br />

events, to the development of new community infrastructure.<br />

The purpose of these partnerships is to strengthen the capacity<br />

of the local community through action in the areas of enterprise<br />

development and job creation, education, arts and culture,<br />

health, environment and social and community issues. Our<br />

primary vehicle for achieving these outcomes is the MRM<br />

Community Benefits Trust, which aims to address the issues<br />

and needs to build the long-term sustainability of the<br />

Borroloola region. MRM also provides annually a range of other<br />

sponsorship and community donations which address shortterm<br />

needs and opportunities.<br />

For more information, please see the MRM Community<br />

Benefits Trust Project Funding Guidelines available online.<br />

Employment and education<br />

MRM is focused on building capacity within the region by<br />

training and sourcing employees from Borroloola and other<br />

communities in the Northern Territory. Our involvement in<br />

building a job-ready base of local employees commences<br />

while young people are still in the school system, partnering<br />

with government and community organisations to deliver<br />

work experience programs, school-based apprenticeships<br />

and a tertiary scholarship program. MRM has developed an<br />

Indigenous employment and training strategy to help people<br />

gain real jobs with the mine. For more information, please see<br />

MRM’s Pathways to Employment and Indigenous Traineeship<br />

brochures available online.<br />

Borroloola local Marlene Karkadoo has established a new business<br />

to provide cultural awareness training at MRM.<br />

LOCAL PARTNERSHIPS:<br />

MARLENE KARKADOO AND MRM<br />

MRM engaged Borroloola local Marlene Karkadoo to undertake<br />

Cross Cultural Awareness Training at the mine.<br />

The training program supports the mine’s Indigenous Employment<br />

Strategy by creating a working environment in which there is<br />

greater understanding of local culture.<br />

Marlene is now delivering this program as an external contractor,<br />

demonstrating one of the way’s MRM supports the development<br />

of new small business enterprises in the Gulf Region.<br />

MRM General Manager Ettienne Moller said Marlene’s input into<br />

the training sessions had supported the continued improvement<br />

of the program.<br />

“We have a strong, dedicated base of Indigenous workers at<br />

the mine and these sorts of training programs help us all to<br />

understand each other.”<br />

Marlene said she was enjoying the opportunity to work with<br />

MRM in this area.<br />

“It’s a good chance to put my studies into practice and to share<br />

knowledge of local customs and beliefs with the employees and<br />

contractors from MRM. The opportunity to continue to develop<br />

my career is invaluable.”<br />

2010 Outcomes<br />

Regional development initiatives<br />

2010 results<br />

Local procurement: Borroloola<br />

Local procurement: Northern Territory<br />

Local training and education<br />

$7 million<br />

$60 million<br />

13 apprenticeships<br />

20 trainees (Certificate II in Entry into <strong>Mining</strong>)<br />

% of Indigenous workforce participation 21%<br />

Direct benefit to the Australian economy<br />

Corporate <strong>Social</strong> Involvement programs<br />

Government taxes and charges<br />

$138 million<br />

$1.4 million<br />

$4.2 milion<br />

Contact Details<br />

Xstrata Zinc Australia, GPO Box 1421 Brisbane,<br />

Queensland Australia 4001, Telephone: +61 7 3295 7588<br />

<strong>McArthur</strong> <strong>River</strong> Mine, PO Box 36821 Winnellie, Northern<br />

Territory Australia 0821, Telephone: +61 8 8975 8149<br />

Website<br />

www.xstrata.com<br />

www.mcarthurrivermine.com.au<br />

For further information contact MRM on:<br />

mrmprojenq@xstratazinc.com.au<br />

Telephone: 1800 211 573


Pathways to<br />

Employment<br />

August 2011<br />

Trainee program<br />

MRM has developed an Indigenous<br />

employment and training strategy that<br />

helps people to gain real jobs with the mine.<br />

This strategy details a pathway that begins with programs<br />

to get ready for work and moves on to entry-level or formal<br />

training and career development. It also reflects opportunities<br />

for skilled workers to seek employment with MRM.<br />

The strategy is founded on Xstrata’s global Sustainable<br />

Development Standards, and research into best practice at<br />

both a national and international level. It has been developed<br />

in association with the Traditional Owners, Borroloola School,<br />

Northern Territory and Australian Governments, training<br />

providers and recruitment services.<br />

Our goal is to sustain and grow Indigenous workforce<br />

participation at MRM above 20 percent of the total permanent<br />

employee base.<br />

MRM’s trainee program offers entry-level opportunities and<br />

training that qualifies people with the skills and experience<br />

needed for jobs within the national mining industry. We look<br />

for men and women who are:<br />

• Unskilled or semi-skilled workers<br />

• School leavers<br />

• Currently unemployed<br />

• Interested in furthering their literacy and numeracy skills<br />

• Interested in and determined to work.<br />

The program opens up nine alternative career paths within<br />

MRM in mining, environmental management, administration<br />

and services such as catering. For trainees and their community,<br />

involvement brings better education, lifestyle and health<br />

improvements, confidence and pride in achievement.<br />

MRM is committed to developing relationships of mutual<br />

understanding and respect with the Indigenous people of the<br />

Gulf region. We recognise the desire of Indigenous people to<br />

participate in the regional economy and will actively facilitate<br />

employment and training opportunities.<br />

We acknowledge a responsibility, as the major employer in<br />

the region, to increase Indigenous workforce participation<br />

and in so doing, provide benefits both to the community and<br />

to the mine.<br />

Our strategy targets Indigenous residents of the region including<br />

the Gurdanji, Mara, Garawa and Yanyuwa people, as well as<br />

Indigenous residents of other regions on a fly-in, fly-out basis.<br />

There are two key ways to obtain work at MRM:<br />

1. Trainee program<br />

2. Direct recruitment for job vacancies.<br />

Once employed, there are numerous pathways to interesting<br />

jobs and careers within a global mining company.<br />

MRM’s Heavy Machinery Simulator in use in the trainee program.


pathways to employment<br />

The program involves:<br />

• Pre-employment: Getting people work-ready with the<br />

skills, experience and confidence needed to move into a<br />

full time job. This includes work experience, work-ready<br />

induction training and cultural awareness programs.<br />

• Entry-level training: Paid, on-the-job training with MRM<br />

that provide trainees with experience in a range of roles<br />

on site from which they can then decide the direction<br />

they would like to pursue in a permanent position. This<br />

includes time on the popular heavy machinery simulator<br />

to see if operating big vehicles and equipment is what<br />

interests them most.<br />

• Career development: Mentoring and support programs<br />

to help retain Indigenous employees at MRM and build<br />

careers.<br />

At the end of the trainee program, trainees are offered<br />

permanent positions in the areas for which they are both<br />

best suited and have an interest in. For some, this has<br />

included moving into apprenticeships to gain formal trade<br />

qualifications.<br />

Direct recruitment for job vacancies<br />

These positions suit skilled and experienced workers including<br />

professionals, trades apprentices, certificate or skill-based<br />

ticket holders and operators, or men and women with work<br />

experience in mining or related industries.<br />

Positions available within MRM are advertised online<br />

(www.xstrata.com/careers) and in newspapers. They are<br />

also available through selected recruitment consultancies.<br />

Locally, opportunities are posted on community noticeboards.<br />

In addition, MRM’s participation in local events such as the<br />

Borroloola Show and relationships with local organisations<br />

also aims to raise awareness of the growth occurring at MRM,<br />

the job opportunities arising and the process to apply.<br />

Recruitment processes have been designed to be culturally<br />

appropriate. Our recruitment assistance package helps<br />

Indigenous applicants through the process and MRM’s<br />

Indigenous Employment Coordinator works both directly<br />

with applicants and external recruitment consultancies to<br />

offer additional support.<br />

Once employed, MRM is committed to helping Indigenous<br />

employees stay with the mine by ensuring policies reflect<br />

the cultural diversity and needs of the workforce, providing<br />

cultural awareness training for all employees and contractors<br />

and coaching supervisors on effective leadership techniques.<br />

Long term, MRM takes into account individual interests,<br />

strengths and needs to support career development for all<br />

employees. This includes:<br />

• preparing individual career development plans that are<br />

reviewed each year<br />

• participating in industry, Northern Territory and Australian<br />

Government development programs<br />

• encouraging tertiary or certificate studies where possible<br />

or further professional development.<br />

For more information or to submit an application please contact:<br />

08 8975 8882 or go to www.mcarthurrivermine.com.au/<br />

employment_overview.cfm<br />

MRM’s Indigenous recruitment strategy provides up to nine career paths, including environmental management.<br />

Contact Details<br />

Xstrata Zinc Australia, GPO Box 1421 Brisbane,<br />

Queensland Australia 4001, Telephone: +61 7 3295 7588<br />

<strong>McArthur</strong> <strong>River</strong> Mine, PO Box 36821 Winnellie, Northern<br />

Territory Australia 0821, Telephone: +61 8 8975 8149<br />

Website<br />

www.xstrata.com<br />

www.mcarthurrivermine.com.au<br />

Information<br />

mrmprojenq@xstratazinc.com.au<br />

Telephone: 1800 211 573


Marine monitoring<br />

August 2011<br />

Each year, the seawater, seagrass, sediments<br />

and various molluscs from around the Bing<br />

Bong coast and Sir Edward Pellew Islands<br />

are tested to see if MRM’s operations have<br />

impacted in any way.<br />

The results from the latest round of studies in November<br />

2010 show their quality is high and safe when compared<br />

with national health and food standards.<br />

This is consistent with previous years’ results from the<br />

monitoring which has been undertaken annually since 1998,<br />

with early monitoring occurring in 1992 and 1993, before the<br />

mine began operations. These early results set background<br />

benchmark levels that samples are now compared against.<br />

Copper, zinc, cadmium, lead, nickel and arsenic are all<br />

naturally occurring substances within this region.<br />

Independent scientists from the Australian Institute of Marine<br />

Science (AIMS) collected samples from 14 sites around the Gulf,<br />

including seven around the Islands as recommended by local<br />

Traditional Owners. Their report also acknowledges the<br />

cooperation of representatives of the Lianthawirriyarra<br />

Sea Rangers.<br />

Overall, the study found there was no measurable impact on<br />

seawater, surface sediments, oysters or seagrass along the<br />

Bing Bong coast, Sir Edward Pellew Islands and the eastern<br />

beach area adjacent to the swing basin.<br />

The marine monitoring program is one of a number of<br />

programs conducted each year by MRM to ensure the health<br />

of the Gulf environment. Others include the annual migratory<br />

bird survey, a more detailed seagrass study, and site based dust<br />

and water management programs.<br />

109<br />

Rocky Reef<br />

SEPI 12<br />

SEPI 9<br />

SEPI 10<br />

Centre Island<br />

SEPI 11<br />

I N D I A N O C E A N<br />

G u l f of C a rpe n t a r i a<br />

8<br />

BB<br />

West<br />

BB<br />

East<br />

North Island<br />

SEPI 8<br />

Transhipment<br />

area<br />

117<br />

105<br />

104<br />

Crocodile<br />

Point<br />

Sir Edward Pellew Group<br />

SEPI 1<br />

107<br />

SEPI 3A<br />

Figure 2: Sites in the Sir Edward Pellew Islands where samples are annually collected<br />

for testing.<br />

GB<br />

Bing Bong<br />

loading facility<br />

Figure 1: Sites along the Bing Bong coast and Sir Edward Pellew Islands where<br />

samples are annually collected for testing.


Concentration<br />

Seawater<br />

Unfiltered and filtered seawater is collected from a depth of<br />

around 50 centimetres. The samples show the quality of the<br />

water was the same as natural background levels and typical<br />

for inshore marine waters and estuaries in the late dry season.<br />

Importantly, this included the concentration of metals in the<br />

water (nickel, zinc, cadmium and lead) which was well under<br />

the Australian and New Zealand Environment Conservation<br />

Council (ANZECC) (2000) default trigger values for 99%<br />

protection – the highest level of ecosystem protection.<br />

The trend results show that these concentrations have<br />

remained below this protection level since 1998.<br />

100<br />

10<br />

1<br />

0.1<br />

0.01<br />

0.001<br />

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />

TSS mg/L<br />

Copper ug/L<br />

Zinc ug/L<br />

Cadmium ug/L<br />

Lead ug/L<br />

Figure 3: Annual average total metal concentrations and total suspended<br />

solids (TSS) in unfiltered seawater samples from Bing Bong coastal sites<br />

1998 to 2010. No studies were conducted in 2006 due to access issues.<br />

Sediment<br />

Seafloor and beach sediments showed metal, arsenic and<br />

lead isotope ratios are the same as natural levels and<br />

well below the ANZECC (2000) Interim Sediment Quality<br />

Guideline – Low values.<br />

The concentrations of copper, zinc, cadmium and lead in<br />

sediment from the beach east of the Bing Bong loading<br />

facility were the lowest since annual marine monitoring<br />

began in 1998.<br />

The beach immediately to the west of the man-made swing<br />

basin had higher levels of these metals but they are still<br />

lower than the ANZECC quality guideline. Improvements<br />

in dust monitoring and management at Bing Bong loading<br />

facility, the replacement of the roof of the Aburri barge in<br />

2010 and planned improvements to the storage shed in<br />

2011 are expected to help reduce levels of metals within<br />

this western beach area in the future.<br />

Similarly, lead isotope ratios from the western beach<br />

sediments show they contain lead and zinc derived from<br />

the MRM bulk concentrate. However, the levels are still<br />

lower than the quality guideline.<br />

Lead isotopes in other Bing Bong and all Sir Edward Pellew<br />

Island sediments were at natural background values meaning<br />

lead found in these areas is not sourced from the MRM<br />

deposit upstream or bulk concentrate.<br />

1000.00<br />

100.00<br />

Concentration (mg/kg dry wt)<br />

10.00<br />

1.00<br />

0.10<br />

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />

Copper ug/L<br />

Zinc ug/L<br />

Cadmium ug/L<br />

Lead ug/L<br />

Figure 4: Annual average metal concentrations in surface sediments<br />

(


Oysters<br />

Oysters are collected from rocks using a hammer and chisel<br />

at sites where local people regularly gather them for food.<br />

The metal concentrations in the two types of oysters tested were<br />

in line with previous monitoring programs. The cadmium, lead<br />

and inorganic arsenic concentrations from all sites were below<br />

the ANZ Food Standards (2009) Maximum Levels for molluscs.<br />

The annual average concentrations of copper, zinc, cadmium<br />

and lead in oysters from Bing Bong have remained constant<br />

since they were first identified and tested in 2007 and less<br />

than those levels first recorded in 1998.<br />

There were no differences in the range of metal concentrations<br />

between oysters from the Bing Bong and Sir Edward Pellew<br />

Islands sites except for higher copper and zinc concentrations<br />

on the islands.<br />

The concentrations of cadmium and lead in both species of<br />

oysters at all sites were below the ANZ Food Standards Code<br />

(2009) Maximum Levels. The lead concentrations at all sites<br />

were too low to determine isotope ratios and therefore<br />

their source.<br />

100.00<br />

10.00<br />

Concentration (mg/kg dry wt)<br />

1.00<br />

0.10<br />

0.01<br />

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />

Copper ug/L<br />

Zinc ug/L<br />

Cadmium ug/L<br />

Lead ug/L<br />

Figure 5: Annual average metal concentrations in Bing Bong oysters<br />

1998 – 2010. No studies were conducted in 2006 due to access issues.


Molluscs<br />

Two types of molluscs are tested and both are shell bound<br />

sea snails: Terebralia semistriata, which is also known as a<br />

‘mud creeper’, and Telescopium telescopium, or ‘telescope<br />

snail’. They are taken from the mangroves on the beach west<br />

of the Bing Bong loading facility. Interestingly, these molluscs<br />

are not found on the beach east of the loading facility.<br />

This year’s results showed the molluscs had elevated levels<br />

of lead and zinc which tests show comes from the MRM<br />

bulk concentrate. The cadmium, lead and inorganic arsenic<br />

concentrations in molluscs were, however, below the ANZ<br />

Food Standards (2009) Maximum Levels for molluscs.<br />

Seagrass<br />

Seagrass collected from three sites along the Bing Bong<br />

coast found that metal, arsenic and lead isotope ratios in<br />

leaves and roots were within the ranges reported since<br />

2002 for this and two other species. The lead isotope<br />

ratios were in line with background seawater in the<br />

Bing Bong area.<br />

Since the loss of the seagrass beds in the 2001 cyclones,<br />

the seagrass community structure has been re-establishing<br />

at these sites which has meant it has not always been<br />

possible to collect an appropriate amount of the same<br />

species for sampling each year.<br />

100.00<br />

Concentration (mg/kg wet wt)<br />

10.00<br />

1.00<br />

0.10<br />

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />

Copper ug/L<br />

Zinc ug/L<br />

Cadmium ug/L<br />

Lead ug/L<br />

Figure 6: Metal concentrations in Terebrailia semistriata from mangroves west<br />

of loadout facility, 1998 – 2010. No studies were conducted in 2006 due to<br />

access issues.<br />

Contact Details<br />

Xstrata Zinc Australia, GPO Box 1421 Brisbane,<br />

Queensland Australia 4001, Telephone: +61 7 3295 7588<br />

<strong>McArthur</strong> <strong>River</strong> Mine, PO Box 36821 Winnellie, Northern<br />

Territory Australia 0821, Telephone: +61 8 8975 8149<br />

Website<br />

www.xstrata.com<br />

www.mcarthurrivermine.com.au<br />

For further information contact MRM on:<br />

mrmprojenq@xstratazinc.com.au<br />

Telephone: 1800 211 573


Rehabilitation of <strong>McArthur</strong><br />

<strong>River</strong> and Barney Creek<br />

August 2011<br />

Two years after completion of the project<br />

to convert from underground to open pit<br />

mining operations, <strong>McArthur</strong> <strong>River</strong> Mine<br />

has undertaken all initial rehabilitation<br />

of the <strong>McArthur</strong> <strong>River</strong> and Barney<br />

Creek channels as part of a long-term<br />

rehabilitation strategy.<br />

In an effort to further assist rapid re-establishment of the<br />

riverine habitats, we are continuing to plant more seedlings<br />

and conduct more direct seeding of the channels.<br />

While the Phase 3 Development Project will not require<br />

further rechannelling of <strong>McArthur</strong> <strong>River</strong> or Barney Creek,<br />

our committment to return the environment to the form<br />

and function of its original state is best demonstrated with<br />

rehabilitation works done to date.<br />

MRM’s intensive rehabilitation program continues to show<br />

positive results.<br />

Key facts<br />

• 80,000 tube-stock plants have been planted along the<br />

diverted <strong>McArthur</strong> <strong>River</strong> and Barney Creek, more than<br />

double the 35,000 originally planned.<br />

• More than 15,000 fish representing 46 species have been<br />

captured and tagged since 2006 and there is evidence that<br />

migration is occurring in the channels.<br />

• The rechannelling has been effective in establishing a<br />

habitat supportive of the endangered Freshwater Sawfish<br />

and a wide variety of other species.<br />

• More than 48,380 riparian bird observations have been<br />

made since 2006 involving 138 bird species, including<br />

the purple-crowned fairy wren and the buff sided robin.<br />

The rehabilitation of <strong>McArthur</strong> <strong>River</strong> and Barney Creek<br />

remains a high priority for MRM, with the following key<br />

activities already completed to re-establish the ecosystems:<br />

• Large woody debris was placed along the channel bed<br />

in an additional 35 locations in 2010 to provide microhabitats<br />

for fish. Improved diversity, size and composition<br />

of fish species were found as a result.<br />

• The river banks were revegetated using seeds and<br />

seedlings from local species already growing along the<br />

banks such as Melaleucas, Eucalyptuses and Casuarinas.<br />

• Appropriate soils and fine sediments were used on the<br />

channel banks to promote root development.<br />

• Rocky crevices and banks were recreated.<br />

• Plants and weeds were maintained, monitored and<br />

replaced as necessary.<br />

10 steps in rehabilitation strategy<br />

1. Site surveys<br />

2. Site clearing<br />

3. Topsoil and vegetation recovery<br />

4. Topsoil infilling of the rock lined batter slopes<br />

5. Placement of large woody debris<br />

6. Planting of seeds and tube-stock from a selection<br />

of local species<br />

7. Fertiliser application<br />

8. Maintenance activities<br />

9. Monitoring<br />

Two years on from the successful diversion of the <strong>McArthur</strong><br />

<strong>River</strong>, MRM’s intensive rehabilitation program is continuing to<br />

show positive results.<br />

Since 2008, direct seeding of the <strong>McArthur</strong> <strong>River</strong> channel<br />

has occurred twice and approximately 80,000 tube-stock<br />

planted. This figure is more than double the 35,000 tubestock<br />

originally committed as part of the project’s Public<br />

Environmental Report for the open pit project.<br />

In the Barney Creek area alone, MRM has planted<br />

approximately 27,000 trees since 2007, with some plants now<br />

up to nine metres in height after having the benefit of one<br />

more growing year than the <strong>McArthur</strong> <strong>River</strong> rehabilitation.


MRM – Phase 3 Development Project<br />

Monitoring to check progress<br />

The re-alignment of the <strong>McArthur</strong> <strong>River</strong> channel was<br />

constructed to imitate the form and function of the existing<br />

river as closely as possible, and annual monitoring results<br />

confirm the area is improving each year with MRM’s<br />

rehabilitation efforts.<br />

MRM is starting to see a positive trend of animal and plant life<br />

returning, which is now populating the beds and banks of the<br />

new river alignment. Importantly, fish monitoring has shown<br />

that Freshwater Sawfish and other species are travelling<br />

through the new channel.<br />

1. Rehabilitation is successfully underway at the <strong>McArthur</strong> <strong>River</strong> and Barney Creek channels.<br />

Barney Creek early 2008<br />

Barney Creek early 2011<br />

<strong>McArthur</strong> <strong>River</strong> early 2008 <strong>McArthur</strong> <strong>River</strong> early 2011<br />

2. More than 80,000 tube-stock plants and trees have been<br />

planted along the <strong>McArthur</strong> <strong>River</strong> and Barney Creek<br />

banks, which is double the 35,000 originally planned.<br />

3. Monitoring results show the<br />

areas being rehabilitated are<br />

improving each year.<br />

The river banks are planted using seeds<br />

and seedlings grown in MRM’s nursery.<br />

MRM plants local species that already<br />

grow along the banks.<br />

MRM now uses special ‘irrigation sleds’ to<br />

water tube-stock which allows planting in<br />

the dry season and gives rehabilitation the<br />

best possible start.<br />

Water quality and sediment monitoring is<br />

undertaken regularly. More than 15,000<br />

fish from 45 species have been tagged and<br />

monitoring shows the fish are migrating<br />

along the waterways.<br />

Contact Details<br />

Xstrata Zinc Australia, GPO Box 1421 Brisbane,<br />

Queensland Australia 4001, Telephone: +61 7 3295 7588<br />

<strong>McArthur</strong> <strong>River</strong> Mine, PO Box 36821 Winnellie, Northern<br />

Territory Australia 0821, Telephone: +61 8 8975 8149<br />

Website<br />

www.xstrata.com<br />

www.mcarthurrivermine.com.au<br />

For further information contact MRM on:<br />

mrmprojenq@xstratazinc.com.au<br />

Telephone: 1800 211 573


COMMUNITY<br />

MEETING<br />

Ettienne Moller, General Manager of <strong>McArthur</strong> <strong>River</strong><br />

Mine, extends an invitation to members of the Borroloola<br />

community to attend a meeting to hear about the latest<br />

developments at the mine including:<br />

• Phase 3 development project<br />

• environmental monitoring<br />

• community benefits<br />

• Indigenous employment<br />

Where: Breezeway, Roper Gulf Shire Offices<br />

When: Tuesday, 22 March 2011<br />

Time: 9:30 am<br />

For further information visit www.mcarthurrivermine.com.au or phone<br />

Senior Community Relations Advisor, Kirsty Hogarth on (08) 8975 8179.<br />

MRM is committed to working in partnership with employees, suppliers,<br />

customers, the community of the local Borroloola region, the Northern Territory<br />

and Australian Governments and all other stakeholders based on integrity,<br />

cooperation, transparency and mutual value creation.


MEMORANDUM<br />

mrmprojenq@xstratazinc.com.au MAY 2011 EDITION 17<br />

Phase 3 Development Project: securing MRM’s future<br />

People<br />

In March, Xstrata Zinc announced it is<br />

investigating an integrated development<br />

plan involving its European and<br />

Canadian smelters to increase capacity<br />

at <strong>McArthur</strong> <strong>River</strong> Mine (MRM) in the<br />

Northern Territory, Australia. The plan<br />

aims to secure the long-term future of<br />

the operation in the face of a decline in<br />

the traditional international markets for<br />

the bulk zinc/lead concentrate produced<br />

by the mine.<br />

IN THIS edition<br />

MRM’s 15 year club joined by<br />

Robert James and Greg Bateson<br />

4<br />

Environment<br />

5<br />

Migratory bird and seagrass surveys<br />

complete<br />

The $900 million plan involves an increase in mine production<br />

at MRM, the installation of proprietary hydrometallurgy<br />

technology in Xstrata Zinc’s San Juan de Nieva smelter in Spain<br />

and Nordenham smelter in Germany, and potentially, further<br />

improvements in the Brunswick Lead Smelter in Canada.<br />

Xstrata Zinc Australia Chief Operating Officer Mr Brian Hearne<br />

said the feasibility of this integrated plan is dependent on the<br />

development of MRM.<br />

“It is only by increasing production at MRM and reducing unit<br />

costs that the overall project is financially viable,” Brian said.<br />

“We are prepared to increase smelter capacity and invest in this<br />

plan in order to create a new, guaranteed market for MRM bulk<br />

concentrate and extend the life of mine by six years to 2033.”<br />

The proposal involves increasing MRM mine production to<br />

approximately 5 million tonnes per year resulting in an increase in<br />

bulk zinc/lead concentrate volume to 800,000 tonnes per annum.<br />

Economy 9<br />

Careful planning results in strong<br />

mill performance<br />

(continued on page 3)<br />

Community<br />

$1.6 million in new grants<br />

committed by MRM Community<br />

Benefits Trust<br />

11


A message from the General Manager<br />

In March, Xstrata Zinc announced<br />

its plans to investigate the further<br />

development of MRM.<br />

Various options have been canvassed over the years for establishing<br />

a refinery to process MRM bulk concentrate. In 2001, a range<br />

of studies were conducted into the possibility of a refinery on site<br />

at MRM which would have also necessitated a power station and<br />

a weir on the Glyde <strong>River</strong>.<br />

Ettienne Moller<br />

General Manager<br />

<strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

This plan was developed by previous MRM owners, MIM, in joint<br />

venture with ANT Minerals, and was subsequently reviewed and<br />

rejected by Xstrata when it acquired MIM in 2003.<br />

By 2008, we were investigating an alternative to establish a<br />

greenfield refinery in Gladstone in Queensland and a brownfield<br />

project in Germany. A site was selected and studied in Gladstone<br />

and discussions were held with the Queensland and Australian<br />

Governments regarding potential economic support, but again, this<br />

proposal did not stack up from a feasibility perspective.<br />

The result was, however, the beginning of the idea to develop an<br />

integrated plan involving the Xstrata Zinc smelters in Spain and<br />

Germany, and potentially, Canada.<br />

I think it is highly significant that Xstrata Zinc is prepared to<br />

invest such a substantial figure in order to secure the future<br />

of MRM, which is now ranked as the world’s second largest<br />

zinc resource.<br />

The announcement in March was just the start of a process of<br />

environmental assessment and feasibility studies. As part of this,<br />

a comprehensive community consultation plan will be conducted<br />

to ensure all members of the region have an opportunity to provide<br />

feedback on the proposal.<br />

I look forward to providing you with further updates as the<br />

proposal progresses through the next phase of planning.<br />

Production ahead for the year<br />

Despite the weather and the wet<br />

conditions, the mining team has<br />

achieved above targeted levels of<br />

production for the first two months<br />

of this year.<br />

“We now have two experienced operators, who are able to provide<br />

on-site training to new and existing personnel. Based on the<br />

success of having our new trainers on-site and in the field with our<br />

operators, we are moving to put four additional personnel through<br />

the same course this year. This will include a shot firer to improve<br />

training for the blast crews.”<br />

An extra million tonnes of waste has been moved during the<br />

period to take the planned production rate to 3.8Mt above the<br />

budget of 2.9Mt.<br />

“This is a great start to the year and the crews need to be<br />

commended for their efforts, especially considering the conditions<br />

they have been working in,” said <strong>Mining</strong> Manager Karissa Grenfell.<br />

Other exciting news for the mining department is the successful<br />

completion of the Certificate IV in Training and Assessing by Stephen<br />

Pond and Paul Fletcher.<br />

Karissa Grenfell said both Stephen and Paul are congratulated<br />

on the successful completion of their studies and what they have<br />

implemented within the <strong>Mining</strong> Department since then.<br />

“These guys are experienced operators, who were put through this<br />

training as part of our ongoing commitment to providing career<br />

opportunities for personnel on site,” she said.<br />

2<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17


Phase 3 Development Project: securing MRM’s<br />

future (continued)<br />

The indicative cost of this part of the integrated plan is<br />

$270 million. During 2010, MRM produced 2.2 million tonnes<br />

of ore and 384,000 dry metric tonnes of bulk concentrate.<br />

Brian said the Imperial Smelting Furnaces, which currently<br />

consume MRM bulk concentrate, now produce less than 6%<br />

of the world’s primary zinc and that this market is declining.<br />

“Over 90% of zinc produced globally is produced by electrolytic<br />

smelters which cannot use bulk concentrate,” he said.<br />

“This is why the opportunity to supply Xstrata Zinc smelters<br />

using new technology that can consume MRM’s bulk concentrate<br />

is essential.”<br />

Brian said this is the third phase of development at MRM after<br />

commencing as an underground mine in 1995 and converting to<br />

open pit mining in a project completed in 2009.<br />

“The open pit operation has already enabled MRM to meet all<br />

targeted objectives on production, employment, environmental<br />

management and socio-economic benefits for the region,”<br />

he said.<br />

A notice of intent for an environmental assessment of the<br />

proposed MRM development has been lodged with the Northern<br />

Territory Government.<br />

This assessment and a concurrent economic feasibility study, will<br />

investigate the environmental, infrastructure and operational<br />

requirements associated with the proposed development at<br />

MRM. Brian said a scoping study conducted in 2010 has already<br />

confirmed the proposed development would not expand the<br />

open pit beyond the current boundary of the bund wall and there<br />

is no intention of further diversions to the <strong>McArthur</strong> <strong>River</strong> or<br />

Barney Creek channels.<br />

“It has always been understood that MRM held significant<br />

potential reserves so the civil works were planned in such<br />

a way to enable the mine’s future expansion subject to<br />

approvals,” he said.<br />

Brian said the decision to proceed with the proposed<br />

development is subject to the outcomes of ongoing feasibility<br />

studies and associated technology trials in Europe, as well as the<br />

environmental assessment for MRM.<br />

Since MRM commenced its transition to open pit mining<br />

in 2006, it has maintained its record of good environmental<br />

performance, committed over $7 million to support the<br />

development of the Gulf region through the MRM Community<br />

Benefits Trust, and increased Indigenous workforce participation<br />

from 9% to 21%.<br />

For more information visit http://www.mcarthurrivermine.com.au/<br />

userfiles/file/MRM-Phase3-ProjectIntroduction.pdf<br />

Phase 3 Development Project<br />

Key features of proposed MRM<br />

Phase 3 Development Project:<br />

• Expanding the open pit mining<br />

operation within the bund through<br />

an expanded fleet of conventional<br />

shovels/excavators and large haul<br />

trucks<br />

• Increasing the capacity of the existing<br />

Tailings Storage Facility<br />

• Generating approximately<br />

500 million tonnes of additional<br />

waste rock to be sent to overburden<br />

emplacement facilities<br />

• Upgrading the processing plant<br />

• Expanding the power station<br />

requirements at the mine site<br />

• Building a temporary construction<br />

camp and expanding the existing<br />

accommodation facilities<br />

• Increasing MRM’s mineable<br />

reserves from 53 million tonnes to<br />

115 million tonnes, extending the<br />

life of the mine to 2033 at the<br />

proposed higher rate of production.<br />

Base<br />

case<br />

TSF<br />

Upgrade<br />

Existing<br />

TSF<br />

Camp<br />

Airstrip<br />

Mill<br />

Base<br />

case OEF<br />

Extension<br />

Existing<br />

North<br />

OEF<br />

Existing<br />

Pit<br />

Pit<br />

Expansion<br />

Bund<br />

<strong>McArthur</strong> <strong>River</strong> Channel<br />

Map of current MRM operations and base case for assessment for MRM Phase 3 Development Project<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17<br />

3


Two more inductees for 15 year club<br />

Two staff have been recognised for<br />

achieving 15 years service to MRM:<br />

Robert James and Greg Bateson. They<br />

join the five inaugural inductees to the<br />

15 year club, established in 2010.<br />

Rob started at the mine as an underground machinery operator for<br />

seven years and reached the position of Jumbo driller.<br />

He then moved into an underground training role as a mine<br />

production officer. He remained in this position during the switch<br />

from underground to open cut and has since performed various<br />

roles with a strong focus on safety and training. He is currently the<br />

<strong>Mining</strong> Department’s Sustainable Development <strong>Mining</strong> Coordinator.<br />

Rob’s first impressions of MRM came when he flew in from Mount<br />

Isa for his interview to be met at the Airport by the four “huge”<br />

guys who were going to interview him.<br />

“Back then you were interviewed by the team you would work<br />

with. The first question they asked me was, “What brings you to<br />

<strong>McArthur</strong> <strong>River</strong>?”, and I replied, “The week off”. Back then not<br />

many mines offered lifestyle rosters like that,” Rob said.<br />

“When I first started here I had a five year plan to stay, but MRM<br />

changed that. What keeps me here is the career progress. I have<br />

been able to get new challenges and changes in roles and positions.<br />

The other key element to this is my current role in <strong>Mining</strong> – we<br />

all share information and I have open and honest communication<br />

between my peers.”<br />

Greg is a fitter who joined MRM as an operator maintainer for<br />

the Larox filters that filter and de-water concentrate prior to it<br />

being trucked.<br />

Greg’s current role is Mechanical Electrical Planner for the<br />

Metallurgy Department.<br />

Greg’s first impressions were of a small close knit workforce.<br />

“When we started we were a self-managed workgroup. This meant<br />

we had to organise our own crews to get all the jobs done. It was<br />

good way to learn your way around the plant and understand how<br />

the equipment operated and how to repair it,” Greg said.<br />

Greg became a supervisor of a maintenance crew and in this role,<br />

experienced one of the jobs he is most proud of when removing<br />

all the underground equipment as part of the conversion to open<br />

pit mining.<br />

“The safety culture of the crew, which included contractors I<br />

was in charge of during this time, allowed for the safe removal<br />

of equipment from the underground mine to be incident-free.<br />

Considering the large volume of equipment like roof beams,<br />

crushers, conveyor belts (in fact we removed 2kms of CB3), this was<br />

a big achievement,” Greg said.<br />

“The workforce is still fairly close in the mill, and this helps with<br />

retaining knowledge, which is valuable.”<br />

“Watching the improvements and the changes from when we<br />

were underground to open pit has been interesting. The face has<br />

changed from a little plant on the top of a hill to a big open pit,<br />

with haul roads, large equipment and big piles of dirt. There is so<br />

much more visible activity compared to the underground days.”<br />

Robert James<br />

Greg Bateson<br />

4<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17


Environment Update<br />

Migratory Birds and Seagrass Surveys<br />

In line with the Commonwealth<br />

Government’s requirements and MRM’s<br />

commitment to environmental performance,<br />

the first of the 2011 migratory bird surveys<br />

has been conducted for this year, and the<br />

annual seagrass survey is complete.<br />

Migratory Birds<br />

The survey is made up of aerial and ground counts between Rosie<br />

Creek and Robinson <strong>River</strong> in the Gulf. This assists in assessing the<br />

shorebirds utilising habitats on the northern Australian coastline<br />

during the Austral summer period.<br />

The study area has been recognised as an important area for<br />

migratory shorebirds and other birds, including a number of species<br />

that are listed as migratory species under the EPBC Act.<br />

A total of 6,702 migratory shorebirds, resident shorebirds and other<br />

wetland birds from 46 species were counted during ground counts<br />

at the 19 study sites. In comparison, a total of 14,204 migratory<br />

shorebirds, resident shorebirds and other wetland birds from 49<br />

species were recorded during the aerial surveys.<br />

In general, numbers of shorebirds observed during the summer<br />

of 2011 were higher than those observed during the summer<br />

2010 count. In addition, some changes were also noted in species<br />

composition. There are a variety of factors that may have influenced<br />

changes in the proportions and abundances of the shorebirds<br />

observed during the surveys. These may include northern hemisphere<br />

habitat conditions and breeding success, local and regional habitat<br />

condition, and seasonal/climatic characteristics that may alter the<br />

local distribution, foraging and roosting behaviour of shorebirds.<br />

The surveys indicate that the location of important foraging areas<br />

for shorebirds within the Port <strong>McArthur</strong> area vary significantly<br />

depending on the distribution of available foraging substrates.<br />

A Stone Curlew was identified<br />

as part of MRM’s 2011 migratory bird surveys.<br />

Annual Seagrass Survey<br />

Since 2003, MRM has undertaken annual seagrass surveys at its Bing<br />

Bong loading facility. These studies are part of MRM’s commitment<br />

to sustaining positive environmental performance, and are also a<br />

Northern Territory Government requirement to assess potential effects<br />

operations may have on seagrass communities.<br />

“Seagrasses are important feeding grounds for dugong and provide<br />

habitat for many marine organisms, so continual monitoring of<br />

these sea grass species is important to the mine”<br />

said Gary Taylor, MRM’s Health, Safety and Environment Manager.<br />

Initially, monitoring focused on potential effects of dredging<br />

operations, however, the current focus is on broad scale distribution<br />

of seagrass species within the mineral lease area.<br />

In November and December 2010, MRM undertook its annual<br />

seagrass survey at the mine’s Bing Bong loading facility.<br />

The report was received in the first quarter of this year and<br />

shows an increase in the number of seagrass species since the<br />

2009 survey.<br />

Similar to the previous year’s findings, the survey highlighted that<br />

seagrass cover is more dominant in shallow waters than in deep water.<br />

The results were also consistent with all post cyclonic surveys.<br />

Pioneer species H. uninervis and H. ovalis had the greatest<br />

distribution and cover density within the study area.<br />

Aburri barge in the swing basin<br />

at Bing Bong loading facility<br />

where samples of seagrass have<br />

been collected and tested.<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17<br />

5


360 degrees of feedback<br />

MRM recently completed its first formal survey of stakeholder perceptions, which<br />

revealed that the majority involved saw the mine as a company committed to the<br />

development of Borroloola and the Gulf region, and which operates with fair and<br />

considerate business practices.<br />

100<br />

Summary of Performance <strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

(Percentage who Agree or Strongly Agree or rate performance as Good to Very Good)<br />

80<br />

60<br />

58.6<br />

51.7<br />

69<br />

65.5<br />

79.3<br />

58.6 58.6<br />

51.7<br />

58.6<br />

40<br />

20<br />

0<br />

Environment<br />

Safety<br />

Committed to development<br />

Borroloola & Gulf region<br />

Makes a positive contribution<br />

to local community<br />

Fair and considerate<br />

business practices<br />

Is proactive when dealing<br />

with important issues<br />

Has a positive reputation<br />

in the area<br />

Communicates openly<br />

with community<br />

27.6<br />

Community communication<br />

on important issues<br />

Meets your<br />

communication needs<br />

2010<br />

The 360 Degree Stakeholder Survey conducted in late 2010 involved<br />

29 stakeholders representing the community, government and<br />

suppliers. The results provided a snapshot of our performance in<br />

some key areas, including environment and safety, working with<br />

communities and stakeholders, Sustainable Development policy,<br />

reputation, and communication.<br />

The survey also gave participants an opportunity to outline what they<br />

saw as the most important issues facing MRM, and the challenges<br />

facing the community.<br />

A key finding was that 65% perceive that MRM makes a positive<br />

contribution to the local community and that almost 60% believe<br />

MRM has a positive reputation in the area.<br />

A key area for improvement identified by the survey was that while<br />

generally, MRM is meeting the communication needs of almost 60%<br />

of participants, less than 30% thought communication on important<br />

issues was effective.<br />

The findings of this study have been taken into consideration in<br />

planning Community Relations activities for 2011 and in particular,<br />

will be reflected in the stakeholder engagement plans supporting the<br />

Phase 3 Development Project.<br />

Thank you to everyone who participated in the 360 Degree<br />

Stakeholder Survey. For further information contact MRM Senior<br />

Community Relations Advisor, Kirsty Hogarth, on (08) 8975 8216<br />

or khogarth@xstratazinc.com.au<br />

Community challenges identified by the<br />

stakeholder survey:<br />

• Education<br />

• Equity for Indigenous and non-Indigenous<br />

• Health issues<br />

• Isolation and flow-on issues such as<br />

affordable travel<br />

• Funding for infrastructure<br />

• Drug and alcohol abuse<br />

• Lack of housing or overcrowding in Borroloola<br />

• Lack of freehold land for development<br />

• Activities and resources for young people<br />

• Thriving town of Borroloola<br />

• Economic and tourism growth.<br />

6<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17


7 Emu’s Team Assisting Rehabilitation Activities<br />

The 7 Emu’s team and MRM are working together to rehabilitate the <strong>McArthur</strong> <strong>River</strong> (top right) and Barney Creek (bottom left) channels<br />

Over the last two months, MRM has been working closely<br />

with a team of local sub-contractors from 7 Emu’s Station<br />

who have been contracted to provide assistance to the<br />

Environment Department with rehabilitation activities on<br />

site and at Bing Bong.<br />

The team from 7 Emu’s consists of Damien O’Keefe, Ian Mawson,<br />

Angus Kidd, Alfred Anderson, Hayden Ward and Marissa Shadforth.<br />

Initially, they were employed in the nursery to propagate native<br />

plants such as <strong>River</strong> Red Gums, <strong>River</strong> She-Oak, Cane Grass,<br />

Australian Vetiver Grass and Silver-Leaved Paperbark, which are<br />

all common to the <strong>McArthur</strong> <strong>River</strong> area. While in the nursery they<br />

were assisted by <strong>McArthur</strong> <strong>River</strong>’s expert environmentalist in plant<br />

revegetation, Jason Desmond.<br />

Gary Taylor, MRM Heath, Safety and Environment Manager said, as<br />

part of MRM’s commitment to working with local contractors and<br />

businesses, we were able to provide practical on-site training to the<br />

7 Emu’s team from the nursery to the field, which has been a win-win<br />

situation for both.<br />

“They provide local knowledge and labour and we apply best practice<br />

scientific knowledge,” Gary said.<br />

From the greenhouse, the 7 Emu’s crew moved to work on MRM’s key<br />

rehabilitation areas: the <strong>McArthur</strong> <strong>River</strong> and Barney Creek channels.<br />

Here the crew direct seeded native grass species by hand and planted<br />

native tube stock from MRM’s on-site nursery.<br />

Gary said working closely with locals has provided benefits to our<br />

environment team.<br />

“Jason has appreciated the local knowledge he has gained of the<br />

area and its associated vegetation communities as well as local fauna<br />

identification,” he said.<br />

As part of the mine’s progressive rehabilitation program, the 7 Emu’s<br />

team also worked with Jason on the Bing Bong dredge spoils . MRM<br />

is conducting specific trials on coastal grasses, in an effort to identify<br />

which native species will flourish in the coastal region. The crew<br />

also provided weed management services in the area to remove the<br />

identified weed, Parkinsonia.<br />

So far this year, approximately 1000 plants have been planted along<br />

Barney Creek and the <strong>McArthur</strong> <strong>River</strong> channels, with an additional<br />

8000 plants ready for planting in the site nursery. Planting will increase<br />

at the end of the wet season when access is easier and tracks are<br />

re-established.<br />

Currently, additional tube stock is being grown in MRM’s site nursery<br />

with more plants to be ordered.<br />

Direct seeding has also occurred on approximately 14 hectares at Bing<br />

Bong on the dredge spoils, and 30 hectares on cell one of the Tailings<br />

Storage Facility following the completion of clay capping.<br />

Weed management to date has mostly focused on Parkinsonia<br />

and Devils Claw, with large areas around the dredge spoil at<br />

Bing Bong being treated. Inspections have noted that the current<br />

management techniques applied at both Bing Bong and MRM have<br />

been highly effective.<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17<br />

7


Safety Report<br />

MRM continues to reduce the Total<br />

Recordable Injury Frequency Rate<br />

(TRIFR), and is now undertaking<br />

assessments to further reduce instances<br />

of medically treated injuries (MTIs).<br />

Recent analysis of MTIs during 2010 and 2011 indicates that a<br />

majority of cases resulted in stitches to the hands or fingers. As a<br />

direct result of this, MRM is undertaking an assessment of knives<br />

used on site, with new safety rules being put in place for the<br />

mandatory use of cut resistant gloves.<br />

During March, a new Injury Management Advisor was also employed<br />

at MRM. Jessica Rush, who previously worked with Xstrata’s Oaky<br />

Creek Coal operations, will primarily be focused on preventing<br />

injuries on site. Jessica is a treating physio and will work with<br />

the development of injury prevention projects, injured worker<br />

rehabilitation, return-to-work planning and ergonomic projects.<br />

She will provide this through education and awareness training and<br />

advice on fitness programs and physical education on site.<br />

Risk management has also played a major role in the first quarter<br />

of 2011 with risk assessments being conducted for main<br />

departmental areas.<br />

Frequency<br />

18<br />

15<br />

12<br />

9<br />

In addition, assessment was undertaken with the annual<br />

catastrophic risk review conducted by managers, superintendents<br />

and operational and safety personnel. All updated risks from<br />

this process are updated into CURA, the site's database for the<br />

management of risks. As part of this risk process, verifications are<br />

also conducted by risk and control owners, and information fed<br />

back into the CURA system, with the ultimate aim of improving risk<br />

management on site.<br />

10.8 10.5 10.1 9.9<br />

Total Recordable Injury Frequency Rate<br />

6<br />

3<br />

1 0 0 0 0 0 0 1 0 1 1 0 0 0 1 0 0 1 0 0 0 1 0 1<br />

0<br />

Apr10 May10 Jun10 Jul10 Aug10 Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11<br />

Employee<br />

10.5 10.2<br />

8.2<br />

Contractor<br />

9.0 8.9<br />

7.1 7.0 6.9<br />

TRIFR 12MMA*<br />

* Total Recordable Injury Frequency Rate 12 monthly rolling average for the<br />

past 12 months<br />

3<br />

2<br />

# of Injuries<br />

1<br />

0<br />

MRM associates supporting sustainable business practices<br />

MRM is working closely with suppliers,<br />

partners and contractors to achieve its<br />

objective of sustainable development in<br />

all day-to-day business practices.<br />

Administration Manager Mike Williams, said we are working<br />

cooperatively to ensure we understand each other’s needs in order<br />

to meet this objective.<br />

“Xstrata works to a set of business principles that define how<br />

we work ethically, responsibly, openly and together with others,”<br />

Mike said.<br />

“Each operation also works under a Sustainable Development<br />

Framework which balances economic, environmental and social<br />

considerations. It is important for our associates to understand these<br />

corporate requirements, as complying with these requirements is an<br />

essential part of our accreditation of service providers.”<br />

As an example, suppliers are expected to meet standards to ensure<br />

goods are:<br />

• Manufactured, stored and distributed having regard for the<br />

health and safety of employees, contractors and customers<br />

• Manufactured, packed and transported having regard for the<br />

environment<br />

• Manufactured in and supplied from countries where human<br />

rights are recognised<br />

• Fit for purpose.<br />

During the last couple of months, the Administration Team has<br />

been working diligently with suppliers, contractors and partners,<br />

renewing agreements to ensure that sustainable development<br />

policies and standards are in place.<br />

An accreditation survey is conducted of new suppliers, contractors<br />

and partners to evaluate the organisations’ sustainable<br />

development practices.<br />

Where a supplier cannot demonstrate a robust process and is<br />

unable to meet minimum standards, MRM works with them to<br />

develop a program providing policies and standards to interpret<br />

and adapt to suit their particular businesses needs. The same<br />

process applies to MRM should an organisation have more in-depth<br />

procedures and policies.<br />

“There is continual evaluation and modification to improve existing<br />

standards. By working together we continue to raise the bar in<br />

sustainable business practices,” Mike said.<br />

“In accrediting our suppliers in Sustainable Development, we engage<br />

in open and honest dialogue based on ethical business practices in an<br />

effort to strengthen our current business partnerships.”<br />

8<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17


Mill Report<br />

The mill continues to meet and exceed<br />

milestones in relation to production,<br />

performance and safety according to<br />

Metallurgy Manager, Sam Strohmayr.<br />

Three scheduled shutdowns during February were completed safely<br />

and on time even though nature tried its best to stop work with<br />

Cyclone Yasi.<br />

Sam said he was particularly pleased with the efforts that went into<br />

the job planning activities.<br />

“It provided an opportunity for improved identification and<br />

management of hazards to ensure we are working safely,” he said.<br />

“Congratulations to all involved in the refit work and particularly<br />

to Cory Spicer and Garry Solly for their involvement in the planning<br />

and supervision of the job.”<br />

The rebuild of Filter 2 surpassed expectations and the filter is<br />

now producing dry cake (concentrate or product) on a new filter<br />

cloth at 8.5 minute cycles, at roughly 10 tonnes per drop, which is<br />

a fantastic result.<br />

Before the refit the filter process produced wet-cake (concentrate)<br />

with average moisture content above the preferred band of 12%<br />

to 13%. The production cycle was also slower at 11 to 12 minutes<br />

each cycle, so the refit has enabled a saving of two to three minutes<br />

per cycle.<br />

On 20 February the mill achieved a throughput record of<br />

7717 tonnes per hour for a 24 hour shift. This is a significant<br />

achievement and much of this is a direct result of the design work<br />

the metallurgists undertook in the re-design of the lifter profile for<br />

the SAG mill liners. It has produced a more efficient grind with an<br />

immediate impact on mill throughput.<br />

“Past experience had shown that there is usually two to three<br />

months of milling hardship before the liners bed in,” Sam said.<br />

“But with the recent shutdown for maintenance, the lifter angle was<br />

spot on and the mill is now producing at record rates. The impacts<br />

of a steady milling circuit and properly operating filter are already<br />

being evidenced in the clean-up and housekeeping improvements<br />

being achieved in the milling and filter areas in particular.”<br />

Safety records show that in February, the Metallurgy Department<br />

reached its lowest Total Recordable Injury Frequency Rate (TRIFR) in<br />

four years. Hand injuries remain the main cause of incidents and as<br />

a result, gloves are now mandatory PPE for all processing personnel.<br />

“I encourage everyone to remember to wear their gloves, as these<br />

will prevent or reduce the injury severity, should something go<br />

wrong,” he said.<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17<br />

9


The Old Girl retires<br />

Since 1998, Lindsay Pilgram has worked for<br />

Hamptons as one of their drivers, transporting<br />

MRM bulk concentrate to the Bing Bong loading<br />

facility. He is affectionately known as “Father”<br />

to Hampton’s team here at MRM, and his J80<br />

truck is commonly known as ‘the old girl’.<br />

During that time, Lindsay has come to know the Bing Bong route<br />

extremely well, having now clocked up 3 million kilometres or about<br />

12,500 round trips. Having reached that milestone, Hamptons are<br />

now retiring J80 as an old and reliable friend.<br />

J80 and Lindsay have played an important role in safety here at<br />

the mine. During the wet season, J80 has always been the first truck<br />

off-site of a morning as Lindsay provides the mine with the earliest<br />

road condition and flooding reports.<br />

Leon McMillan, Hampton’s MRM Manager said “we appreciate<br />

the effort and the commitment that Lindsay has provided Hamptons<br />

and to have reached 3 million kilometres in the same truck is a big<br />

effort.”<br />

“Lindsay has mixed emotions about his new truck but we are<br />

positive he will make another 3 million kilometres.”<br />

Lindsay farewelled J80 ensuring ‘the old girl’ was washed, polished<br />

and shining when she left the mine site for the last time.<br />

Lindsay Pilgram and<br />

‘the old girl’, J80,<br />

have safely clocked up<br />

3 million kilometres<br />

together for MRM.<br />

MRM salutes an NT young achiever<br />

This year's winner of the NT Young Achiever <strong>McArthur</strong> <strong>River</strong><br />

<strong>Mining</strong> Regional and Rural Initiative Award was Rebecca<br />

Healy from Tennant Creek. Rebecca received her award at a<br />

gala presentation dinner on Saturday 2 April at the Holiday<br />

Inn Esplanade, Darwin.<br />

Growing up in a remote part of the Territory, Rebecca completed her<br />

schooling through the Katherine School of the Air and purchased<br />

her first house at age 19. At 25, Rebecca has become a respected<br />

supporter of the Barkly Region youth community. Her past experiences<br />

guide other young people, teaching them about the importance of<br />

independence and planning to secure a rewarding future.<br />

Rebecca’s passion for the community has seen her become an<br />

influential spokesperson and representative for disadvantaged youth<br />

in the Region. Rebecca has been involved in a variety of forums,<br />

including the Chief Ministers Round Tables of Young Territorians,<br />

the Youth Justice Advisory Community, the Northern Territory Youth<br />

Affairs Network, the Youth Justice Advisory Committee, and the Barkly<br />

Shire Councils Local Advisory Board – all of which have helped shape<br />

Rebecca into the person she is today.<br />

Rebecca is in the process of establishing a virtual assistance business,<br />

focusing specifically on regional and rural business development.<br />

MRM salutes NT Young Achiever Rebecca Healy on her outstanding<br />

work for the youth community in the Barkly Region.<br />

MRM is proud to sponsor the NT Young Achiever Awards which,<br />

in recognising people like Rebecca, are encouraging the qualities<br />

of initiative, commitment, teamwork and success that are important<br />

for business and the Territory.<br />

Congratulations Rebecca!<br />

10<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17


Trees and training through Trust grants<br />

A fresher, brighter Borroloola is in store, while the local community will receive<br />

more education, training and employment opportunities with grants valued at over<br />

$1.6 million approved by the MRM Community Benefits Trust in February.<br />

After a four-year<br />

apprenticeship with MRM,<br />

Damien Baker now has an<br />

Engineering Fabrication<br />

Certificate<br />

Grant recipient: Mabunji Aboriginal Resource Assn.<br />

The Beautifying Borroloola Project being undertaken by Mabunji<br />

Aboriginal Resource Association will receive $26,000 to cover<br />

landscape design costs for the town. Borroloola’s entrance will be the<br />

focus, aiming to make the town welcoming to tourists, and to build<br />

a sense of pride amongst town members.<br />

The landscaping design grant supports the Trust’s environment<br />

objective to preserve and celebrate the local environment. It also<br />

contributes to a positive, highly visible project as a way to showcase<br />

the kinds of things that can be achieved through applying for funding<br />

from the Trust.<br />

Grant recipient: Department of Education and Training<br />

A significant grant has also been awarded to the Department of<br />

Education and Training’s Bright Start, Strong Future program, with over<br />

$1 million to be provided over three years. This will contribute to the<br />

cost of a $4.5 million series of initiatives to be delivered in partnership<br />

between the department, Borroloola School and MRM.<br />

The program has been proven in other NT communities to help provide<br />

a pathway toward education and training from birth, to school,<br />

through to employment and involves:<br />

• Frequent attender program and incentives for students<br />

• Provision of 5 computers to the Year 7 class<br />

• New vocational education and training opportunities involving work<br />

placements for students from the age of 14 years and up to 10<br />

school based apprenticeships per year<br />

• Improved quality of VET facilities and engagement of a trainer with<br />

a background in engineering and construction.<br />

General Manager of NT Department of Education and Training’s<br />

Participation and Pathways Division, Tony Considine, said research<br />

shows attendance at school is at the heart of effective learning.<br />

“This program sits squarely with the aims of the department in getting<br />

more students to attend school, and to stay at school longer.<br />

To ensure students are properly equipped to make the most of<br />

future job opportunities, research shows we’ve got to get them there,”<br />

said Tony.<br />

The program will work towards increasing school attendance to 90%<br />

of all eligible students; to increase the amount of time they spend at<br />

school to 90% and above; and to equip students with skills necessary<br />

to sustain employment at MRM or an associated industry.<br />

Grant recipient: MRM<br />

A $600,000 grant was awarded to support the extension of MRM’s<br />

Indigenous Employment and Training Strategy and help meet an<br />

important objective of the Trust.<br />

The focus of the program is to facilitate an effective recruitment<br />

process, increase retention rates of Indigenous trainees and improve<br />

career development for existing Indigenous employees.<br />

MRM General Manager, Ettienne Moller, said MRM’s commitment<br />

to increase Indigenous employment to 20% is a specific objective<br />

of the Trust.<br />

“Without the support of the Trust’s funding, we would not have been<br />

able to achieve the increase in Indigenous employment from 9% to<br />

21% in four years,” he said.<br />

“Having achieved our target of 20%, we are now focusing on at least<br />

maintaining and preferably increasing this percentage by both retaining<br />

and developing the Indigenous employees we have and continuing to<br />

bring in new entry level personnel.<br />

“A key change in the strategy is to recruit new Indigenous employees<br />

for specific job opportunities, rather than just a general trainee intake.<br />

That way, we can get our entry level personnel into real jobs faster.”<br />

Ettienne said the grant represented only a proportion of the total cost<br />

of the Indigenous employment program.<br />

“In 2011, MRM plans to invest $1.4 million in Indigenous employment<br />

and training which is a significant investment within<br />

the business,” he said.<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17<br />

11


Brisbane<br />

West Island<br />

Sir Edward Pe lew Islands<br />

Centre<br />

Island<br />

Watson<br />

Island<br />

North<br />

Island<br />

<strong>McArthur</strong> <strong>River</strong><br />

Mouth<br />

Vanderlin<br />

Island<br />

Centre<br />

Island<br />

Watson<br />

Island<br />

North<br />

Island<br />

<strong>McArthur</strong> <strong>River</strong> Mine dominated this year’s North Australian<br />

Vanderlin<br />

Island<br />

Ben Ki lick (Rescue Officer 2), Geoff<br />

visiting schedule 2011<br />

Staff survey to improve on-site communication<br />

MRM will be looking at new and improved ways of communicating<br />

with our staff, contractors and suppliers in 2011 to ensure we<br />

are providing information in an interesting, accessible and<br />

convenient way.<br />

These improvements are being driven by the results of the internal<br />

communication survey conducted in 2010, which captured<br />

feedback and ideas on how we communicate, and what we<br />

communicate about.<br />

A key finding of the survey was that staff at MRM prefer to receive<br />

information through face-to-face communication such as Tool Box<br />

talks, supported by communication tools such as the MemoRanduM<br />

newsletter and the ‘State of the Nation’ addresses by the General<br />

Manager. The survey also found that while the intranet and website<br />

are important sources of information, improvements can be made<br />

to content, ease of use and ease of reading.<br />

What you said<br />

MemoRanduM<br />

MRM website<br />

Intranet<br />

Performance<br />

The survey found the newsletter is well regarded, with staff<br />

rating its performance as good or very good in regards<br />

to look and layout (70.9%), content (60.6%) and ease of<br />

reading (70.7%).<br />

According to the survey feedback, staff rated the website’s<br />

performance as good or very good in the areas of content<br />

(56%), ease of reading (54.9%) and ease of use (54%).<br />

The MRM intranet is also valued by staff as an important<br />

communication tool. Survey results show that 44.7% of<br />

staff enjoy the content and 43.8% find it easy to read.<br />

These lower results also reflect the more complex material<br />

located on the intranet compared with the website.<br />

Areas for improvement<br />

Staff are interested in receiving more information on<br />

innovation, performance, staff updates, environment<br />

and community.<br />

The main improvements staff said they would like to see<br />

include updating the user interface and the provision of<br />

on-site web navigation training.<br />

The survey found only 38.3% of staff found the intranet<br />

content easy to use and this will be reviewed in the year<br />

ahead. Other suggestions included providing current<br />

information such as general notices/bulletins and news<br />

stories from each department.<br />

Darwin<br />

MEMORANDUM<br />

www.mcarthurrivermine.com.au mrmprojenq@xstrata.com.au 1800 211 573 OCTOBER 2010 EDITION 15<br />

<strong>McArthur</strong> <strong>River</strong><br />

<strong>Mining</strong><br />

We Won!<br />

The ERT members who represented<br />

MRM at the competition are: Back row,<br />

left to right: Julie McGinnigle (Medic),<br />

Alan Jarrett (Rescue Officer 3), Ed Doerr<br />

(Vice Captain), Kane Harte l (Captain),<br />

NORTHERN<br />

TERRITORY<br />

Brisbane<br />

McCumstie (Senior Representative and<br />

Team Manager). Front row, left to right:<br />

Graham Howard (Rescue Officer Reserve)<br />

and Aaron Homan (Rescue Officer 1).<br />

Australia<br />

Safety first: MRM wins top honours at the<br />

Northern Australian Emergency Rescue Competition<br />

Emergency Rescue Competition, winning four of the six events<br />

and taking home the Best Overall Team award.<br />

“The ERT regularly tests and updates MRM’s Site Emergency Response<br />

Plan to prepare response strategies for potential emergencies,” Gary<br />

The competition, held at the Hidden Valley race track in Darwin<br />

said. “At present, the team comprises 25 staff members, seven of<br />

from 9 – 12 September, tested the safety response and rescue<br />

capabilities of Emergency Response Teams (ERT) from four mine<br />

whom competed in the mine rescue competition.<br />

sites including Rio Tinto’s Argyle Diamonds (WA), BHP Billiton<br />

Cannington (QLD) and Newmont’s Tanami Operations (NT).<br />

“To enter the competition, the team completed a number of basic<br />

training modules including vertical rescue, Hazmat, breathing<br />

MEMORANDUM<br />

www.mcarthurrivermine.com.au mrmprojenq@xstrata.com.au 1800 211 573 JULY 2010 EDITION 14<br />

The competition supersedes the Northern Territory Mines Rescue<br />

Competition run by the former NT Resources Council. It tests teams<br />

and individual team members in scenarios that simulate real life<br />

experiences without the actual trauma.<br />

MRM General Manager Ettienne Moller said the result was<br />

a testament to the team’s hard work and discipline.<br />

“The results say it for themselves – no other team came close to<br />

MRM this year,” Ettienne said. “This is a great result for the entire<br />

mine, one we are very proud of. It was a superb effort and we<br />

congratulate the team wholeheartedly.”<br />

MRM won the team events in the disciplines of Hazmat, Road<br />

Sir Edward Pellew Islands<br />

apparatus, search and rescue techniques, occupational first aid and<br />

fire fighting.<br />

“In addition to their own individual training, the team also trained<br />

intensively leading up to the competition to ensure their skills were<br />

of the highest standard.”<br />

Gary said the most commonly required emergency response skill is<br />

the use of breathing apparatus.<br />

“This is required across a number of emergency response scenarios<br />

including fire fighting, search and rescue in smoke, underground<br />

rescues and in situations where chemicals have spilt,” he said.<br />

The 2010 North Australian Emergency Rescue competition was<br />

Thank you to everyone who participated in the survey last<br />

year – we value your feedback.<br />

If you have a story idea for MemoRanduM, please contact<br />

MRM Senior Community Relations Advisor, Kirsty Hogarth,<br />

on khogarth@xstratazinc.com or phone (08) 8975 8216.<br />

Darwin<br />

<strong>McArthur</strong> <strong>River</strong><br />

<strong>Mining</strong><br />

NORTHERN<br />

TERRITORY<br />

Australia<br />

Accident Rescue, First Aid, Search and Rescue in Smoke and Best<br />

Overall Team. The team also scooped a number of individual<br />

awards, with Graham Howard winning Best Individual, Julie<br />

McGinnigle awarded Best Medic<br />

and Kane Hartell winning the title of Best Captain.<br />

MRM Health, Safety and Environment Manager Gary Taylor said<br />

the awards not only highlighted the skills of the ERT, but also<br />

demonstrated the importance of health and safety awareness<br />

and training onsite.<br />

Economy Community<br />

Economy<br />

MRM contributes to a strong<br />

half-year performance<br />

MRM continues good record of no impact on the Gulf<br />

Traditional Indigenous foods co lected from along the Bing Bong<br />

coast and the Sir Edward Pe lew Islands in the <strong>McArthur</strong> <strong>River</strong><br />

estuary are safe to eat according to a report by the Australian<br />

Institute of Marine Science (AIMS).<br />

The independent report, produced as part of the Institute’s<br />

2009 Annual Marine Monitoring Program, confirms that MRM’s<br />

operations have had no detrimental impact on seawater, seagrass,<br />

surface sediments and several species of oysters and mo luscs.<br />

MRM Health, Safety and Environment Manager, Gary Taylor said<br />

the annual marine monitoring program has now been running<br />

for 17 years including two benchmark years before the mining<br />

operations commenced.<br />

“Throughout a l these studies, there has been no evidence of<br />

environmental harm by the mine,” Gary said.<br />

“The monitoring program is purposefu ly designed to assess traditional<br />

food sources for the people of the Sir Edward Pe lew Islands. In 2009,<br />

we doubled the number of sampling sites to include seven around the<br />

Islands identified in consultation with Traditional Owners.<br />

“We understand that food safety is critical to the health of the<br />

Island communities and the results of the monitoring program<br />

should give confidence to community members.”<br />

Metal concentrations in oysters and molluscs were a l within<br />

an acceptable range based on Australian and New Zealand<br />

food standards.<br />

AIMS found that metal and arsenic concentrations and lead<br />

isotope ratios in seawater and surface sediments were a l under<br />

the recommended guidelines set by the Australian and New<br />

Zealand Environment Conservation Council (ANZECC 2000) and<br />

the Food Standards Australia New Zealand (FSANZ 2009).<br />

The results also showed cadmium, lead and inorganic arsenic<br />

concentrations in oysters from a l sites were well below the FSANZ<br />

(2009) levels for molluscs. Importantly, they also showed that metal<br />

Economy<br />

Community<br />

15 years of growth and partnerships<br />

Bing Bong loading facility<br />

Bing Bong loading facility<br />

<strong>McArthur</strong> <strong>River</strong><br />

<strong>McArthur</strong> <strong>River</strong><br />

Borroloola<br />

West Island<br />

Sampling sites for the annual Marine Monitoring Program<br />

along the Bing Bong coast and the Sir Edward Pellew Islands.<br />

Borroloola<br />

concentrations in seawater were at or substantia ly lower than the<br />

ANZECC (2000) default trigger values for 99% protection, the<br />

highest level of ecosystem protection.<br />

judged and adjudicated by specialists and training consultants in<br />

each field including Northern Rescue Training, Draeger, St John<br />

Ambulance and Australian Mine Rescue Consultants.<br />

Awards won:<br />

Team:<br />

Hazmat<br />

Road Accident Rescue<br />

First Aid<br />

Search and Rescue in Smoke<br />

Best Overall Team<br />

Individual:<br />

Best Individual<br />

(Graham Howard)<br />

Best Medic (Julie McGinnigle)<br />

Best Captain (Kane Hartell)<br />

3 5<br />

7 People<br />

Trust sets priorities for the<br />

Mill Report<br />

New Starters<br />

year ahead<br />

Xstrata_Memorandum_October10_V4.indd 1 18/10/10 4:32 PM<br />

AIMS concluded that there was no measurable impact by MRM on<br />

seawater, surface sediments or oysters along the Bing Bong coast<br />

and Sir Edward Pe lew Islands.<br />

For more information about MRM’s marine monitoring programs<br />

and other environmental initiatives, visit www.mcarthurrivermine.<br />

com.au/environment_monitoringprograms.cfm.<br />

MRM minesite leases<br />

MRM minesite leases<br />

25 kilometres<br />

* No studies were conducted in 2006 due to access issues to the islands.<br />

** The FSANZ 2009 maximum accepted level for cadmium and lead is 2 mg/kg.<br />

Environment<br />

<strong>McArthur</strong> <strong>River</strong><br />

Mouth<br />

Annual average metal concentrations in Bing Bong<br />

oysters 1998–2009*<br />

Copper mg/Kg Cadmium mg/Kg**<br />

Zinc mg/Kg Lead mg/Kg**<br />

4 7<br />

9 People<br />

CRG profile: MAWA Chairman<br />

Birds shore up for long flight<br />

Keith Rory<br />

25 kilometres<br />

Sharing the journey: MRM's<br />

longest serving staff<br />

A successful exhibition in London by<br />

local artists and greater capacity to<br />

implement environmental programs<br />

around the Gulf are among the<br />

objectives of two new grants<br />

approved by the MRM Community<br />

Benefits Trust Board in December.<br />

The Waralungku Arts Centre has been invited to stage an exhibition<br />

in central London by the Rebecca Hossack Art Ga lery which over<br />

the past 22 years has pioneered the introduction of Aboriginal and<br />

Torres Strait Islander artwork into the United Kingdom.<br />

Paintings, prints and wooden sculptures by at least eight local artists<br />

wi l be featured in the exhibition this year.<br />

Local artists Nancy McDinny, Stewart Hoosan and Artworker<br />

Madeline Dirdi from the Waralungku Arts Centre plan to attend the<br />

exhibition for two weeks in June/July and approached the Trust for a<br />

$5,000 grant to help cover costs.<br />

6<br />

MEMORANDUM<br />

www.mcarthurrivermine.com.au mrmprojenq@xstrata.com.au 1800 211 573 FEBRUARY 2011 EDITION 16<br />

From local to London<br />

Given the opportunity however to promote local art and culture<br />

and build the commercial market for our regional artists, the Trust<br />

has agreed to this request but also offered an additional $45,000<br />

to support additional investment in marketing and website<br />

development.<br />

the public’s awareness of the facility, to showcase their works and<br />

drive sales at both a national and international level. Ga lery owner<br />

Rebecca Hossack considers work from Borroloola to be “some of<br />

the most exciting to come out of Australia in recent years”.<br />

A second grant approved in December was to support the<br />

Li-Anthawirriyarra Sea Rangers. The group wi l receive funding of<br />

$160,124 for two new vehicles, including maintenance costs over<br />

three years. The Li-Anthawirriyarra Sea Ranger Unit is a caring for<br />

country initiative of the Yanyuwa people of the southwest Gulf of<br />

Carpentaria.<br />

There are currently 13 rangers relying on only two vehicles and<br />

three boats. Through this grant, they wi l double the number of<br />

vehicles available and in so doing, a low the group to improve and<br />

extend their strategic patro ling activities and potentia ly, commence<br />

additional environmental research programs.<br />

The Board saw advantages in this proposal as an environmental<br />

initiative which also provides greater training, development and<br />

experience opportunities for the Rangers.<br />

In addition to these new grants, work is continuing with planning<br />

for priority projects under the 2011 Annual Plan.<br />

A meeting held in January with Traditional Owners and the Northern<br />

Land Council progressed the consideration of sites within the<br />

community for the planned business hub, multi-purpose community<br />

centre and student hostel accommodation.<br />

4<br />

In granting this additional funding, the Board’s aim is to help<br />

provide a platform for the Arts Centre and its artists to increase<br />

These major infrastructure developments wi l take time to complete<br />

but with the support of the community and Northern Territory and<br />

Australian Governments, are progressing.<br />

People<br />

New Starters<br />

4<br />

Environment<br />

<strong>McArthur</strong> <strong>River</strong> rehabilitation<br />

continuing to yield positive results<br />

5<br />

Economy 7 Community<br />

Mi l Report<br />

Project Officer - Borroloola<br />

Xstrata_Memorandum_February2011_FINAL.indd 1 8/02/11 5:09 PM<br />

8<br />

12<br />

McARTHUR RIVER MINING APRIL 2011 – EDITION 17


MEMORANDUM<br />

mrmprojenq@xstratazinc.com.au AUGUST 2011 EDITION 18<br />

MRM trainee, Tommy-Lee Jack, has been a competitor<br />

in the Annual Borroloola Rodeo and Camp Draft,<br />

which is a community event sponsored by MRM.<br />

More than $138 million generated in economic benefits<br />

The release of Xstrata Zinc Australia’s annual Sustainability Report<br />

highlights MRM’s good performance in 2010, which included generation<br />

of $138 million in direct economic contribution, a 37% increase<br />

in permanent employees and substantial improvements in safety<br />

performance.<br />

Covering 1 January 2010 to 31 December 2010, the Sustainability<br />

Report provides an overview of how Xstrata Zinc Australia’s operations<br />

have performed against the sustainable development strategy and<br />

framework. In particular, it reports on how the company manages its<br />

most important issues for stakeholders and its businesses.<br />

A full copy of the 2010 Xstrata Zinc Australia Sustainability Report is<br />

available online at http://www.xstratazinc.com/EN/Publications/Pages/<br />

SustainableDevelopment.aspx.<br />

A snapshot of MRM's performance in 2010 showed:<br />

Sustainability strategy and governance<br />

• There were no fines or sanctions for non-compliance with laws<br />

and regulations.<br />

• There were no legal actions taken for anti-competitive behaviour,<br />

anti-trust or monopoly practices.<br />

• There were no incidences of corruption or fraud.<br />

Health and safety<br />

• Lost Time Injury Frequency Rate (LTIFR) was 0.9 as at December 2010,<br />

declining by more than 50% since 2009.<br />

• Total Recordable Injury Frequency Rate (TRIFR) was steady at 8.9.<br />

• Disabling Injury Severity Rate (DISR) was 85 in 2010, decreased<br />

from 189 in 2009, showing a 55% improvement.<br />

Our people<br />

• The number of permanent employees increased by 37% from<br />

2009 to 282.<br />

• Indigenous workforce participation target of 20% was surpassed,<br />

increasing from 9% in 2006.<br />

• An 82% Indigenous workforce retention level was achieved,<br />

on par with the non-Indigenous workforce.<br />

• 18.5% of employees were from the local Borroloola area.<br />

• 13 apprentices were employed at MRM in fields including carpentry,<br />

electrical, plumbing, fitting and boiler-making.<br />

Environment<br />

• No adverse impact was caused by mining operations to the<br />

surrounding environment.<br />

• There were no environmental breaches, fines, penalties or prosecutions.<br />

• Rehabilitated land area was four times greater than in 2009, including<br />

significant rehabilitation work on <strong>McArthur</strong> <strong>River</strong> and Barney Creek<br />

channels.<br />

• 40,000 native species were planted, more than double the amount<br />

planted in 2008 and 2009 together.<br />

• The first of three stages to rehabilitate Cell One of the tailings storage<br />

facility was completed, with a 500mm clay cap now covering the<br />

surface.<br />

• Local fauna continued to be well-supported, as shown through a<br />

range of biodiversity monitoring programs.<br />

Our communities<br />

• A direct economic contribution of $138 million was generated by MRM,<br />

an increase of 4% from 2009.<br />

• Local procurement within the Gulf region was valued at $7.2 million.<br />

• Procurement in the Northern Territory was valued at $60 million,<br />

an increase of 23% from $49 million in 2009.<br />

• The MRM Community Benefits Trust continues to commit $1.35 million<br />

annually to support programs which benefit environment, health,<br />

enterprise and job creation and cultural objectives.<br />

IN THIS edition<br />

Training 2 Community<br />

Environment<br />

Meet MRM’s new Cross Cultural<br />

Awareness Trainer<br />

Community Reference Group<br />

update<br />

3<br />

Latest results for Bing Bong and<br />

Sir Edward Pellew Islands annual<br />

marine monitoring program<br />

7<br />

People<br />

9<br />

Innova suggestion system a success


Local focus for cultural awareness training<br />

Yanyuwa/Garawa local Marlene Karkadoo has been engaged as MRM’s Cross Cultural Awareness<br />

Trainer to help all mine staff understand local beliefs and customs.<br />

MRM’s new Cross Cultural Awareness Trainer Marlene Karkadoo<br />

undertakes training sessions at the mine site every month.<br />

The training program, which used to be delivered by in-house<br />

personnel, supports the mine’s Indigenous Employment Strategy<br />

by creating a working environment in which there is greater<br />

understanding of local culture. Now delivered by an external<br />

contractor, the initiative has become an example for the way MRM<br />

can support the development of new small business enterprises in<br />

the Gulf region.<br />

Marlene, who is also the radio broadcaster for Voice of the Gulf<br />

Radio 102.9FM, is contracted to help all MRM employees gain a<br />

stronger understanding about customs and beliefs of Indigenous<br />

people in the Gulf Region. Day-to-day examples are used in the<br />

training to show how a cultural belief can change the way people<br />

behave in different situations.<br />

Marlene said she was enjoying the opportunity to work with MRM<br />

in this area.<br />

“It’s a good chance to put my studies into practice and to share<br />

knowledge of local customs and beliefs with the employees and<br />

contractors from MRM,” Marlene said.<br />

“The opportunity to work close to home and to continue to develop<br />

my career is invaluable,” she said.<br />

MRM General Manager Ettienne Moller said Marlene’s input into the<br />

training sessions had supported the continued improvement of the<br />

program and had received positive feedback from people who had<br />

taken part.<br />

“Our employees and staff are talking about how much they are<br />

learning from Marlene,” Ettienne said.<br />

“We have a strong, dedicated base of Indigenous workers at the<br />

mine and these sorts of training programs help us all to understand<br />

each other.”<br />

Training is compulsory for all employees and contractors. Marlene<br />

comes to the mine on the last Thursday of every month to provide<br />

the training.<br />

The program has been developed in consultation and with the support<br />

of Gurdanji Traditional Owners Billy Coolibah, Ronnie Raggett and<br />

Bruce Joy, together with other Traditional Owners in the Gulf Region.<br />

A message from the General Manager<br />

Ettienne Moller<br />

General Manager<br />

<strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

Xstrata Zinc Australia’s recently<br />

released 2010 Sustainability Report<br />

demonstrates the commitments<br />

delivered to the communities where<br />

we operate.<br />

For MRM, the report showed our contribution to the economy last<br />

year was more than $138 million, while procurement in the Northern<br />

Territory was valued at $60 million.<br />

We are appreciative of the top quality suppliers available to us in the<br />

Territory. If we can play our part in helping them grow into more<br />

sustainable businesses themselves, it’s a ripple effect to other<br />

communities and businesses – the returns are felt for generations<br />

to come.<br />

Closer to home, our local Borroloola employment figure is tracking at<br />

18.5%, demonstrating that our Pathways to Employment program<br />

continues to work well, bringing real local benefits. We continue to see<br />

outstanding performers drawn from our local community and again,<br />

I’m grateful for the opportunity to work alongside our locals.<br />

As we continue investigations into the proposed Phase 3 Development<br />

Project, spending time in the local community and talking face-to-face<br />

with people will be important. In July and August 2011, I will continue<br />

to be on the road with my team, consulting with the community about<br />

the proposed project.<br />

So far, the most common questions fielded have been about<br />

employment and training opportunities at the mine, management<br />

of MRM’s Tailings Storage Facility, and other benefits the Phase 3<br />

Development Project would bring.<br />

I would like to thank the communities for the great level of involvement<br />

at local information sessions and meetings.<br />

As we further our studies, we will continue to meet and consult with<br />

local communities and individuals. This is an important part of ensuring<br />

stakeholders are provided an opportunity to have their voices heard and<br />

for us to present the facts.<br />

2<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18


Community Reference Group update<br />

MRM’s proposed Phase 3 Development<br />

Project was the number one discussion<br />

topic at the Community Reference<br />

Group (CRG) meetings in March and<br />

July 2011, held at the Savannah Way<br />

Motel in Borroloola.<br />

Chaired by Syd Rusca, the meetings are designed to keep the local<br />

community updated with information about MRM’s activities and<br />

for the community to provide feedback to the mine on local interests<br />

and issues.<br />

At the meetings, CRG members asked whether the proposed Phase<br />

3 Development Project would provide more jobs for the region.<br />

Attendees were also interested in how MRM was managing water<br />

at the mine during the wet season.<br />

The group was advised the Phase 3 Development Project would provide<br />

an estimated 110 new jobs at the mine on construction completion,<br />

with many more available throughout the construction period.<br />

MRM General Manager Ettienne Moller also confirmed the <strong>McArthur</strong><br />

<strong>River</strong> habitat was re-establishing quickly.<br />

Since the meeting in March occurred, the Northern Territory<br />

Government confirmed the expansion requires an Environmental<br />

<strong>Impact</strong> Statement which will invite public comment.<br />

Other CRG discussion points were:<br />

• the Glyde <strong>River</strong> Biodiversity Offset proposal, which MRM feels<br />

would be a positive opportunity to work closely with Traditional<br />

Owners in managing the offset zone<br />

• the employment of local contractor Marlene Karkadoo to provide<br />

Cross Cultural Awareness Training at the mine<br />

• updates to MRM’s Pathways to Employment program.<br />

At the March meeting, the CRG was invited to attend a site tour,<br />

which took place in mid-April 2011 with a high level of attendance.<br />

CRG members are encouraged by MRM to provide information<br />

and feedback from meetings to respective community groups and<br />

organisations and members of the community.<br />

May Raggett, Ronnie Raggett and Chairman of the MRM CRG,<br />

Syd Rusca, attended the meeting in March 2011.<br />

The MRM CRG site tour in April 2011 was well attended, with Ettienne<br />

Moller hosting the group. Stan Allen, shown, is both a CRG member<br />

and a Director of the MRM Community Benefits Trust.<br />

Community Benefits Trust – grants discussed in June 2011<br />

Grants for NAIDOC Week celebrations and Boonu Boonu Cultural<br />

Festival were among several applications discussed at the most<br />

recent MRM Community Benefits Trust Board meeting held in<br />

June 2011.<br />

Grant recipient: Mabunji – NAIDOC Week Celebrations and<br />

Boonu Boonu Cultural Festival<br />

A $25,000 grant was approved, making the Trust the largest<br />

financial contributor to the Festival in 2011. The funding, which<br />

supports the Trust’s culture and art objectives, will help build<br />

the event as the only traditional Indigenous dance festival in the<br />

Northern Territory. Future funding opportunities are also being<br />

considered.<br />

Grant recipient: Barkly Regional Arts Inc – Borroloola and<br />

<strong>McArthur</strong> <strong>River</strong> Song People Sessions<br />

A grant of more than $73,000 was approved for development and<br />

recording of traditional songs and stories in a music CD. The Song<br />

People Sessions, a project aimed at preserving and maintaining the<br />

Indigenous language of the Gurdanji, Garawa, Mara and Yanyuwa<br />

people, is being undertaken in partnership between Barkly Regional<br />

Arts, the Winanjjikari Music Centre from Tennant Creek, the<br />

Waralungku Arts Centre and Li-Kurlurluwa Language Centre.<br />

Grant application: Borroloola Business Hub<br />

Identified as a priority in the MRM Community Benefits Trust<br />

Annual Plan 2011, the Trust Project Officers continue to work<br />

with stakeholders in relation to establishment of a business hub<br />

in Borroloola. To date, the Trust has established a joint working<br />

relationship with the Northern Territory and Federal Governments,<br />

worked with the Northern Territory Governments to identify land<br />

options, tenancy arrangements, infrastructure requirements and<br />

a 100-year flood survey, and held meetings with Northern Land<br />

Council, Traditional Owners, Mabunji and MAWA to discuss<br />

preferred sites.<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18<br />

3


MRM employees get fitter, healthier<br />

and more active<br />

Prevention is the key to maintaining a<br />

safe and healthy working environment,<br />

with MRM Injury Prevention Advisor<br />

Jessica Rash taking up the challenge to<br />

help employees achieve better health.<br />

Jessica’s appointment at MRM has brought a renewed focus to<br />

improving the health and wellbeing of employees.<br />

A qualified physiotherapist, Jessica is reviewing the MRM work<br />

environment, ultimately aiming to vastly improve the physical and<br />

mental health of employees.<br />

Some of the initiatives which MRM has recently adopted or is about<br />

to introduce include:<br />

• Continued safety surveillance to identify, monitor and control<br />

potential health hazards in the workplace.<br />

• Completion of the latest Occupational Noise Survey, a study<br />

carried out every five years under the Northern Territory<br />

Government’s Workplace Health and Safety Act.<br />

• Undertaking baseline assessment of cadmium levels on site. MRM<br />

is committed to meeting Australian Standards for cadmium, which<br />

is a heavy metal detectable in mineral deposits containing zinc.<br />

It is primarily taken into the body via the lungs and by the digestive<br />

system. The assessment involved volunteers providing urine<br />

samples, which have been sent to a lab for analysis.<br />

New Starter – Jessica Rash<br />

Injury Prevention Advisor<br />

What experience and skills do you bring to MRM?<br />

I am a qualified physiotherapist and have worked in the coal mining<br />

industry for the past 2.5 years. This has involved helping rehabilitate<br />

employees back to work and working with other health advisors<br />

and occupational therapists on site-based injury prevention projects.<br />

My role will enable MRM to shift some focus to the ‘occupational<br />

health’ side of OH&S.<br />

• Undertaking work organisation, safe work practice and fatigue<br />

management assessment, which helps ensure all employees<br />

continue to present as ‘fit for work’.<br />

• Providing on-site physiotherapy treatment to rehabilitate injured or<br />

ill workers, with the aim of assisting workers return to their normal<br />

duties as quickly as possible.<br />

• Tailoring exercise programs to assist individual employees to reach<br />

specific goals. Programs take into account existing injuries and, in<br />

the case of injured workers, current injuries.<br />

• Providing core strength and stability classes through the<br />

gym, which take place every Wednesday evening at 6.45pm<br />

and 7.30pm.<br />

Jessica said classes at the gym had so far proven popular with MRM<br />

employees.<br />

“The number of people attending classes each week continues to<br />

increase. Participants report having improved their abdominal, back,<br />

buttock and leg strength, as well as their posture and balance,”<br />

she said.<br />

“Improved core strength reduces the passive strain on joints<br />

by improving muscular control. The bottom line is, a stronger<br />

core reduces injury risk. It even helps employees stand and sit<br />

up straighter!”<br />

For more information about MRM’s health and mobility initiatives,<br />

contact Jessica on 8975 8141 or email jrash@xstratazinc.com.au.<br />

What brought you to MRM?<br />

MRM provided an opportunity to progress from a ‘practitioner’ level<br />

role into an advisor role. The opportunity to work with a progressive<br />

company will enable me to gain more knowledge and increase<br />

practical skills.<br />

What would you like to achieve in your role during your<br />

time at MRM?<br />

I hope to have a big impact on health and wellness at MRM. I’d like<br />

to see regular training for topics relating to occupational health,<br />

particularly intervention strategies to reduce injury and illness. I’d like<br />

to see an increased focus on ‘fitness for work’ in terms of fatigue<br />

management, physical fitness and exercise. Ultimately, I’d love to<br />

see our recordable injuries and injury frequency rates reach zero!<br />

Of course, as a physiotherapist, I’m also enjoying providing physio<br />

treatment when injuries happen so our workers can sustainably<br />

return to work.<br />

What is something you enjoy doing on weekends?<br />

I love going to my aerobics classes on the weekend. It’s an<br />

opportunity to take the back seat with exercise, while having so<br />

much fun. After living in small mining towns for the past 2.5 years,<br />

I have missed this activity so much.<br />

If you found $100, how would you spend it?<br />

I would take my fiancé out for a nice night.<br />

What are you currently reading?<br />

Wedding magazines and property investment magazines.<br />

4<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18


Award-winning MRM Emergency Response<br />

Team back in training<br />

<strong>McArthur</strong> <strong>River</strong> Mine’s ERT undertaking a mock rescue in the Roadside Accident Training.<br />

Last year’s success at the North<br />

Australian Emergency Rescue<br />

Competition has seen MRM’s<br />

Emergency Response Team (ERT)<br />

return to training harder than ever in<br />

preparation for the 2011 competition.<br />

Further training with Hazardous Material and Vertical Rope Rescue is<br />

also underway, helping ensure the ERT is fully skilled in all areas.<br />

The ERT members participating in these courses were: Ed Doerr, Paul<br />

Fletcher, Josh Dean, Graham Howard, Steven Hogarth, Aaron Homan,<br />

Anthony Koursaris, Julie McGinnigle and David D’Antoine (Borroloola<br />

local police).<br />

In 2010, the MRM team won four of the six events and took home<br />

the Best Overall Team prize in the competition. These achievements<br />

demonstrate the team’s readiness and ability to swing into action<br />

using best practice emergency response methods if the need arises.<br />

MRM Health, Safety and Environment Manager Gary Taylor said the<br />

team worked closely with local authorities to ensure their response<br />

strategies were fully coordinated.<br />

“The Borroloola police play an important role in our planning and<br />

training, ensuring our region has the best emergency response<br />

possible. We feel this provides a great benefit not only for MRM,<br />

but for the wider Gulf Region,” he said.<br />

Occupational First Aid training was conducted in April 2011, followed<br />

by Road Accident Rescue training, which involved David D’Antoine<br />

from the Borroloola police station.<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18<br />

5


Environment update<br />

An additional 3,000 plants are<br />

now growing successfully along<br />

the <strong>McArthur</strong> <strong>River</strong>, following a<br />

concentrated rehabilitation focus<br />

by the MRM environmental team.<br />

MRM Health, Safety and Environment Manager Gary Taylor said more<br />

plants were on their way from Darwin nurseries and more seedlings<br />

were being propagated in the site nursery.<br />

“The rehabilitation efforts have been successful so far. We’re seeing<br />

grass and tree species growing to more than two metres high out by<br />

the river and nine metres by the creek,” he said.<br />

Last year, MRM used an irrigation sled with sprinklers, which was<br />

purpose-built and designed by the <strong>Mining</strong> Infrastructure team to plant<br />

tube stock.<br />

“This meant tube stock could be planted in the dry season and<br />

remain unaffected by access problems associated with the wet<br />

season,” Gary said.<br />

This approach will be used again in 2011, with a second sled under<br />

construction.<br />

In addition to the priority focus on rehabilitation, weed management<br />

activities have continued successfully.<br />

Large areas have been sprayed by a helicopter to manage Devil’s Claw<br />

on the southern side of the river.<br />

Traditional Owner Billy Coolibah worked with MRM’s Environment<br />

Department to ensure the program of work did not have any impact<br />

on local cultural sites of significance.<br />

MRM Health Safety and Environment Manager Gary Taylor<br />

inspects the successful replanting of native grasses along<br />

<strong>McArthur</strong> <strong>River</strong> in May 2011.<br />

New trees and plants along the Barney Creek channel are<br />

well established.<br />

Mine report<br />

In an historic first for MRM, the first drill rig ever purchased<br />

by the mine arrived on site in May 2011, removing the need<br />

for MRM to work with contracted machines.<br />

Drill rigs, used in the open cut mine as part of everyday operations,<br />

allow essential quality testing work to be carried out on the ore body.<br />

By drilling into the ground, a core sample can be taken. This allows<br />

MRM’s mining engineers to assess the lay of the ore, thereby<br />

helping them in planning ongoing mining operations.<br />

MRM Mine Manager Karissa Grenfell said the purchase of the<br />

MRM’s first drill rig represented a commitment by MRM to up-skill<br />

employees, together with an opportunity to reduce costs and<br />

increase control over drilling operations.<br />

“MRM is on its way to owning and operating its own drill fleet.<br />

It means our own employees have exposure to learning skills in<br />

production drilling and represents new employment and training<br />

opportunities,” Karissa said.<br />

“It also means MRM’s mining operations can be carried out more<br />

efficiently.”<br />

Three more drill rigs are due to arrive on site by the end of 2011.<br />

Outside of drilling work, water management continues to remain<br />

a big focus for the <strong>Mining</strong> Department. The <strong>Mining</strong> Infrastructure<br />

team has designed and built a new water evaporation facility to aid<br />

in evaporating water from the open cut pit during the critical drier<br />

months prior to the wet season. Works to construct the pump and<br />

pipe, which will deliver pit water to the facility, are now underway.<br />

MRM’s <strong>Mining</strong> Department continues to be on track for production<br />

targets in 2011 and has maintained a high level of safety throughout<br />

this time.<br />

6<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18


Annual Marine Program<br />

MRM’s environmental management<br />

at Bing Bong and the Sir Edward<br />

Pellew Islands continues to meet<br />

the Australian and New Zealand<br />

Environment Conservation Council<br />

Interim Sediment Quality Guidelines<br />

(ANZECC ISQG) as well as Australian<br />

and New Zealand (ANZ) Food Standard<br />

Guidelines.<br />

Each year, independent scientists from the Australian Institute of Marine<br />

Science (AIMS) monitor the Bing Bong and Sir Edward Pellew Islands<br />

areas to test if MRM’s operations have impacted the environment.<br />

The annual program assesses the quality of the seawater, seafloor<br />

sediments, and the health and population of seagrass and molluscs,<br />

with data collected from 14 sample collection sites around the islands<br />

and the beach.<br />

Results of the 2010 monitoring and survey work conducted by AIMS<br />

provide evidence that mining and related operations at MRM are<br />

not measurably impacting on seawater, surface sediments, oysters or<br />

seagrass along the Bing Bong Coast, Sir Edward Pellew Islands and the<br />

eastern beach area adjacent to the swing basin.<br />

Results confirm zinc and lead concentrations in the Bing Bong swing<br />

basin are within set Australian Guidelines and lead concentrations in<br />

the marine food chain have not exceeded food standard guidelines.<br />

Results of metal concentrations in sediment at the Bing Bong<br />

western beach site continue to show elevated levels of lead and zinc,<br />

however, concentrations remain lower than the ANZECC (2000)<br />

ISQG guidelines.<br />

The AIMS report highlights the efforts MRM has put into improvements<br />

for dust management during loading and unloading operations and<br />

control measures put in place, which include the new roof built for<br />

the Aburri barge – a measure intended to bring the elevated levels of<br />

lead and zinc in sediment at the Bing Bong site down for the 2011<br />

AIMS report.<br />

Annual average metal concentrations in Bing Bong molluscs<br />

1998 – 2010*<br />

Concentration (mg/kg dry wt)<br />

1000.00<br />

100.00<br />

10.00<br />

1.00<br />

0.10<br />

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />

Copper ug/L<br />

Zinc ug/L<br />

Cadmium ug/L**<br />

Lead ug/L**<br />

* No studies were conducted in 2006 due to access issues to the islands.<br />

**The FSANZ 2009 maximum accepted level for cadmium and lead is 2 mg/Kg.<br />

Marine scientists tested oysters in the Sir Edward Pellew Islands area<br />

and found zinc/lead concentrations were within Australian and New<br />

Zealand Food Standard guidelines.<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18<br />

7


Mill report<br />

The Mill team has achieved great results over the past few months to install a<br />

more efficient filter completed earlier than planned.<br />

Metallurgy Manager Sam Strohmayr said MRM’s processing mill<br />

requires two major filters, which are an important step in processing<br />

the ore body to produce zinc/lead bulk concentrate.<br />

The recent installation of a new Filter 1 complements work to<br />

rebuild Filter 2 earlier this year. Both filters are now more efficient.<br />

“In particular, the new Filter 1 has a greater capacity than its<br />

predecessor and has a reduced need for maintenance. This makes<br />

the mine production process more efficient and helps to minimise<br />

costs,” he said.<br />

Sam said installation of the new Larox filter ahead of schedule was<br />

a result of a great team effort.<br />

“The fantastic work to get the new filter operational as quickly as<br />

possible, without any safety incidents, was a credit to all involved.<br />

Thanks must go to the team for this achievement,” he said.<br />

The project to install and commission the new Filter 1 involved a<br />

number of complex tasks.<br />

It took the crew 24 days to remove the old filter, modify the<br />

structural steel and concrete supports, construct a new hydraulic<br />

room and install the filter, bringing the project in four days ahead<br />

of schedule.<br />

The filter is a new version of the Larox pressure filter technology.<br />

It has 20 plates and 65mm chambers, which means the filter<br />

provides 15% more capacity than its predecessor. Additionally,<br />

the filter has four fewer plates, which means maintenance<br />

requirements are reduced.<br />

The new filter is raised from the floor, which streamlines the<br />

cleaning process.<br />

It also has an upgraded hydraulic system, which further reduces<br />

the cycle time and increases production.<br />

While works were underway to install and commission Filter 1,<br />

Sam said Filter 2, which had been recently rebuilt, performed<br />

well and had filtered the majority of bulk concentrate production<br />

in May 2011.<br />

“This was a record for a single filter in a month and further<br />

demonstrates that the work we put into the filter area in the past<br />

months is starting to pay dividends,” Sam said.<br />

In the background, works are advancing with the Heavy Medium<br />

Plant (HMP) project. The design work is well advanced and tenders<br />

have been let for longer lead-time items, such as vibrating screens,<br />

thickener and magnetic separators.<br />

Overall, production for the last quarter was in line with expectations,<br />

with better-than-expected performance in the second half of April<br />

and all of May 2011, having offset a slow start to the quarter.<br />

A new record was achieved in May 2011, with milled tonnage<br />

reaching 216,718 tonnes, eclipsing the previous record in<br />

December 2009.<br />

A tidier plant and a strong focus on lead hygiene in the last quarter<br />

is showing results, with decreases in blood-lead levels achieved<br />

across the concentrator teams.<br />

“The first-class efforts of the safety team to educate staff through<br />

safety briefs and presentations have had a real effect on improving<br />

our hygiene habits,” Sam said.<br />

“This, along with project initiatives such as installation of the second<br />

air scrubber for the filter area, will have a lasting impact on further<br />

improving the environment we work in.”<br />

The new Larox Filter 1 is now installed and operational at the Mill.<br />

Filter cloth is installed on the new Filter 1 by Jim Rego from Outotec<br />

and Scott Walter from Blue Sea Cranes.<br />

8<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18


Innova suggestions bring innovative<br />

improvements to MRM<br />

The Xstrata Zinc Innova Suggestion System has proven successful,<br />

with around one in every three employees at MRM contributing to<br />

improved business operations.<br />

Innova was launched in June 2010 and encourages employees to<br />

submit ideas that could help save time and costs, prevent injuries or<br />

help our operations succeed, not only on-site, but across the Xstrata<br />

Zinc group worldwide.<br />

MRM General Manager Ettienne Moller said the aim was to build a<br />

continuous improvement culture in Xstrata Zinc.<br />

“Our employees know best what needs to be done to help us<br />

continuously improve,” Ettienne said.<br />

“The number of suggestions generated by employees is fantastic,<br />

but more importantly, I’d like to highlight that a large percentage of<br />

suggestions have either been adopted, or are in the process of being<br />

adopted,” he said.<br />

More than 100 suggestions have been received, with 34<br />

implemented and 34 budgeted for next year. Some suggestions are<br />

still being reviewed and a small number declined.<br />

Suggestions, big and small, have included:<br />

• ways to improve living arrangements and health and fitness facilities<br />

at Bing Bong such as the expansion of the gym<br />

• increasing storage space around the mine site<br />

• adding resources such as the installation of a water heater in the<br />

laboratory<br />

• improving safety with better signage and comfort with aluminised<br />

heat protection tape for Cobra helmet visor carriers<br />

• reducing energy consumption across the board.<br />

In the operational area, Technical Superintendent Dan Smith made<br />

a suggestion relating to the ore processing and grinding procedure,<br />

which has already led to a 30% reduction in power usage for this<br />

section of the mine.<br />

The suggestion was to allow the trialling of ceramic media in the<br />

regrind mills. Grinding, which involves breaking coarse ore material<br />

into finer particles, is part of the process of recovering the valuable<br />

zinc/lead bulk concentrate from ore mined in everyday operations.<br />

Inside the grinding mills, silica sand has previously been used as a<br />

‘grinding media’, which helps to break the ore into much smaller<br />

pieces. Dan’s suggestion was to introduce ceramic beads as media<br />

instead, which had been proven effective in other mills.<br />

“Not only were ceramic beads more affordable, but they may also<br />

offer ‘wear-life’ improvements, which means they may last for<br />

longer. Importantly, this step has already seen impressive reductions<br />

in power use, leading to lower production costs,” Ettienne said.<br />

“It was a great suggestion and has helped improve efficiency of<br />

our processes at the mine.”<br />

A sustainable development target at MRM is to generate one<br />

suggestion per employee per year. For every idea, Xstrata Zinc<br />

donates 2 Euros to the United Nations Children’s Fund whether<br />

the suggestion is adopted or not.<br />

“We are interested in everyone’s suggestions,” Ettienne said.<br />

“Everyone plays a part in the success of production and operations<br />

at MRM. We encourage every MRM employee to come forward<br />

with their suggestions – it might make a real difference to the way<br />

we do things.”<br />

So what’s your idea? To put forward a suggestion, contact Julie<br />

Savage on 08 8975 8149 for an application form, or simply go<br />

to the Innova link on the MRM intranet.<br />

Innova suggestions received<br />

Planned<br />

38<br />

Implemented<br />

34<br />

Under review<br />

19<br />

Declined<br />

15<br />

Note: Total Number of suggestions 106<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18<br />

9


New starters<br />

Max MacRae<br />

Management Accountant<br />

working in MRM’s Finance<br />

team.<br />

What is something you enjoy doing on weekends?<br />

I enjoy getting out and about in Darwin, socialising and sightseeing.<br />

Cooking, gambling and motorbike riding are some hobbies I have<br />

fun doing. I also love to travel and am currently saving up for a trip<br />

to Canada and New York.<br />

If you found $100, how would you spend it?<br />

I’d take a trip to the casino. Obviously, I’d need to triple that $100!<br />

What are you currently reading?<br />

I’m not a huge fan of reading. I’d prefer to watch movies. I recently<br />

watched Source Code, which was pretty good.<br />

What experience and skills do you bring to MRM?<br />

I am a qualified accountant.<br />

What brought you to MRM?<br />

MRM presented an opportunity to move from the Graduate Program<br />

with Xstrata in Mount Isa into my current role.<br />

Kree Turner<br />

Administrative Officer<br />

and Travel Coordinator<br />

for MRM.<br />

What would you like to achieve in your role during your time<br />

at MRM?<br />

I would like to gain a strong understanding of MRM’s business<br />

fundamentals and focus on improvements to the finance function.<br />

What is something you enjoy doing on weekends?<br />

I like breakfast at the Parap Markets.<br />

If you found $100, how would you spend it?<br />

I’d buy lotto tickets and see if my luck continued.<br />

What are you currently reading?<br />

Paul Carter’s This is Not a Drill: Just another glorious day in the<br />

oilfield and Loren C. Steffy’s Drowning in Oil: BP & the reckless<br />

pursuit of profit.<br />

Nici Scotton<br />

Accounts payable<br />

clerk working in<br />

MRM’s Finance team.<br />

What experience and skills do you bring to MRM?<br />

I have been working in accounts for about 7 years now, having<br />

started from the basics and worked my way up. Prior to MRM,<br />

I worked for Xstrata Coal in its Brisbane head office.<br />

What brought you to MRM?<br />

Having moved from Brisbane to Darwin in August 2010, this job<br />

happened to open up just at the right time. As I’d worked for<br />

Xstrata Coal in Brisbane previously, it was easy to jump straight into<br />

my new role at MRM.<br />

What would you like to achieve in your role during your time<br />

at MRM?<br />

The thing I enjoy most about my job is that it’s so diverse. It keeps<br />

me busy and on my toes every day, with each day bringing different<br />

duties and more problems to solve. I like to treat this as a challenge,<br />

which is always fun. I’m happy in my current role and look forward<br />

to staying in accounts payable.<br />

What experience and skills do you bring to MRM?<br />

I have more than 20 years experience in Executive Secretarial and<br />

Personal Assistant roles in Australia and overseas. My most enjoyable<br />

role was as the PA to the General Manager of Banyan Tree Hotels in<br />

the Maldives and Indonesia. My most frantic role was as Executive<br />

Secretary to the Structural Division of Connell Wagner in Adelaide.<br />

My most settled role was four years as PA to the Director of<br />

Information Management, Queensland Police Service.<br />

What brought you to MRM?<br />

It’s been a long-term goal of mine to get into the mining industry.<br />

In two years, I’ve fallen in love with the Northern Territory, so a site<br />

close to ‘home’ was definitely high on my priority list. The hippy in<br />

me was drawn to the idea of a ‘green camp’.<br />

What would you like to achieve in your role during your time<br />

at MRM?<br />

I’d really like to develop the travel role as the operation grows<br />

and becomes busier. I’d like to streamline and integrate some of<br />

our systems and I constantly strive to make sure that the ‘movement’<br />

of our employees and contractors makes them want to come back.<br />

What is something you enjoy doing on weekends?<br />

I’m happiest in a pair of overalls and Blundies, knocking stuff<br />

down (read: renovating!). I should definitely have shares in<br />

Bunnings, given the amount of time I spend there. Unfortunately,<br />

I can’t do much more on my current home, an ’81 Denning coach,<br />

but am always looking for the next project.<br />

If you found $100, how would you spend it?<br />

Right now, I’d ‘de-mine’ myself with a manicure, pedicure and<br />

massage. Better make it $500!<br />

What are you currently reading?<br />

The Tao of Poo and the Te of Piglet... again.<br />

10<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18


Safety report<br />

The emphasis on safety at MRM has produced good results, with recent figures<br />

showing the Total Recordable Injury Frequency Rate (TRIFR) continues to decline.<br />

At the end of June 2011, the Lost Time Injury Frequency Rate (LTIFR)<br />

was 0.8 and the TRIFR fell from 6.9 in March 2011 to 6.7 at the end of<br />

June 2011.<br />

Both outcomes are in line with MRM’s targets for 2011, which are<br />

0.9 for LTIFR and 8.9 for TRIFR.<br />

MRM Health, Safety and Environment Manager Gary Taylor said<br />

improved communication on site had contributed to these results.<br />

“Good work and open communication from the safety team has led<br />

to increased awareness among MRM employees and contractors about<br />

working safely on site,” he said.<br />

In the past months, MRM has undertaken a review of its catastrophic<br />

hazards. As part of increasing safety awareness about these hazards,<br />

new posters have been developed and displayed in prominent areas<br />

around site.<br />

In addition, reviews of risk and risk verifications across the departments<br />

were undertaken through use of Xstrata Zinc’s corporate risk<br />

management database, CURA.<br />

Continued analysis of injuries show the main types were cuts to hands.<br />

“MRM is taking a proactive approach to managing this type of injury<br />

through trialling different types of cutting implements used on site.<br />

This aim is to ultimately provide a set list of approved items for site,<br />

hopefully reducing cut injuries,” Gary said.<br />

Gary said it was now mandatory for employees and contractors to<br />

wear gloves when in any operational working environment, such as<br />

the open cut pit area and the processing mill.<br />

“This proactive approach makes gloves a standard part of site Personal<br />

Protective Equipment (PPE),” he said.<br />

“The uptake on this is great to see.”<br />

Frequency<br />

18 3<br />

15<br />

12<br />

9<br />

6<br />

3<br />

0<br />

Jul 10<br />

Aug10<br />

Sep10<br />

Total Recordable Injury Frequency Rate<br />

Employee<br />

Oct10<br />

Nov10<br />

Dec10<br />

Contractor<br />

Jan11<br />

Feb11<br />

Mar11<br />

Apr11<br />

TRIFR 12MMA<br />

May11<br />

Jun11<br />

2<br />

1<br />

0<br />

# of injuries<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18<br />

11


Borroloola Golden Heart Awards Night<br />

MRM was a sponsor for the inaugural Borroloola Golden Heart<br />

Award Night, recognising the work volunteers undertake in the<br />

community.<br />

The event was held at the Savannah Way Motel in Borroloola on<br />

1 May 2011.<br />

The Golden Heart Award was presented to Glenn Thompson, long<br />

time coach of the Borroloola Cyclones and supporter of the healthy<br />

development of local children.<br />

Member for Barkly and Northern Territory Government Minister<br />

the Hon Gerry McCarthy, with Val Sieb who received a certificate<br />

of recognition for services to the community at the Golden Heart<br />

Awards. Val is the mother of Samantha Sieb, Maintenance Service<br />

Team Supervisor at MRM.<br />

Roz Kerr of MRM's Maintenance Service Team won a certificate of<br />

recognition for services to the community. The award was accepted<br />

by her mother, Mavis Kerr (shown).<br />

25 th Annual Borroloola Show<br />

MRM held a display at the 25 th annual Borroloola Show on 24 – 25 June 2011 at the Borroloola Showgrounds. The display provided<br />

information about employment opportunities, environmental management, the proposed Phase 3 Development Project and more.<br />

Borroloola School Grade 4-5 student Kayla Gallar<br />

won first prize in the MRM Kenny the Kookaburra<br />

Colouring Competition, which received more than<br />

150 entries from local Borroloola children.<br />

MRM Community<br />

Relations Advisor<br />

Kirsty Hogarth,<br />

second prize winner<br />

Blake Coolwell<br />

and local artist<br />

Alan Baker.<br />

Second prize – Blake<br />

Coolwell, Grade 4–5<br />

Borroloola School.<br />

12<br />

McARTHUR RIVER MINING AUGUST 2011 – EDITION 18<br />

Third prize –<br />

Braithan Baker,<br />

Transition,<br />

Borroloola School.<br />

Kirsty Hogarth,first prize winner Kayla Gallar,<br />

local artist Alan Baker, third prize winner<br />

Braithan Baker and Show President Val Sieb.


MEMORANDUM<br />

mrmprojenq@xstratazinc.com.au NOVEMBER 2011 EDITION 19<br />

MRM’s Polarised Supply Team having a smurfing good time<br />

– Harrison Rowe, Kane Hartell, Lance Duncan and Jason<br />

Carr won Best Dressed on Day 2.<br />

Miners turn Pro Golfers.<br />

Tee time for local charities<br />

Sam Wilkinson, Matt Miller, Mike Braun and Trent Lopez<br />

from CBC having fun at MRM Golf Day fundraiser.<br />

In golf, as in life, it’s the follow through that makes the difference and NT<br />

children’s charities couldn’t agree more.<br />

MRM’s annual charity golf tournament has smashed all records by<br />

raising $43,686 for NT children’s charities – a 59% increase on the<br />

previous year, and a staggering five times more than 2 years ago.<br />

The 15-year-old event has gathered enough momentum to attract<br />

players from every State in Australia, making it an annual drawcard<br />

for friends of MRM.<br />

More than 320 MRM staff, suppliers and volunteers gathered for the<br />

two-day event, split over two weeks, to play a nine-hole, four-person,<br />

Ambrose event.<br />

While healthy competition was alive and well for the event,<br />

participants had one common goal; to raise as much money for<br />

charity as possible.<br />

So popular was the event this year that MRM Contracts Advisor and<br />

event organiser Peter Patsalou had to move it from the nine-hole<br />

Garden Park Golf Links at Mindil Beach to the 18-hole Palmerston<br />

Golf Course outside of Darwin.<br />

“It’s become the social event of the year. Our contractors and<br />

suppliers were responsible for the sponsorships and the prize<br />

donations so our special thanks must go to them for their generosity<br />

and their support in raising funds for charity,” Peter said.<br />

Fourteen major sponsors came on board this year, nine more than last<br />

year, with others also donating cash and premium gifts for auctions<br />

and prizes including return flights to the Gold Coast, scenic helicopter<br />

flights, big screen televisions, Darwin Harbour boat cruises and full<br />

day fishing charters to name a few.<br />

Suppliers proved to be the champion golfers this year with BOC<br />

Australia and KSB teams each taking out first place prizes over the<br />

two-day event. Not to be outshone, suppliers CBC won the ‘Best<br />

Dressed Team’ on Day 1 of the competition, sharing the mantle with<br />

MRM’s own Polarised Supply Team who won the prize on Day 2 for<br />

their Smurf homage.<br />

IN THIS edition<br />

Training 3 Community<br />

Environment<br />

4<br />

8<br />

People<br />

11<br />

$1 million partnership confirmed<br />

for Borroloola skills and jobs<br />

MRM Community Reference<br />

Group update<br />

Return of the birds<br />

MRM congratulates NT<br />

Trainee of the Year


A message from the General Manager<br />

Ettienne Moller<br />

General Manager<br />

<strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

I sincerely thank the community members for their valuable time and honest<br />

feedback to the proposed Phase 3 Development Project for MRM.<br />

Over the course of several months, I have met with 293 people who live,<br />

work and care for this region. I have been struck once again by the sense of<br />

community here and your enthusiasm to protect the future of your people,<br />

your local economy and your land.<br />

Your generosity with your time and feedback is particularly appreciated<br />

when I understand your involvement has been sought for other consultation<br />

programs in the region.<br />

We have been overwhelmed by your words of support for the mine operation<br />

and your practical ideas to ensure Phase 3 provides further benefit to the region.<br />

It’s particularly pleasing the MRM Community Benefits Trust and our<br />

Indigenous employment strategy have been so positively received by<br />

the community.<br />

I share your passion for the region and through the environmental assessment<br />

process for the development, I will ensure your views are represented and the<br />

mine endeavours to meet your expectations.<br />

We value our relationship with our community.<br />

Mine Report<br />

Taking a dig at production targets<br />

The latest and largest addition to the mining fleet, the monster<br />

EX3600 digger (pictured), is helping to meet production targets<br />

for 2011.<br />

Digging at a rate of 24,000 tonnes a day, up from the 10,000 tonnes/<br />

day of the machine it replaces, the digger is the jewel of the fleet.<br />

With a bucket size of 22 cubic metres, versus the standard 14 cubic<br />

metres, the 360 tonne EX3600 is the subject of operator envy.<br />

“The digger will be joined by other bigger trucks and diggers when<br />

we change our equipment next year but the new machine is giving<br />

our operators a chance to hone their skills for when they come on<br />

line,” <strong>Mining</strong> Manager Karissa Grenfell said.<br />

Smooth operator<br />

A shy driver who would prefer to remain anonymous has been<br />

highly commended by an independent monitor. This driver went<br />

through her shift unaware that all her actions were being carefully<br />

watched, her gear changes, the way she drove to the conditions<br />

and how she looked after her machine. This driver was described<br />

as being a standout.<br />

Karissa Grenfell commended the driver by saying she was a great<br />

endorsement of the training undertaken by MRM and the success<br />

of the heavy vehicle simulator, particularly with local Indigenous<br />

employees new to the mining industry.<br />

2<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19


$1 million partnership confirmed for<br />

Borroloola skills and jobs<br />

Minister Chris Burns (far right) at the launch of the Strong Start, Bright Future Program.<br />

Xstrata Zinc Chief Operating Officer and MRM Community Benefits Trust Chair<br />

Brian Hearne and Minister for Education and Training Chris Burns have signed a<br />

three-year, landmark $1 million partnership agreement to boost education and<br />

training in the Borroloola region.<br />

The Strong Start Bright Future Borroloola Employment Pathways<br />

agreement will provide a trainer for the Borroloola School and<br />

accredited training for students, computers and resourcing for a<br />

Frequent Attendee Rewards Program.<br />

Commencing in Semester 2 of this schooling year, the program<br />

aims to increase school attendance to 90% of all eligible students,<br />

and help equip students with skills necessary to sustain employment,<br />

whether at MRM or in another local industry.<br />

Brian Hearne said the partnership was a direct response to<br />

community feedback - inspire young people to stay in school,<br />

show them the way early, and they’ll be set for life.<br />

“As Chair of the Trust, I can say we were interested to support the<br />

Strong Start, Bright Future program for two main reasons. First,<br />

it builds on the earlier work we supported with The Smith Family<br />

to help encourage greater school attendance through mentoring,<br />

nutrition and work experience programs. This was in fact the first<br />

grant ever offered by the Trust and did a lot of good work over three<br />

years to get children and their families engaged,” Brian said.<br />

“Second, it makes sense for education to be tailored and targeted<br />

to ensure graduates have the skills needed to gain jobs within the<br />

local community.<br />

“We want the current and future generations of our communities<br />

to have the advantages and opportunities equal to people in other<br />

parts of Australia and the Strong Start, Bright Future program is a<br />

sensible approach to achieving great life-long outcomes for these<br />

students.”<br />

By the end of June 2011, the MRM Community Benefits Trust had<br />

reached a tally of $6.7 million invested into the community – 25%<br />

of which has been for education programs.<br />

“What we’re trying to do is address some of the barriers to<br />

employment we’ve found to be common – the low literacy and<br />

numeracy rates, family support issues and a low level of work<br />

‘readiness’. The program is part of our primary platform for<br />

attracting and retaining solid, local future employees,” Brian said.<br />

MRM has seen a significant increase in Indigenous employment at<br />

the mine from 4% in December 2006 to more than 22% in 2011<br />

which in reality, is a lift from 6 people to 59.<br />

Minister Chris Burns said the pathway from school into a rewarding<br />

job was clear through the program.<br />

“We know that students get a great education in the Territory<br />

if they go to school every day and this program is focused on the key<br />

outcomes of attendance, retention, and local jobs,” Dr Burns said.<br />

“Students at Borroloola School will be exposed to the employment<br />

opportunities at the mine from its actual operations through to the<br />

vast support network that supports its operations.<br />

“They will be given the opportunity to learn the skills necessary to get<br />

them jobs. It will provide them with a clear line of sight through school<br />

to a job, instilling a desire to learn and get ready for their future.”<br />

The Trust has also become a partner in the Government’s Frequent<br />

Attender Program contributing $75,000 per year under the<br />

partnership agreement to reward students who attend 80% or more<br />

of their schooling with sport, recreation and computing rewards.<br />

“Ultimately we want to provide meaningful, ongoing career<br />

prospects for the people of Borroloola, even after MRM reaches<br />

its mine life. In some ways, this is the best legacy we can leave,”<br />

Brian said.<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19<br />

3


MRM EIS Studies Continuing<br />

Studies for the Environmental <strong>Impact</strong> Statement (EIS) for the Phase 3<br />

Development Project are continuing.<br />

The EIS is a comprehensive analysis of any potential impact or<br />

benefit the project may bring to the environment, the community,<br />

traffic and roads, cultural heritage and local economy of Borroloola<br />

and surrounds.<br />

The Phase 3 Development Project proposes increasing MRM mine<br />

production to approximately 5 million tonnes per year resulting in an<br />

increase in bulk zinc/lead concentrate volume up to 800,000 tonnes<br />

per annum.<br />

The indicative cost of the project is $270 million and, subject to<br />

approval, works on the project would commence in 2012.<br />

In the past six months, intensive consultation has been conducted by<br />

MRM, with close to 300 people including government departments<br />

and agencies, community groups, businesses, Traditional Owners and<br />

other community members involved.<br />

The consultation allowed MRM to develop plans with the community<br />

to manage the impacts and pass on the benefits of the expansion.<br />

Through its EIS, MRM has identified housing, road maintenance,<br />

tailings and waste as areas requiring impact management plans,<br />

with the MRM Community Benefits Trust, local employment and<br />

suppliers and rehabilitation as areas of potential community benefit.<br />

See the MRM Community Reference Group story below for more<br />

information.<br />

MRM will continue to seek feedback and involvement about these<br />

plans as the EIS is finalised for submission to the NT Government.<br />

General Manager – MRM Ettienne Moller discussing community impacts<br />

and benefits of the proposed project at the Women’s Safe House meeting.<br />

Borroloola local Marjorie Kieghran visits her granddaughter MRM’s MST<br />

trainee Patricia Pluto on site before starting a tour of the mine.<br />

MRM Community Reference Group update<br />

The Phase 3 Development Project was the main topic of discussion when the MRM<br />

Community Reference Group met at the Savannah Way Motel in Borroloola in September.<br />

There was considerable interest shown in what MRM General<br />

Manager Ettienne Moller had to say about the results of the 130<br />

individual and group meetings and three mine site tours held<br />

during consultation.<br />

Ettienne provided the CRG with a response to the common themes<br />

raised during consultation (listed below). CRG members are<br />

encouraged to provide information and feedback from meetings to<br />

other community groups and members of the community.<br />

Employment<br />

Employing more locals, especially young people, was seen as a great<br />

opportunity for Borroloola as a result of the Phase 3 Development.<br />

There was strong support for the proposed Project based on its<br />

potential to provide increased local employment opportunities which<br />

delivered benefits for the worker as well as the wider community.<br />

MRM will require an increased operational workforce of<br />

approximately 25% if this development proceeds. This represents<br />

110 additional new jobs. Currently about 18.5% of the workforce<br />

is sourced from the local community, however there is potential<br />

for this to increase if the baseline skills and work readiness of local<br />

residents improves.<br />

Accommodation and Travel<br />

There was recognition that housing accommodation for workers,<br />

humbugging, drugs and alcohol were key factors in the success of<br />

both retaining employees in the community and retaining local jobs.<br />

Significant feedback was also raised regarding the difficulties<br />

created by medical patients seeking more advanced levels of medical<br />

care than is available within Borroloola and the inhibitors to long<br />

distance travel to obtain it.<br />

MRM Community Benefits Trust<br />

There is clear support in the community for the MRM Community<br />

Benefits Trust and the benefits it provides in the community,<br />

particularly through programs targeting youth. Community<br />

members also expressed curiosity about the decision making<br />

process, the types of programs the Trust will support and the level<br />

of support available through the Project Officer, demonstrating<br />

an interest in greater communication and participation. The most<br />

consistent question raised however, was whether the amount<br />

invested in the Trust annually by MRM would increase and whether<br />

the life of the Trust extended in line with the Project. The Trust<br />

agreement is currently scheduled for review in late 2015.<br />

4<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19


Road Maintenance<br />

There were no concerns about the increase in traffic on the<br />

highway. Stakeholders were more concerned about the current<br />

state of maintenance of roads and road safety.<br />

MRM will work with the NT Government to highlight the<br />

importance of undertaking an upgrade to the existing road,<br />

whether the project proceeds or not.<br />

Environment, Rehabilitation and Mine<br />

Closure Plans<br />

Increasing water testing at several locations at the mine and Bing<br />

Bong loading facility, as well as more transparency with monitoring<br />

results, were important to the community during consultation.<br />

There was a high level of interest expressed by the Gurdanji<br />

community about being involved in the rehabilitation of the<br />

rivers and site.<br />

MRM will consider providing the community and key stakeholders<br />

with increased access to and more detailed information on the<br />

monitoring results achieved, together with increased access to<br />

MRM environmental representatives to discuss the results.<br />

MRM will explore opportunities to engage a ranger group to be<br />

actively involved in environmental management and care for country<br />

around the mine in conjunction with MRM environmental personnel.<br />

Economic Contribution<br />

The potential for increased requirements of goods and services from<br />

suppliers as a result of the Project was recognised positively by the<br />

stakeholders consulted.<br />

Tailings and Waste<br />

There was a high level of satisfaction with how the Tailings Storage<br />

Facility (TSF) performed in the last wet season although there is a<br />

level of concern about the TSF, its design, impact on Surprise Creek<br />

and its function. However this topic ranked low in the priorities<br />

reflected by the frequency with which stakeholders were keen to<br />

discuss them.<br />

There were no concerns about the proposed increase in height of<br />

the Overburden Emplacement Facility (OEF), only interest in how it<br />

would be ultimately rehabilitated at completion.<br />

MRM is investigating a range of strategies to offset the visual<br />

impact of the higher OEF.<br />

Bing Bong Loading Facility<br />

There was no concern raised regarding the increase in ship<br />

movements in the Gulf of Carpentaria and loading via the Aburri<br />

barge at sea, only interest in environmental monitoring along the<br />

Bing Bong coast and nearby Sir Edward Pellew Islands.<br />

Cultural Heritage Management<br />

The work MRM has done to protect cultural heritage management<br />

to date was acknowledged. Questions were raised around the<br />

potential impact of the Project on sites of cultural significance,<br />

particularly Barramundi Dreaming. There was also a lot of interest<br />

in conducting caring for country initiatives on the MRM site by<br />

Traditional Owners.<br />

Cell One of the Tailings Storage Facility is now capped with 500mm of clay and undergoing rehabilitation.<br />

Health, Safety, Environment and Community Manager Gary Taylor takes Borroloola locals through<br />

rehabilitation to date on one of three mine site tours conducted for the Phase 3 consultation process.<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19<br />

5


Contracts Manager for Borroloola-based Cairns Industries Allen Cairns (left) at work<br />

on the heavy medium upgrade with MRM’s Metallurgical Manager Sam Strohmayr.<br />

NT businesses benefit from MRM<br />

infrastructure upgrade<br />

Local industry stands to benefit most<br />

from a $46 million MRM processing<br />

upgrade, with 55 local Northern<br />

Territory and Borroloola-based<br />

suppliers chosen to deliver at least<br />

a quarter of the project’s value.<br />

Construction has commenced on a new heavy medium plant, a facility<br />

designed to separate ore from waste rock using gravity, to support<br />

market needs for zinc and lead ore.<br />

Chief Operating Officer for Xstrata Zinc Australia Brian Hearne said<br />

the investment demonstrated a commitment to the long-term viability<br />

of the zinc-lead business in the NT, and to local businesses.<br />

“The growth of MRM has been limited by our existing infrastructure<br />

on site. The heavy medium plant will help us meet current market<br />

demand more cost effectively,” Mr Hearne said.<br />

“Our policy is to prefer local suppliers where they can competitively<br />

offer quality goods and services. I’m pleased our NT suppliers are<br />

doing well out of this investment decision.”<br />

In 2010, MRM’s procurement within the NT economy grew by 23%<br />

from $49 million in 2009 to $60 million.<br />

For the heavy medium plant construction, Borroloola local business<br />

Cairns Industries won contracts totalling more than $2 million<br />

to supply mobile concrete batching plants, 2000 cubic metres of<br />

concrete and excavators for the project, bringing the value of their<br />

current contracts with MRM up to $2.7 million.<br />

Contracts Manager Allen Cairns said the resources industry in the<br />

Roper Gulf Shire was driving the business’s growth.<br />

“We’ve been working with MRM for a number of years now.<br />

Right now this contract is our biggest single contract on the books.<br />

That money will be invested back in the business,” Allen said.<br />

Cairns Industries was established six years ago in the 780-strong<br />

population of Borroloola with four staff and a focus on constructing<br />

government housing. Now the business employs 28 people, all living<br />

in Borroloola, and supplies excavating and earthmoving machinery,<br />

mobile concrete batching and camp construction for several mines<br />

and government agencies across the Territory.<br />

Other local suppliers winning major contracts include two Darwinbased<br />

businesses; EC&E which won the $1.5 million primary<br />

fabrication contract; and Integrated Switchgear and Systems which<br />

won the $1.2 million switchboard, variable speed drive, motor control<br />

centre and switchroom contracts.<br />

EC&E has been supplying manufactured, fabricated and assembled<br />

plant and equipment to MRM since 1993 with an estimated 50% of<br />

the mine’s original infrastructure a result of their work.<br />

For the heavy medium plant, they will be trucking in pre-assembled<br />

modules close to 1,000km from Darwin.<br />

The new facility was chosen over an upgrade to the existing<br />

concentrator due to the heavy medium plant’s better construction<br />

time, lower electricity requirements and improved metallurgical<br />

performance.<br />

On completion, the plant will improve the quality of zinc-lead grade<br />

passed to the mill, improving operating costs.<br />

Construction of the heavy medium plant will continue until February<br />

2012 with commissioning commencing in March 2012.<br />

6<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19


Code of Conduct<br />

updated<br />

Xstrata plc has released an updated Code of Conduct<br />

which applies to all permanent and temporary<br />

employees, directors and officers of every Xstrata<br />

managed operation.<br />

Borroloola local, Richard Baker, received his license and secured employment as a<br />

commercial helicopter pilot at Airborne Solutions with funding help from an MRM<br />

Community Benefits Trust grant.<br />

MRM a finalist in national<br />

mining awards<br />

MRM was a finalist in the community relations<br />

category of the prestigious national Australian<br />

<strong>Mining</strong> Prospect Awards in September for its<br />

work in achieving positive change in the community<br />

of Borroloola.<br />

Of chief interest to the judges was MRM’s success in increasing Indigenous<br />

employment both directly through the mine and indirectly through the work<br />

of the MRM Community Benefits Trust.<br />

MRM General Manager Ettienne Moller said while MRM missed out on<br />

winning the top award, to reach the finals was a significant achievement<br />

given the competition.<br />

“Our business at MRM is mining zinc – pure and simple. We have a<br />

responsibility to mine ethically and with the highest regard to safety,<br />

our people, our shareholders and our environment. What sets us apart,<br />

I believe, is the difference we are making in the community of Borroloola,”<br />

Ettienne said.<br />

“We’re proud the resources industry has recognised those achievements<br />

and we were pleased to celebrate the night with our guests Tony Jack and<br />

Graham Friday.”<br />

MRM’s Indigenous employment strategy and the establishment of the<br />

MRM Community Benefits Trust have prioritised employment, training and<br />

enterprise development initiatives both through MRM’s mining operations<br />

and in the wider Borroloola economy. They have fulfilled:<br />

• MRM’s target to achieve 20% workforce participation by Indigenous people<br />

at the mine within a total workforce of 282 people representing an increase<br />

of around 35 Indigenous employees to 60 in permanent full-time roles.<br />

• A commitment to support local enterprise, employment and training<br />

initiatives within the community which has generated employment for an<br />

additional estimated 25 local people, work experience for 38 school students<br />

and training positions within the school’s new and expanding Vocational<br />

Education and Training facilities.<br />

• Planning for the establishment of a Borroloola-based business hub to<br />

support the development of sustainable enterprises within the community<br />

and create employment opportunities.<br />

Xstrata Zinc won the Minerals Processing Plant of the Year category for its<br />

Mount Isa operations. The award recognised the increase in the Mount Isa<br />

throughput from 3.5 million tonnes in 2003 to 8.6 million tonnes in 2010<br />

and the results of investments in training, innovation, workplace conditions<br />

and technology to achieve significant improvements in safety, productivity,<br />

cost efficiency and environmental performance.<br />

It also applies to any person who is engaged as a<br />

contractor, consultant, agent or advisor to the business.<br />

“It is important for us all to be<br />

aware of the Code of Conduct<br />

and where it has relevance<br />

to our roles,” MRM General<br />

Manager Ettienne Moller said.<br />

The Code of Conduct sets expectations for all<br />

employees. Concerns about safety practices or<br />

health issues, bullying, fraud, unfair treatment,<br />

theft, dishonest business activities, conflicts of<br />

interest, misappropriation of company resources,<br />

bribery or any other unethical behaviour in the<br />

workplace should be reported to an immediate<br />

supervisor or manager, or with a more senior officer<br />

or executive at the operation.<br />

In instances where it is not possible to speak to an<br />

Xstrata manager, a toll-free Ethics Line is available<br />

on 1800 987 310 and is independently run by an<br />

external service provider. People can choose to<br />

report anonymously.<br />

The Code of Conduct is available on the Xstrata<br />

and MRM intranets.<br />

Code of Conduct<br />

Business Principles into Practice<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19<br />

7


A Rainbow Bee Eater recorded in the recent<br />

monitoring survey.<br />

A male Purple Crowned Fairy-Wren spotted during<br />

the recent survey.<br />

Using ‘irrigation sleds’ to water tube-stock allows<br />

planting in the dry season and gives rehabilitation<br />

the best possible start.<br />

Environment update<br />

MRM is gearing up to plant approximately 17,000 tube-stock<br />

along the <strong>McArthur</strong> <strong>River</strong> and Barney Creek channels in advance<br />

of the upcoming wet season.<br />

Since 2008, direct seeding of the <strong>McArthur</strong> <strong>River</strong> channel has<br />

occurred twice and approximately 40,000 tube-stock planted.<br />

Together with this year's planned planting, this far exceeds the<br />

35,000 tube-stock originally committed as part of the project’s<br />

Public Environmental Report for the open pit project.<br />

In the Barney Creek area alone, MRM has planted approximately<br />

27,000 trees since 2007, with some plants now up to 11 metres in<br />

height after having the benefit of two more growing years than the<br />

<strong>McArthur</strong> <strong>River</strong> rehabilitation.<br />

Designed by the mining infrastructure team, an irrigation sled<br />

(pictured) will be used to give rehabilitation the best possible start.<br />

Return of the birds<br />

For the first time, a number of forest and woodland birds were<br />

recorded in the regenerating vegetation and grass cover.<br />

As part of regular riparian bird monitoring, external consultants<br />

Ecological Management Services tag species and record data on<br />

their abundance.<br />

Health, Safety, Environment and Community Manager Gary Taylor<br />

said the return of the birds, particularly in the Barney Creek channel<br />

area, was a significant development.<br />

“Recording these birds highlights the importance of intensive<br />

management in the early stages of the rehabilitation program.<br />

It means all the hard work we’ve been doing is slowly but surely<br />

paying off,” Gary said.<br />

The Barney Creek channel, where re-plantings have been<br />

established the longest, is also supporting increasing numbers of<br />

woodland bird species such as the Bower Bird. Importantly, one<br />

key riparian bird indicator species, the Purple Crowned Fairy-Wren,<br />

was observed using the area for short periods of time during May<br />

of this year.<br />

The wren was noted within the cattle exclusion fence between the<br />

diversion inlet and the southern bund, particularly in higher bank<br />

riparian woodland habitat. This suggests that while cattle are still<br />

present in this area, the fencing undertaken by MRM is reducing<br />

the overall impact of grazing in the riparian woodland, and may<br />

also limit damage to plants in rehabilitation areas.<br />

Vegetation monitoring<br />

During August 2011, Eco Science conducted a terrestrial flora survey<br />

as an update to the previously comprehensive survey conducted in<br />

2003. The aim of the study was to assess the environmental values<br />

of terrestrial flora communities within the project area by reviewing<br />

literature and species of conservation significance, verifying field<br />

data from existing vegetation mapping and noting any important<br />

ecological changes that might be expected with the proposed Phase<br />

3 Development, with a particular interest on the presence or absence<br />

of threatened species or habitats.<br />

The survey will become part of the submission to the NT Government<br />

within the Environmental <strong>Impact</strong> Statement for the proposed Phase 3<br />

Development.<br />

Fish surveys<br />

Sampling for fish and other aquatic fauna was undertaken in May<br />

and June in 2011 from 47 separate sample sites.<br />

A total of 3,180 individual fish were counted from waters of<br />

the <strong>McArthur</strong> <strong>River</strong> during the current study from 34 different<br />

species. Three species of crustacean and three species of aquatic<br />

reptile were also captured and released. In total, four Freshwater<br />

Sawfish were recorded from above and below the mine site with a<br />

separate one sighted within the channel during the study. Since the<br />

commencement of fish surveys in 2006, a total of 28 records have<br />

been documented for the Freshwater Sawfish.<br />

The large woody debris placed in the channel during 2010 was<br />

shown to be a successful strategy in improving the diversity and<br />

abundance of fish species.<br />

Fish counts have improved since 2009 and 2010 to move closer to<br />

the levels recorded in the river prior to 2008.<br />

8<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19


Topsy Green and Isa McDinny from the Yanyuwa Singers, Mr Tom Calma (previous Aboriginal <strong>Social</strong> Justice Commissioner<br />

for the Human Rights and Equal Opportunity Commission), actors Jack Thompson and Luke Carrol at the Deadly Awards.<br />

Photo courtesy of Ben Symonds and Vibe Australia.<br />

MRM Community Benefits Trust<br />

Caring for the rich fishing and turtle nesting grounds of the Gulf Region are the<br />

focus for the latest round of grants from the MRM Community Benefit Trust.<br />

Barni-Wardimantha Awara<br />

Following the recent declaration of all<br />

country under Yanyuwa tenure as an<br />

Indigenous Protected Area, a $58,500<br />

Trust grant has been made for the<br />

Barni-Wardimantha Awara project<br />

(translation: Don’t spoil the country)<br />

to help the Yanyuwa people action<br />

their Plan of Management.<br />

One of the priorities in the Plan was the<br />

need to develop small scale economic<br />

enterprises to provide an income stream<br />

and employment opportunities around<br />

environmental management activities.<br />

In conjunction with Traditional owners,<br />

the Sea Rangers and community members,<br />

the Plan includes trialling an ecotourism<br />

turtle camp on Mabaayny (West Island),<br />

preparing submissions for funding<br />

proposals and developing partnerships<br />

for infrastructure such as Black Rock<br />

Landing. It also includes strategic land<br />

and sea management planning and the<br />

development of a business plan.<br />

The Barni-Wardimantha Awara project<br />

forms the first stage of a program that is<br />

expected to run for up to three years.<br />

Extension of fish monitoring<br />

project by King Ash Bay<br />

Fishing Club<br />

The Trust has agreed to ongoing funding<br />

of the Barramundi Monitoring project.<br />

This important survey has been supported<br />

by the Trust since 2009, with the approval<br />

of a further $116,600 grant in August<br />

this year.<br />

The study involves collecting detailed<br />

information on fish stocks and the impact<br />

of recreational fishing in a broad region<br />

covering the <strong>McArthur</strong> <strong>River</strong>, downstream<br />

of Borroloola, the <strong>McArthur</strong> <strong>River</strong> delta,<br />

coastal streams from Bing Bong to the<br />

Wearyan <strong>River</strong> and the Sir Edward Pellew<br />

Islands.<br />

King Ash Bay has become a magnet for<br />

interstate visitors determined to get off the<br />

beaten track, so they too will be included in<br />

the count.<br />

In a bid to promote better management<br />

of precious fisheries, Golden Snapper<br />

stocks will also be monitored, supporting<br />

the work of NT Fisheries and the Amateur<br />

Fishermen’s Association of the Northern<br />

Territory.<br />

Song People Sessions<br />

a success<br />

The Trust Board was delighted to hear of<br />

the success of the Barkly Regional Arts<br />

project – Song People Sessions, a recipient<br />

of a $73,900 Trust grant in June 2011.<br />

The funding allowed the team to develop<br />

and record traditional songs and stories<br />

on a music CD. Involving Borroloola’s<br />

own ‘Songbird’ the nationally recognised<br />

Yanyuwa woman Shellie Morris, the project<br />

captured the Gulf Region’s traditional<br />

songs of the Gurdanji, Garawa, Mara and<br />

Yanyuwa people.<br />

The singers wowed audiences in Darwin<br />

at the NT Indigenous Music Awards in<br />

August prompting an invitation to perform<br />

at the Deadly Awards, (which recognises<br />

excellence in music, sport, entertainment<br />

and community service), at the Sydney<br />

Opera House in September.<br />

The fusion of contemporary music with<br />

traditional sounds has inspired Brazil’s<br />

Gilberto Gil to invite Shellie Morris and<br />

the Borroloola women singers on a<br />

10-concert tour of Europe next year to<br />

celebrate Indigenous music of the southern<br />

hemisphere.<br />

The Song People Sessions CD will be<br />

launched in Borroloola soon – we’ll keep<br />

you posted!<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19<br />

9


Mill report<br />

Production Supervisor Brenton Borlace hosing down the facility.<br />

The mill team has been achieving record-breaking production figures this quarter,<br />

alongside the dual priority of constructing the new $46 million heavy medium plant.<br />

The positive production figures follow the release of Xstrata’s Half-<br />

Yearly Report for 2011, showing MRM’s ore mining and milling<br />

activities have increased by 5% compared with the first half of<br />

2010, resulting in an increase of 3% in zinc metal in concentrate,<br />

despite difficulties caused by wet weather.<br />

The mill recorded its highest ever production results in July 2011,<br />

keeping the mill at capacity with 222,669 tonnes processed.<br />

Metallurgy Manager Sam Strohmayr said the unprecedented activity<br />

called for an ever-increasing focus on safety.<br />

“The messages from our safety team is getting through to our<br />

whole workforce. We haven’t recorded any incidents for Lost Time<br />

Injury (LTI) for 205 days straight,” Sam said.<br />

“We’re working hard on maintaining our safe work practices.”<br />

Priority work completed and underway in the lead up to the wet<br />

season includes:<br />

• fire protection upgrades are close to completion around the<br />

mill area<br />

• corrosion control is continuing within the plant<br />

• the flotation gland water tank replacement is complete<br />

• concrete works at the M10,000 area and concentrate<br />

pad are complete<br />

• the SAG mill to M10,000 walkway is complete<br />

• the Vertimill discharge line upgrades are complete<br />

• process water line upgrades are continuing.<br />

During the third quarter, some of the highest ever monthly<br />

concentrate production totals were seen.<br />

MRM’s historical records show that July, August and<br />

September 2011 are now in the top four months ever<br />

recorded for concentrate production.<br />

Monthly concentrate production<br />

Place Month Concentrate in tonnes<br />

1st Dec-09 39,224<br />

2nd Sep-11 38,847<br />

3rd Jul-11 38,784<br />

4th Aug-11 37,644<br />

The Vertimill discharge line upgrade has already made a significant<br />

impact on keeping the grinding circuit stable and increasing plant<br />

performance.<br />

“The Mill Team is performing solidly and has achieved outstanding<br />

results during the past few months. This is all thanks to the team<br />

working hard together,” Sam said.<br />

Mill Operator Reinaldo Da Cunha checking metallurgical shift samples.<br />

10<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19


New Starters<br />

Tyson Lavender<br />

Environmental Officer<br />

Glen Castillon<br />

Indigenous Employment<br />

Coordinator<br />

The environment has always fascinated Tyson, he says his father<br />

worked as a Ranger and that’s probably the reason why he entered<br />

the same field. He studied at the University of Queensland and later<br />

at the University of New South Wales.<br />

He says he’s looking forward to the mix of indoor and outdoor work<br />

here at MRM.<br />

What experience and skills do you bring to MRM?<br />

I am an Environmental Engineer with a water engineering and civil<br />

urban development background.<br />

What would you like to achieve in your role during your<br />

time here?<br />

I would like to gain a broad experience in environmental<br />

management of mine sites.<br />

If you found $100 what would you do with it?<br />

Go spend it in an Asian restaurant – I really like Asian food!<br />

What are you currently reading?<br />

Fyodor Dostoevsky’s The Idiot.<br />

Glen is a proud Darwin born Territorian. He brings a wealth of<br />

experience to MRM after working for 36 years in government and<br />

non-government roles and has a First Class Honours degree in<br />

Indigenous Development and Management from Curtain University.<br />

What experience or skills do you bring to MRM?<br />

I have spent many years implementing government policies with<br />

community people.<br />

At MRM, I would like to see an increase in the number of<br />

Indigenous people, including locals working at the mine. To see<br />

them move from traineeships to full-time employment through all<br />

sectors of the mine’s operations.<br />

What brought you to MRM?<br />

I joined to gain new skills and a new focus on working with<br />

Indigenous people outside of the confines of government.<br />

What is something you enjoy doing on the weekend?<br />

When I’m at home I enjoy spending time with my family, playing<br />

golf, I love fishing and enjoy painting on canvas, not walls!<br />

If you found $100, how would you spend it?<br />

I’d try to find who owned it or donate it to charity<br />

What are you currently reading?<br />

One of those self help books, 20 Must-Ask Questions for Every<br />

Property Investor by Margaret Lomas. I’ll let you know if it works...<br />

MRM congratulates NT Trainee of the Year<br />

This year’s winner of the MRM-sponsored<br />

NT Trainee of the Year was Melissa Agnew<br />

from Darwin.<br />

The NT Training Awards are the Department of<br />

Education and Training's (DET) annual premier<br />

event recognising training excellence and<br />

achievements by Territory businesses, training<br />

organisations, apprentices, trainees, trainers<br />

and students.<br />

The awards are an official recognition of<br />

excellence and achievements in gaining the<br />

highest standards of knowledge and skills,<br />

in contributing to high standards of training,<br />

and for personal achievement in the vocational<br />

education and training (VET) sector.<br />

Melissa completed her year 12 Certificate before<br />

taking up a school based apprenticeship at<br />

Crocodylus Park, a large animal-based tourist<br />

attraction on the outskirts of Darwin. Melissa<br />

said she enjoyed the challenge of working with<br />

wild animals and had gained an insight into the<br />

importance of the role zoos and wildlife play in<br />

public education about habitats and ongoing<br />

conservation. She has recently completed a<br />

Certificate II in Animal Studies and has recently<br />

been promoted to a leadership role supervising<br />

young volunteers at Crocodylus Park. Melissa is<br />

currently undertaking her Cert III in Animal<br />

Studies while considering whether she will<br />

pursue a university degree.<br />

MRM congratulates Melissa for her outstanding<br />

work in wild animal studies, her commitment<br />

to learning more about our environment and the<br />

importance of conservation values in a unique<br />

work place.<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19<br />

11


Safety report<br />

The continuing emphasis on safety on<br />

site by all employees, contractors and<br />

visitors is producing standout results.<br />

At the end of August 2011, MRM’s safety performance continued to<br />

improve with the Total Recordable Frequency Rate (all injuries except<br />

first-aid treatments) for a 12-month rolling average, declining to 4.9<br />

from 10.5 in August 2010.<br />

The 12-month rolling Lost Time Injury (LTI) Frequency Rate (which<br />

measures the number of LTIs per million hours worked) decreased<br />

down from 2 to zero after an LTI-free year.<br />

Health, Safety, Environment and Community Manager Gary Taylor<br />

congratulated the workforce.<br />

“The importance of safety at MRM is everyone’s business and will remain<br />

paramount as we construct the heavy medium plant,” Gary said.<br />

“I’m asking everyone to keep working safely on site so we can maintain<br />

our safety record and be an exemplar Xstrata site.”<br />

Monitoring results<br />

Ongoing dust monitoring is being completed across site for respirable<br />

dust, inhalable dust silica, lead, arsenic and cadmium dust.<br />

The main findings show that lead dust in the mill filter shed continues<br />

to be high and further monitoring is required. Additional controls such<br />

as the installation of a new filter should have a positive effect on these<br />

results. Personnel must continue to wear personal protection equipment<br />

at all times in this area, and further monitoring will continue.<br />

During mid September 2011, MRM completed a baseline Whole Body<br />

Vibration (WBV) Survey.<br />

Operators, drivers and passengers of machines and vehicles in mining<br />

workplaces can be exposed to harmful levels of WBV. Reducing exposure<br />

reduces the risk of musculoskeletal disorders such as lower back pain.<br />

The survey measured WBV exposure in a sample of surface mobile<br />

equipment from the site, with a major emphasis on mining equipment.<br />

There was also an assessment of the flotation decks in the mill, and<br />

other operational areas within Metallurgy.<br />

Initial raw data results indicated that the mill was in relatively good<br />

condition and data for mobile plant shows WBV appears related to<br />

the methods or modes of use – most notably the terrain covered during<br />

measurement. There was no clear pattern found that the vibration which<br />

the operator is exposed to is being increased from the engine to the seat.<br />

Now hear this<br />

Wearing the right gear is the main safety message coming from a<br />

recently completed occupational noise survey conducted by an external<br />

consultant across the mine site. Gary said Noise Induced Hearing Loss<br />

was the most common and preventable occupational injury.<br />

“By performing simple prevention techniques, the risk of developing<br />

hearing loss can be dramatically reduced,” Gary said.<br />

“Our workers participate in a hearing conservation program, which<br />

consists of an assessment of hearing-related risks within the workplace,<br />

hearing Lost Time protection, Injury Frequency training, Rate and ongoing health monitoring.”<br />

Gary said the message needed to be sent home too.<br />

3.0<br />

“Simple things such as wearing the appropriate protection when<br />

2.5<br />

operating lawn mowers, brush cutters, and power tools in the home<br />

can<br />

2.0make a real difference to a person’s auditory health,” he said.<br />

A noise<br />

1.5<br />

control plan is being developed for MRM which includes training<br />

for 1.0 workers in the correct selection and use of hearing protection, and a<br />

schedule is now in place for personal noise dosimetry (a small device or<br />

0.5<br />

instrument used to measure noise).<br />

FREQUENCY<br />

Mill Operator Jason Eecen protecting his ears at work.<br />

0.0<br />

Aug 10 Sep 10 Oct 10 Nov 10 Dec 10<br />

Jan 11<br />

Feb 11 Mar 11 Apr 11 May 11 Jun 11<br />

Jul 11<br />

Aug 11<br />

LTIFR<br />

Lost Time Injury Frequency Rate<br />

Total Recordable Injury Frequency Rate<br />

3.0<br />

12<br />

2.5<br />

10<br />

FREQUENCY<br />

2.0<br />

1.5<br />

1.0<br />

FREQUENCY<br />

8<br />

6<br />

4<br />

0.5<br />

2<br />

0.0<br />

Sep 10 Oct 10 Nov 10 Dec Aug 10 10Jan Sep 1110Feb Oct 1110Mar Nov 1110Apr Dec 1110May Jan 11 11 Jun Feb 11 11 Jul Mar 11 11Aug Apr 11 11 May 11 Jun 11<br />

Jul 11<br />

Aug 11<br />

0<br />

Aug 10 Sep 10 Oct 10 Nov 10 Dec 10<br />

Jan 11<br />

Feb 11 Mar 11 Apr 11 May 11 Jun 11<br />

Jul 11<br />

Aug 11<br />

TRIFR<br />

LTIFR<br />

Total Recordable Injury Frequency Rate<br />

TRIFR<br />

12<br />

12<br />

McARTHUR RIVER MINING NOVEMBER 2011 – EDITION 19<br />

10


Appendix 5<br />

Appendix 5: Stakeholder Analysis<br />

Engagement<br />

level<br />

Stakeholder group<br />

Stakeholders consulted<br />

Manage closely Communities –<br />

Yanyuwa<br />

Communities –<br />

Gurdanji<br />

Traditional Owners<br />

• Samuel Evans<br />

• Ross Friday<br />

• Marlene Karkadoo<br />

• Wyilo McKinnon<br />

• Chloe Mulholand<br />

• Dinah Norman<br />

• Leonard Norman<br />

• Mavis Timothy<br />

• Adrianne Friday<br />

• Amy Friday<br />

Community members<br />

• Anthony Johnston<br />

• Joanne Miller<br />

• Maria Pyro<br />

Traditional Owners<br />

• Billy Coolibah<br />

• Johnny Davey<br />

• Harry Lansen<br />

• Timothy Lansen<br />

• Peggy Mawson<br />

• May Raggett<br />

• Ronnie Raggett<br />

• Katy Baker<br />

Community members<br />

• Jonex Finlay<br />

• Jason Green<br />

• Deon Lansen<br />

• Judy Lansen<br />

• Robert O’Keefe Jr<br />

• Hayden Ward<br />

Communities – Mara Traditional Owners<br />

• Rhoda Hammer


Appendix 5<br />

Engagement<br />

level<br />

Stakeholder group<br />

Communities -<br />

Garawa<br />

Community groups<br />

Stakeholders consulted<br />

• Violet Hammer<br />

• Jacob Riley<br />

• Phillip Riley<br />

• Norma Timothy<br />

Community members<br />

• Stewart Dirdi<br />

• Clem Goodman<br />

• Roslyn Hammer<br />

• Bruce Hansen<br />

• Katrana McKinnon<br />

• Vera McKinnon<br />

• Shauna Mumbin<br />

• Shaunette Mumbin<br />

• Lynette Simons<br />

Traditional Owners<br />

• Thelma (Junior) Dixon<br />

• Vera Dixon<br />

• Jack Green<br />

• Marjorie Keighran<br />

• Freddy Rory<br />

• Shirley Simons<br />

• Maureen Timothy<br />

Community members<br />

• Leah Bob<br />

• Aggie Charlie<br />

• Carol Charlie<br />

• Colleen Charlie<br />

• Roderick Charlie<br />

• Topsy Green<br />

• David Marshall<br />

• Jocelyn Mawson<br />

• Jimmy Morrison<br />

• Teresa Rory<br />

MRM Community Reference Group<br />

• Syd Rusca<br />

• Stan Allen


Appendix 5<br />

Engagement<br />

level<br />

Stakeholder group<br />

Stakeholders consulted<br />

• David Harvey<br />

Indigenous / local<br />

services and Non<br />

Government<br />

Organisations<br />

(note other members have been named elsewhere in this list<br />

including from the Indigenous/local services group below.)<br />

Mabunji Aboriginal Resource Corporation<br />

• Alison Doyle<br />

• Robert Arthur<br />

• Allan Charlie<br />

• Selma Hoosan<br />

• Amanda Johnson<br />

• Johnny Johnston<br />

• Desmond Lansen<br />

• Annie Roberts<br />

• Timothy Simons<br />

• Jodie Stacey<br />

• Lavina Woodroffe<br />

MAWA<br />

• Brian Kimmings<br />

• Keith Rory<br />

Mungoorbada Aboriginal Corporation<br />

• Bill South<br />

Li-Anthawirriyarra Sea Rangers<br />

• Chris Francis<br />

• Graham Friday<br />

• Stephen Johnson<br />

• Damien Pracy<br />

Environment Centre Northern Territory<br />

• Stuart Blanch<br />

Borroloola Women’s Shelter & Safe house<br />

• Sophia Fairhead<br />

• Lizzy Hogan<br />

• Valerie O’Keefe<br />

• Samantha Pluto<br />

Northern Land Council<br />

• Daniel Mulholland<br />

• Donald Shadforth


Appendix 5<br />

Engagement<br />

level<br />

Keep satisfied<br />

Stakeholder group<br />

Local businesses,<br />

organisations and<br />

suppliers<br />

Stakeholders consulted<br />

Australian Aboriginal Protection Authority<br />

• Stefan Jurkijevic<br />

• Walter Zukowksi<br />

Waralungku Arts Centre<br />

• Miriam Charlie<br />

• Kathy Jupiter<br />

Borroloola Hotel<br />

• Toya Davis<br />

• Andrew Davis<br />

Savannah Way Motel<br />

• Trish Elmy<br />

• Sue Morgan<br />

• Charlie Radovic<br />

Gulf Mini Mart<br />

• Don Garner<br />

TJ’s One Stop<br />

• Megan Sauer<br />

Power Projects<br />

• Ryan Walker<br />

Borroloola Amateur Race Club<br />

• Rona Robertson<br />

Cairns Industries<br />

• Allen Cairns<br />

• Kym Cairns<br />

Stations<br />

• Spring Creek Station<br />

• Balbarini Station<br />

• Mallapunyah Station<br />

• Seven Emus Station<br />

Heartbreak Hotel<br />

• Kerry Ralph<br />

Industry Services Association<br />

• Emma Branigan<br />

• Sarah Coombes


Appendix 5<br />

Engagement<br />

level<br />

Keep informed<br />

Stakeholder group<br />

Surrounding<br />

communities<br />

Roper Gulf Shire<br />

Council<br />

NT Government and<br />

agencies<br />

Stakeholders consulted<br />

• Peter Rheinberger<br />

King Ash Bay community<br />

• Fay Campbell<br />

• John Dickson<br />

• Dennis Dixon<br />

• Keith Hallett<br />

• Mick Hong<br />

• Barry Stillman<br />

• Barry Wood<br />

Robinson <strong>River</strong> community<br />

• Bill Dixon<br />

• Dicky Dixon<br />

• Ronny Whitehead<br />

• Tony Jack, Mayor<br />

• Michael Berto, CEO<br />

• Stephen Anderson, Councillor<br />

• Sharon Hillen, Manager Governance and Corporate<br />

Planning<br />

• Thomas Michel, Senior Officer<br />

• Neil Pickett, Shire Services manager<br />

• Val Sieb, Library Manager<br />

• Nathan Willes, Youth Diversion Coordinator<br />

NT Government<br />

• Department of Natural Resources, Environment, the Arts<br />

and Sport<br />

• Department of Land and Planning, Road Network<br />

Division<br />

• Department of Housing, Local Government and Regional<br />

Services<br />

• Remote Engagement Officer<br />

• NT Worksafe<br />

• Land Development Corporation<br />

Borroloola Health Clinic<br />

• CJ Byrne<br />

• Marie Forbies<br />

• Andrew Geale<br />

• Wendy Kerr<br />

• Sue McMullen (Menzies School of Health)


Appendix 5<br />

Engagement<br />

level<br />

Stakeholder group<br />

Australian<br />

Government<br />

Employees<br />

Stakeholders consulted<br />

• Debra Moloney<br />

• Anthony O’Neill<br />

• Asman Rory<br />

• Kathy Ryan<br />

• Debra Young<br />

Borroloola Police<br />

• David D’Antoine<br />

• Gert Johannson<br />

• Melissa Sanderson<br />

• Ian Young<br />

Borroloola School<br />

• Graeme Matthews, Principal<br />

Centrelink<br />

• Peter England<br />

• Jodie Evans<br />

• Agnes Keighran<br />

Parks and Wildlife Borroloola<br />

• Michelle Foaet<br />

• Ben Senge<br />

Department of Resources, Energy & Tourism<br />

• John Eldred, Resources Division<br />

• Jill Grant, Resources Division<br />

• Mark Hough<br />

• Susan Penfold, Minerals and Energy<br />

• Frances Perrett<br />

• Chris Stamford, Resources Division<br />

Department of Families, Housing, Community Services and<br />

Indigenous Affairs<br />

• Robert Sitlington<br />

All<br />

Monitor Pastoralists • Megan Beach, Spring Creek Station<br />

• Bill Darcy, Balbarini Station<br />

• Jan Darcy, Mallapunyah Station<br />

• David Milroy, Kiana Station<br />

• Kerry Ralph, Heartbreak


Appendix 5<br />

Engagement<br />

level<br />

Stakeholder group<br />

Stakeholders consulted<br />

• Frank Shadforth, Seven Emus Station<br />

Darwin Business<br />

organisations<br />

Minerals Council of Australia – NT Division<br />

• Peter Stewart<br />

Tourists • Bill Ashworth<br />

• Yvonne Ashworth<br />

• Desirae Grainer<br />

• Helen Johnston<br />

• Robert Johnston<br />

• George Kidner<br />

• Lucie Kidner<br />

• Frances Schultz<br />

• Malcolm Schultz


Appendix 2<br />

Appendix 2 — MRM Community Benefits Trust — 20 Year Plan<br />

Vision: where the region wants to be by 2028: TO BE A VIBRANT, THRIVING, HEALTHY REGION<br />

Focus areas: what the Trust needs to do to<br />

contribute to this vision<br />

EDUCATION AND<br />

JOB CREATION<br />

SOCIAL AND COMMUNITY DEVELOPMENT HEALTH ENVIRONMENT CULTURE AND ART<br />

Baseline: where we stand in 2008<br />

• Literacy and numeracy: scores of below 30%<br />

across three age groups tested in national<br />

reading, writing and numeracy tests<br />

• Number of students graduating from Grade<br />

10 and 12: Low<br />

• School absenteeism: High (50% - 75%)<br />

• Unemployment rate: 38%<br />

• Average weekly gross income: Low<br />

• Main employer: CDEP (34% of jobs)<br />

• Average cost of living: High<br />

• Overcrowding in local homes: High<br />

• Indigenous-owned homes: 0<br />

• Formal youth activities: Minimal<br />

• Sense of community and town pride:<br />

Minimal<br />

• Law - offences against the person:<br />

approximately six times higher than the NT<br />

average<br />

• Law - offences against property: 28%<br />

higher than the NT average<br />

• Access to affordable, healthy food: Low<br />

• Drug and alcohol abuse: High<br />

• Chronic diseases: rheumatic fever,<br />

hearing and eye problems, skin diseases<br />

• Widespread cattle grazing on large<br />

pastoral properties<br />

• Growing recreational fishing industry:<br />

approximately 15,000 visitors in 2007<br />

• National Parks/Reserves:<br />

- Barranyi ( North Island) National Park<br />

- Caranbirini Nature Reserve<br />

- Limmen Bight National Park<br />

• Traditional hunting and gathering by<br />

language groups<br />

• Generational understanding of Indigenous<br />

culture and traditions: Slowly being lost<br />

due to societal issues<br />

• Current cultural features:<br />

- Lost City: a place steeped in culture<br />

and history, with sandstone<br />

formations, numerous rivers and<br />

wetlands<br />

- Borroloola History and Museum<br />

- Waralungku Art Centre Borroloola<br />

Priority actions - 2008 to 2013: what we need<br />

to do to make real progress by 2013<br />

2008/09 priorities<br />

Support initiatives that help provide:<br />

2008/09 priorities<br />

Support initiatives that help provide:<br />

2008/09 priorities<br />

Support initiatives that help provide:<br />

2008/09 priorities<br />

Support initiatives that help provide:<br />

2008/09 priorities<br />

Support initiatives that help provide:<br />

“Establishing the foundations”<br />

• An adult education centre for the region<br />

offering suitable training programs to assist<br />

future industry/business opportunities such<br />

as:<br />

- Upskilling people in ‘hard’ and ‘soft’<br />

trades<br />

- Business establishment and<br />

management<br />

- Transitioning from work to school<br />

- Drafting tender submissions<br />

- Cross cultural awareness (children to<br />

adults)<br />

• Opportunities/incentives to re-engage youth<br />

in education<br />

• An Indigenous-based mentoring program<br />

catering for all — school, pre-vocational,<br />

employment<br />

• School-based work experience programs<br />

• School-based apprenticeship programs<br />

• Tertiary scholarships and traineeships<br />

• Support for the working WELL program<br />

• A work-ready program focusing on:<br />

- Work ethic/self esteem<br />

- Money management<br />

- Induction and OH&S<br />

• Sustainable housing for the region<br />

• Sustainable youth activities and support<br />

programs/facilities such as:<br />

- Support for local sports in the region<br />

- Community Youth Centre/Hall<br />

- Boarding facilities for travelling<br />

sporting teams<br />

• Relevant family support programs such as:<br />

- Home routine<br />

- Behavioural support<br />

- Financial management<br />

- Parenting and child care<br />

• Opportunities to build a sense of<br />

community spirit in the region such as:<br />

- Establishing a place to meet and a<br />

social outlet that isn’t linked to drugs<br />

and alcohol ie a community<br />

recreational facility such as the<br />

Community Centre concept or a<br />

meeting place/village square<br />

- Developing a community newsletter<br />

- Establishing a town social club to<br />

advertise community events<br />

(Borroloola Cyclones Soccer Club<br />

games, movies in the community<br />

centre, town barbecues etc)<br />

• High priority health programs such as:<br />

- Nutrition<br />

- Breakfast in schools<br />

- Hygiene<br />

- School-based drug and alcohol<br />

programs<br />

• High priority health facilities such as:<br />

- A sobering-up shelter<br />

- Night patrol<br />

- 2 permanent, full-time GPs at the<br />

Borroloola Health Clinic<br />

- 6 additional treatment rooms for the<br />

Borroloola Health Clinic<br />

- Specialist medical support such as a<br />

dentist, optometrist, gynaecologist,<br />

cardiologist, podiatrist, audiologist<br />

- Rehabilitation Centre<br />

- Helicopter-base at Borroloola<br />

• Suitable, high priority aged care<br />

programs/initiatives such as meals-onwheels<br />

and transport<br />

• Affordable, nutritious food for the region<br />

• Self-sustainable environmental projects or<br />

eco-tourism ventures that deliver real<br />

community benefits<br />

• Also see the ‘Education and job creation’<br />

section for training support<br />

• Self-sustainable art and culture-based<br />

projects or Indigenous-tourism ventures<br />

that deliver real community benefits<br />

• Also see the ‘Education and job creation’<br />

section for training support<br />

Sources: NT Government Department of Business, Economic and Regional Development (DBERD) research presentation to the Trust board titled: ‘Borroloola Community Profile’, Community consultation undertaken by MRM, the Trust Project Officer and Rowland Pty Ltd on behalf of the Trust from March to May 2008


Appendix 2<br />

Vision: where the region wants to be by 2028: TO BE A VIBRANT, THRIVING, HEALTHY REGION<br />

Focus areas: what the Trust needs to do to<br />

contribute to this vision<br />

EDUCATION AND<br />

JOB CREATION<br />

SOCIAL AND COMMUNITY DEVELOPMENT HEALTH ENVIRONMENT CULTURE AND ART<br />

2009 to 2013<br />

2009 to 2013<br />

2009 to 2013<br />

2009 to 2013<br />

2009 to 2013<br />

Support initiatives that help to provide:<br />

Support initiatives that provide:<br />

Support initiatives that provide:<br />

Support initiatives that provide:<br />

Support initiatives that provide:<br />

Targets: in 2013 how will we know we are on<br />

the way to achieving our vision<br />

• See 2008/09 priorities listed above<br />

• See 2008/09 priorities listed above<br />

• Sustainable locally-owned businesses such as:<br />

- Eco-tourism<br />

- Aquaculture/fishing<br />

- Fully Indigenous operated ‘Aburri’<br />

- Steel fabrication business<br />

- A service to undertake road<br />

upgrades/town maintenance<br />

• Delivered on annual priorities<br />

• Committed the Trust budget in full — year-on-year<br />

• Demonstrated results (provided by Trust recipients)<br />

• Reviewed and refined the Trust’s priorities annually<br />

• Improvements against baseline<br />

• See 2008/09 priorities listed above<br />

• See 2008/09 priorities listed above<br />

• High-priority training opportunities for<br />

outstations/ homesteads<br />

• Training needed to support sustainable<br />

and environmentally-friendly ecobusinesses<br />

• Sustainable eco-friendly businesses such as<br />

a Barramundi Hatchery<br />

• See 2008/09 priorities listed above<br />

• High priority training programs needed to<br />

support the art and culture industry<br />

• Support for the sustainable growth of<br />

existing art and culture organisations<br />

Priority actions post 2013: what we need to<br />

put in place post-2013 (or earlier if funding is<br />

available)<br />

Targets: how we will know we have achieved<br />

our 20-year vision<br />

Support initiatives that help provide:<br />

• Sustainable locally-owned businesses such as:<br />

- Eco-tourism<br />

- Aquaculture/fishing<br />

- Fully Indigenous operated ‘Aburri’<br />

- Steel fabrication business<br />

- Establishing a maintenance service to<br />

undertake road upgrades/town<br />

maintenance<br />

• A community bank for the region<br />

• Delivered on annual priorities<br />

• Committed the Trust budget in full - year-onyear<br />

• Demonstrated results (provided by Trust<br />

recipients)<br />

• Reviewed and refined the Trust’s priorities<br />

annually<br />

• Contributed to the region’s targets as<br />

outlined in the Draft Regional Visionary Plan.<br />

Draft targets include:<br />

- Literacy: NT average for the number of<br />

Grade 7s passing the reading test<br />

- Number of students graduating from<br />

Grade 10 and 12: NT average<br />

- School absenteeism: NT average<br />

- Unemployment rate: NT average<br />

- Weekly gross income: NT average<br />

- Main employer: diversity of<br />

employment in tourism,<br />

accommodation, mining, pastoral,<br />

infrastructure, aquaculture and cultural<br />

industries<br />

Support initiatives that help provide:<br />

• Sustainable community housing<br />

• Relevant family support programs:<br />

- Home routine<br />

- Behavioural support<br />

- Financial management<br />

- Parenting and child care<br />

• Youth support programs<br />

• Opportunities to build a sense of<br />

community spirit<br />

• Delivered on annual priorities<br />

• Committed the Trust budget in full - yearon-year<br />

• Demonstrated results (provided by Trust<br />

recipients)<br />

• Reviewed and refined the Trust’s priorities<br />

annually<br />

• Contributed to the region’s targets as<br />

outlined in the Draft Regional Visionary<br />

Plan. Draft targets include:<br />

- Average cost of living: NT average<br />

- Overcrowding in local homes: NT<br />

average<br />

- Formal youth activities: wide variety<br />

of activities<br />

- Sense of community and town pride:<br />

High<br />

- Law - offences against the person per<br />

1,000: NT average<br />

- Law - offences against property per<br />

1,000: NT average<br />

Support initiatives that help provide:<br />

• High priority: health programs, health<br />

facilities and aged support initiatives<br />

• Sustainable locally-based businesses to<br />

supply affordable, nutritious food<br />

• Delivered on annual priorities<br />

• Committed the Trust budget in full - yearon-year<br />

• Demonstrated results (provided by Trust<br />

recipients)<br />

• Reviewed and refined the Trust’s priorities<br />

annually<br />

• Contributed to the region’s targets as<br />

outlined in the Draft Regional Visionary<br />

Plan. Draft targets include:<br />

- Access to affordable, healthy food:<br />

High<br />

- Drug and alcohol abuse: Low<br />

- Prevalence of chronic diseases: NT<br />

average<br />

Support initiatives that help provide:<br />

• Sustainable eco-friendly businesses such as<br />

a nursery to support mine rehabilitation<br />

activities<br />

• Delivered on annual priorities<br />

• Committed the Trust budget in full - yearon-year<br />

• Demonstrated results (provided by Trust<br />

recipients)<br />

• Reviewed and refined the Trust’s priorities<br />

annually<br />

• Contributed to the region’s targets as<br />

outlined in the Draft Regional Visionary<br />

Plan. Draft targets include:<br />

- Maintaining widespread cattle<br />

grazing on large pastoral properties<br />

- Developing sustainable recreational<br />

fishing industry<br />

- Establishing sustainable eco-tourism<br />

businesses<br />

Support initiatives that help provide:<br />

• Support for the sustainable growth of<br />

existing art and culture organisations<br />

• Sustainable culture-based businesses such<br />

as:<br />

- A cultural tourist centre<br />

• Delivered on annual priorities<br />

• Committed the Trust budget in full - yearon-year<br />

• Demonstrated results (provided by Trust<br />

recipients)<br />

• Reviewed and refined the Trust’s priorities<br />

annually<br />

• Contributed to the region’s targets as<br />

outlined in the Draft Regional Visionary<br />

Plan. Draft targets include:<br />

- Establishing sustainable traditional<br />

hunting and gathering by language<br />

groups<br />

- Generational understanding of<br />

Indigenous culture and traditions:<br />

Well remembered and shared<br />

- Establishing a variety of sustainable<br />

culture-based businesses based on<br />

tourism<br />

Sources: NT Government Department of Business, Economic and Regional Development (DBERD) research presentation to the Trust board titled: ‘Borroloola Community Profile’, Community consultation undertaken by MRM, the Trust Project Officer and Rowland Pty Ltd on behalf of the Trust from March to May 2008


Appendix 3<br />

Appendix 3 — MRM Community Benefits Trust Grants approved 2007 – 2011<br />

Project partner/s Project name Focus Grant value Date approved Project description<br />

Borroloola School<br />

Vocational Education and<br />

Training Centre<br />

Education $110,000 February 2008 • Develop a facility that allows the School to provide quality educational outcomes and vocational experiences to meet<br />

the current and emerging needs of the community<br />

• Grant funding supported the installation of equipment and fit-out of the building.<br />

Mabunji Wunala Crèche Children’s toilet facilities Health $11,275 February 2008 • Provide necessary ablution facilities to ensure the health and wellbeing of the children while in care.<br />

The Smith Family<br />

Learning for Life<br />

Indigenous Programs in<br />

Borroloola<br />

Education $560,000 May 2008 • Breakfast with a Mentor program<br />

• Work observation and work placements<br />

• Celebration of the new school building opening<br />

• My time mentoring program<br />

Borroloola Amateur<br />

Race Club (BARC)<br />

New rodeo chutes Art and culture $20,000 May 2008 • Contribute to the sustainability of the area’s culture<br />

• Replace chutes which were 30 years old, in poor condition and dangerous to stock and competitors<br />

Greenlip Enterprises Aviation training Enterprise and job<br />

creation<br />

$36,120 May 2008 • Provide local Indigenous resident, Richard Baker, with the necessary training to gain his license and secure<br />

employment as a commercial helicopter pilot at Airborne Solutions.<br />

Mungoorbada<br />

Aboriginal Corporation<br />

Purchase of a concrete<br />

agitator<br />

Enterprise and job<br />

creation<br />

$90,000 May 2008 • Build a sustainable local operation that will give the community the resources it needs to conduct maintenance and<br />

construction activities.<br />

Mungoorbada<br />

Aboriginal Corporation<br />

Purchase of a concrete<br />

batching plant and widespan-shed<br />

Enterprise and job<br />

creation<br />

$70,000 May 2008<br />

• Expand the potential business opportunities serviced by the Civil Construction Team.<br />

Mungoorbada<br />

Aboriginal Corporation<br />

New community store<br />

Enterprise and job<br />

creation<br />

$145,960 May 2008 • Develop a new community store to replace the aging existing shop which has poor refrigeration capabilities and lacks<br />

space for growth.<br />

Mungoorbada<br />

Aboriginal Corporation<br />

Livestock business - goats<br />

Enterprise and job<br />

creation<br />

$20,000 May 2008 • Build a fence to contain a herd of around 200 goats and protect them from dingo attack.<br />

Mungoorbada<br />

Aboriginal Corporation<br />

Visitor Accommodation<br />

Centre<br />

Enterprise and job<br />

creation<br />

$69,462 May 2008 • Add a visitor accommodation and kitchen facility to a planned Government Business and Accommodation Centre and<br />

expand its potential uses.<br />

Mungoorbada<br />

Aboriginal Corporation<br />

Livestock business – beef<br />

Enterprise and job<br />

creation<br />

$11,000 October 2008 • Purchase 2 bulls and 10 cows for the Wandigulla Outstation to support the extension of their breeding and export<br />

business.<br />

Mungoorbada<br />

Aboriginal Corporation<br />

Three earthworks<br />

machines – grader, loader<br />

and smooth drum roller<br />

Enterprise and job<br />

creation<br />

$312,400 October 2008 • Purchase heavy machinery necessary to support the expansion of the Civil Construction Team based in Robinson <strong>River</strong><br />

and increase their business opportunities.<br />

King Ash Bay Fishing<br />

Club<br />

Barramundi fish<br />

monitoring project<br />

Environment $203,280 April 2009 • Undertake a two year research program to examine the impacts of increased recreational fishing on barramundi fish<br />

numbers in the <strong>McArthur</strong> <strong>River</strong> near King Ash Bay.


Appendix 3<br />

Project partner/s Project name Focus Grant value Date approved Project description<br />

National Trust of<br />

Australia (Gulf Branch)<br />

Borroloola Old Police<br />

Station Museum Toilet<br />

Repairs<br />

Health $76,162 April 2009 • Conduct necessary repairs to the museum’s ablution facilities.<br />

Malandari Partnership<br />

Acquisition of Borroloola<br />

Bulk Discounts<br />

(For supermarket<br />

infrastructure<br />

requirements not including<br />

the liquor operation)<br />

Enterprise and job<br />

creation<br />

Health<br />

$543,000 August 2009 • Upgrade to the supermarket security system<br />

• Relocation of the Post Office to a separate new building<br />

• Construction of a supermarket annexe for the sale of furniture and boat equipment<br />

• Construction of a two bedroom accommodation unit for use by staff and visiting support personnel<br />

<strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

(MRM)<br />

2008/2009 Indigenous<br />

employment and training<br />

strategy<br />

Enterprise and job<br />

creation<br />

$606,425<br />

(This is 20% of the<br />

total initiative cost<br />

of $2.9 million in<br />

2008/2009)<br />

August 2009 • Develop an effective and culturally appropriate framework for Indigenous recruitment, training and retention at MRM<br />

which encourages and motivates applicants within the local community<br />

• Individually tailor training and career development programs for all employees<br />

• Foster a supportive environment within the workplace, which eliminates racism and celebrates cultural diversity.<br />

<strong>McArthur</strong> <strong>River</strong> <strong>Mining</strong><br />

(MRM)<br />

2009/2010 Indigenous<br />

employment and training<br />

strategy<br />

Enterprise and job<br />

creation<br />

$595,918<br />

(This is 28% of the<br />

total initiative cost<br />

of $2.1 million in<br />

2009/2010)<br />

August 2009<br />

Mabunji Aboriginal<br />

Resource Centre<br />

2010 NAIDOC Festival Art and culture $5,000 August 2009 • Support the costs associated with the delivery of the NAIDOC festival program in 2010 as an important annual<br />

celebration of indigenous cultural heritage.<br />

Roper Gulf Shire Council Pool Maintenance<br />

Roper Gulf Shire Council Multi-purpose community<br />

facility<br />

<strong>Social</strong> and<br />

Community<br />

Development<br />

<strong>Social</strong> and<br />

community<br />

development<br />

$60,000 March 2010 • Cover the cost of consumable materials and utilities to support the operation as it develops its sustainability as a<br />

business enterprise.<br />

$1,000,000 August 2010 • In principle agreement has been given for a $1 million grant to support the development of an indoor sports and<br />

recreational facility in line with identified community priorities.<br />

Borroloola Amateur<br />

Race Club<br />

Bucking Chutes<br />

replacement<br />

Art and Culture $23,450 October 2010 • Purchase 3 new bucking chutes to improve safety for animals and riders and assist the sustainability of the event.<br />

Mabunji<br />

Aboriginal Resource<br />

Centre<br />

Little <strong>River</strong> Youth Diversion<br />

Program<br />

Enterprise and job<br />

creation<br />

$52,095 October 2010 • Create a Juvenile diversion/life skills development for 13-16 year olds.<br />

Mabunji<br />

Aboriginal Resource<br />

Centre<br />

Creche Fencing<br />

Enterprise and job<br />

creation<br />

$47,544 October 2010 • Funding to replace existing perimeter fencing with a new safe and secure fence surrounding the Wunala Crèche.


Appendix 3<br />

Project partner/s Project name Focus Grant value Date approved Project description<br />

Waanyi Nation<br />

Aboriginal Corporation<br />

New business enterprise<br />

led by Ronnie Raggett<br />

Enterprise<br />

development and<br />

job creation<br />

$40,000 October 2010 • Support to engage a consultancy to develop a viable business plan for the growth of a new enterprise to provide<br />

contract machinery operation.<br />

Waralungku Arts Centre Exhibition at Rebecca<br />

Hossack Art Gallery,<br />

London<br />

Arts and culture $50,000 December 2010 • Paintings, prints and wooden sculptures by at least 8 local artists will be featured in an exhibition commencing in July<br />

2011 at the Rebecca Hossack Art Gallery in London.<br />

• Funding support was to assist in airfares but also supports investment in marketing and website development.<br />

Li-Anthawirriyarra Sea<br />

Rangers<br />

Mabunji<br />

Aboriginal Resource<br />

Centre<br />

Two vehicles for ranger<br />

program<br />

Beautifying Borroloola<br />

Project<br />

Environment $160,124 December 2010 • Funding over three years for the acquisition of two vehicles and their maintenance costs to help caring for country<br />

initiatives of the Yanyuwa people.<br />

Environment $26,940 February 2011 • Covers the landscape design costs for the beautification of the town, in particular, the entrance to make the town<br />

welcoming to tourists, provide local job opportunities and build a sense of pride amongst community members.<br />

Department of<br />

Education and Training<br />

Strong Start, Bright Future Education $1,012,000 February 2011 • Contributes to a series of initiatives to be delivered in partnership between the Department, Borroloola School and<br />

MRM.<br />

• Provides pathways toward education and training for all children through to employment and involves a frequent<br />

attender program, incentives for students, vocational education and training opportunities.<br />

• Also supports 10 school-based apprenticeships each year and improvements to Vocational Education Training.<br />

<strong>McArthur</strong> <strong>River</strong> Mine<br />

Mabunji<br />

Aboriginal Resource<br />

Centre<br />

Barkly Regional Arts Inc<br />

Indigenous Employment<br />

Strategy<br />

Funding for NAIDOC and<br />

Boonu Boonu Celebrations<br />

2011<br />

Borroloola and <strong>McArthur</strong><br />

<strong>River</strong> Song People Sessions<br />

Job creation $599,087 February 2011 • Supports the $1.4 million extension of the Indigenous Employment and Training Strategy which is a specific<br />

commitment made by MRM in agreement with the NT Government as part of the Trust objectives.<br />

Art and Culture $27,500 June 2011 • Support for the expansion of the 2011 NAIDOC Celebrations to include the Boonu Boonu Festival as the only<br />

traditional indigenous dance festival in the Northern Territory.<br />

Art and Culture $79,288 June 2011 • Innovative Indigenous cultural maintenance and language preservation project that is recording the traditional songs<br />

of the four local language groups and producing them into contemporary recordings for both archival purposes and<br />

the enjoyment of listeners.<br />

• The process includes documenting Indigenous language and English transcriptions of all songs.


Appendix 4<br />

Appendix 4 — <strong>Impact</strong>/benefit summary table<br />

Potential impact or benefit Positive /<br />

negative<br />

Mitigation measures<br />

Stakeholders<br />

Increased employment opportunities – local Positive • Continue commitment to support local skills development and training through Pathways to Employment strategy<br />

• Consider developing community partnerships allowing flexible workplace arrangements in support of greater<br />

engagement of Indigenous personnel<br />

• Engage with community to increase awareness about employment opportunities at MRM<br />

• Review and update communication processes to ensure advice about employment opportunities is provided in a timely<br />

manner and local people are provided with support to develop their skills / become better positioned to maximise<br />

employment opportunities<br />

• Raise awareness about MRM Indigenous Employment Coordinator through internal engagement with staff<br />

• Review staff retention programs regularly to draw on lessons learned.<br />

Youth employment opportunities – Local Positive • Continue heavy involvement in and support of DET Strong Start, Bright Future program<br />

• Identify and implement mechanisms to support proactive dissemination of information about youth employment and<br />

training opportunities.<br />

MRM Community Reference<br />

Group<br />

Traditional Owners<br />

Roper Gulf Shire Council<br />

(Borroloola)<br />

ISA<br />

Centrelink<br />

Employees<br />

Borroloola School<br />

DET<br />

Employees<br />

Traditional Owners<br />

Youth<br />

Increased local employment leads to greater use of alcohol and<br />

drugs<br />

Negative • Continue enacting zero tolerance policy at MRM work site during work hours<br />

• Support community health initiatives through MRM Community Benefits Trust, sponsorships and donations, including<br />

drug / alcohol education programs and substance abuse support services<br />

• Consider incorporating more substantial drug and alcohol management on site as part of induction / training to<br />

encourage behaviour that can be replicated when back in the community.<br />

MRM Community Benefits Trust<br />

Local Indigenous representative<br />

groups<br />

Roper Gulf Shire Council<br />

Borroloola Police<br />

Borroloola School<br />

Borroloola Clinic<br />

Increased instance of humbugging Negative • Explore strategies to overcome social issues in consultation with NT Government and Traditional Owners / Indigenous<br />

leaders, including possibility of setting up new models for salary payments, undertaking community education programs,<br />

and providing support to workers experiencing humbugging.<br />

NT Government<br />

Traditional Owners<br />

Indigenous representative<br />

groups<br />

Extended mine life until 2036 – increased job stability and<br />

extension of MRM Community Benefits Trust<br />

Increased potential for youth services and facilities to be<br />

implemented in local area as a result of extended MRM<br />

Community Benefits Trust life<br />

Increased traffic may lead to accelerated degradation of roads<br />

and require greater maintenance<br />

Positive • MRM to review the MRM Community Benefits Trust agreement in 2013 to consider mandate and contributions made by<br />

the Trust to community development in Borroloola and the local region, and determine the level of ongoing annual<br />

financial commitment.<br />

• Promote the Trust Project Officer’s visiting times more widely.<br />

Positive • Provide results of consultation relating to youth opportunities to MRM Trust Project Officer and work to help encourage<br />

grant applications in this area.<br />

Negative • MRM to work with NT Government to highlight importance of undertaking an upgrade to existing road.<br />

• Continue maintenance of Mule Creek Road.<br />

MRM Community Benefits Trust<br />

MRM Community Benefits Trust<br />

NT Government


Appendix 4<br />

Potential impact or benefit Positive /<br />

negative<br />

Mitigation measures<br />

Stakeholders<br />

Increased traffic may increase the potential for more accidents Negative • Work with MRM Community Reference Group, NT Government and other groups to develop driver education programs<br />

• Work with NT Government regarding speed limit<br />

• MRM to consider providing bus in/out service from Borroloola to MRM for local employees.<br />

NT Government<br />

Roper Gulf Shire Council<br />

MRM Community Reference<br />

Group<br />

MRM employees<br />

Increased transportation of lead concentrate, leads to increased<br />

risk of spills<br />

Increased employment of local people means they are no longer<br />

able or wish to stay in their home community<br />

Increased flight schedule to MRM may lead to increased<br />

accessibility to and from the area for the community<br />

Opportunities for local and regional businesses to engage with<br />

the mine<br />

Negative • MRM to maintain an ongoing review of existing lead concentrate handling and transportation policy<br />

• Maintain existing emergency response plan<br />

• Develop a disclosure policy ensuring that government and community stakeholders are made immediately aware of<br />

incidents involving hazardous material.<br />

Negative • Consider investigating impact of personnel leaving the community to become FIFO employees on family / community<br />

cohesion<br />

• Work with Territory Housing to highlight limitations the social housing policy poses on expanding Indigenous<br />

employment<br />

• Explore opportunities to encourage private developers to enter the community and develop private accommodation<br />

options, seeking input from Northern Land Council on land tenure issues<br />

• Work with MRM Community Benefits Trust to identify proactive opportunities to work with the NT Government.<br />

Positive • Work with Airnorth to make as many flights as possible available to the community and consider ways to communicate<br />

flight availability / schedule to people in the region<br />

• Engage with NT Health to develop improved means and process of airlifting elderly patients to Darwin using Airnorth<br />

service.<br />

Positive • MRM’s local procurement program will continue to underpin operations throughout the proposed Project<br />

• Communicate with local businesses to increase level awareness about MRM expectations and requirements for supplier<br />

accreditation<br />

• MRM will explore opportunities to work with business and industry groups to support local businesses wishing to meet<br />

requirements to supply to the mine<br />

• MRM will report success and development of local procurement programs through the MRM Community Reference<br />

Group and other local services / NGOs.<br />

MRM – internal<br />

Borroloola Police<br />

Roper Gulf Shire Council<br />

NT Government<br />

Northern Land Council<br />

Community<br />

Airnorth<br />

Community<br />

NT Health<br />

Borroloola Clinic<br />

Businesses<br />

Indigenous / local services and<br />

NGOs<br />

MRM Community Groups<br />

Increased frequency and scope of environmental monitoring Positive • Investigate potential to increase frequency of monitoring at key locations, such as Surprise Creek. MRM<br />

Increased accessibility to monitoring results Positive • Consider providing community and key stakeholders increased access to and more detailed information on monitoring<br />

results achieved, eg. expand amount of information included in written materials to provide more depth and context to<br />

monitoring results<br />

• Consider increasing access to MRM environmental representatives in Borroloola MRM office<br />

• Increase depth / amount of information on monitoring process and results, while ensuring it does not overwhelm<br />

stakeholders / the community with technical jargon.<br />

MRM<br />

All<br />

Traditional Owners / Indigenous<br />

leaders<br />

Sea Rangers


Appendix 4<br />

Increased opportunities for Traditional Owners / Indigenous<br />

leaders to be involved in the rehabilitation process<br />

Positive • Provide community with detailed information about ongoing environmental monitoring / management programs<br />

through established communication channels<br />

• Explore opportunities to engage a Gurdanji Ranger Group in environmental management / care for country around the<br />

mine in conjunction with MRM personnel<br />

• Investigate potential to fund this involvement through MRM Community Benefits Trust<br />

• Consider establishing formal environmental education program in conjunction with Borroloola School to engage<br />

students in establishment / management of rehabilitation work or other environmental initiatives.<br />

•<br />

Traditional Owners / Indigenous<br />

leaders (especially Gurdanji)<br />

MRM Community Benefits Trust<br />

Borroloola School<br />

Community<br />

Responsible mine closure rehabilitation works and planning Positive • Review MRM’s communication techniques / channels with community to identify where communication needs to<br />

increase, supported by additional ‘face time’ in Borroloola<br />

• Investigate avenues to communicate rehabilitation plans with community in preparation for mine closure and beyond,<br />

with view to involving community members (particularly TOs) in rehabilitation works.<br />

Community<br />

Traditional Owners / Indigenous<br />

leaders<br />

Perception that expanded TSF will result in greater likelihood of<br />

seepage contaminating ground and surface water<br />

Negative • The TSF has been a significant area of study under the EIS<br />

• Monitoring will continue<br />

• Emergency spillways will be constructed<br />

• MRM will communicate with the community and stakeholders about TSF management and MRM procedures.<br />

MRM<br />

Expansion of TSF may impact on visual amenity Negative • It is unlikely the TSF will be visual from the Carpentaria Highway.<br />

Perception that OEF run-off may be acidic and pollute water<br />

sources (ground and surface)<br />

Negative • MRM will continue to use existing procedures (exceeding international requirements) to minimise potential for<br />

potentially-acid forming material contamination run-off<br />

• MRM will communicate with the community and stakeholders about OEF management and MRM procedures.<br />

MRM<br />

NT Government<br />

Traditional Owners / language<br />

group members<br />

Businesses<br />

Community Groups<br />

Indigenous / local services and<br />

NGOs<br />

Other surrounding communities<br />

Expansion of OEF may impact visual amenity Negative • Due to importance of OEF in managing environmental impacts of overburden, there is limited capacity to reduce the OEF<br />

size<br />

• MRM will investigate strategies for contributing to local environmental enhancement to offset impact of visual amenity,<br />

including potential to establish biodiversity offset zone<br />

• MRM will consult and involve stakeholders and the community in rehabilitating the OEF through life of mine and<br />

closure.<br />

MRM<br />

NT Government<br />

Traditional Owners / language<br />

groups<br />

Indigenous / local services and<br />

NGOs<br />

Other surrounding communities<br />

Disturbance of cultural heritage sites due to project activities<br />

during construction and operation<br />

Increase in barge movement at Bing Bong – impacting people /<br />

cultural activities (eg. fishing)<br />

Negative • Maintain commitment to cultural heritage management, guided by Xstrata plc’s Business Principles and MRM’s Cultural<br />

Recognition Policy<br />

• Cultural heritage study revealed no areas of cultural significance will be disturbed.<br />

Negative • Continue to communicate with the community and stakeholders about outcomes of Australian Institute of Marine<br />

Scientists (AIMS) annual reports on the area and barge schedules / routes.<br />

Traditional Owners<br />

All


Appendix 4<br />

Increased involvement by Traditional Owners in cultural heritage<br />

management activities<br />

Increase in barge movement at Bing Bong – impacting marine<br />

life<br />

Positive • MRM will explore opportunities to engage a Gurdanji ranger group to be actively involved in environmental<br />

management and care for country around the mine in conjunction with MRM environmental personnel.<br />

• MRM will investigate the potential to support the Gurdanji proponents to prepare a funding submission to the MRM<br />

Community Benefits Trust, to support the establishment and short-term sustainability of the ranger group.<br />

• Investigate how cultural heritage management programs / processes can be further communicated with the community<br />

to promote understanding and awareness.<br />

Negative • Work closely with Indigenous care for country groups to ensure involvement in monitoring and help address potential<br />

impacts on marine life<br />

• Collaborate on agreements for ongoing involvement in environmental management of the area.<br />

Traditional Owners / Indigenous<br />

leaders<br />

Community<br />

Sea Rangers<br />

Traditional Owners<br />

Human rights breaches – personnel and community Negative • No additional mitigation required – MRM adheres to policies and procedures required by the Australian Government and<br />

international best practices.<br />

MRM<br />

Increased mine production may lead to further resources to<br />

increase consultation / support / communication between MRM<br />

and community<br />

Positive • Consider ways to improve community consultation with community, ensuring information is provided in a way that is<br />

best-suited to the audience<br />

• Identify whether additional MRM community relations resources can be made available to increase ‘face time’ in<br />

Borroloola<br />

• Increase site tours / public meetings / MRM representation at community and NGO meetings.<br />

MRM

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