cost overrun & delay...smh news, page-12

landmark iron ore mining deal signed The last paragraph is very very interesting....:))))

Landmark iron ore mining deal signed

Sunday Apr 23 16:53 AEST
A landmark agreement has been signed between the traditional owners of Koolan Island and mining company Aztec Resources to re-open iron ore mining on the remote Kimberley island, north of Derby.

The re-opened mine is expected to generate up to 400 jobs, with 30 per cent of the positions being filled by indigenous people.

Construction of the mine is expected to begin later this month, with the initial phase employing up to 220 people and an additional 200 positions being created when the mine is fully operational.

The Koolan Island mine, off the Kimberley coast 130 km north of Derby, was operated by BHP between 1965 and 1993 producing 68 million tonnes of iron ore.




The new mine is expected to last nine years and to produce four million tonnes of high-grade iron ore every year. Ongoing exploration is expected to identify more resources on the island.

Executive director of the Kimberley Land Council Wayne Bergmann said the agreement set a new benchmark for the Kimberley and delivered a range of benefits to the Dambima-Ngardi Traditional Owners and other indigenous people of the region.

The Dambima-Ngardi people have asserted Native Title rights over nearly 28,000 square km of land and sea north of Derby, including Koolan Island.

"This is another example of Native Title providing positive outcomes for local people and the region," Mr Bergmann said.

"Aztec and the Dambima-Ngardi people have negotiated with good will, and now some of the wealth generated from Koolan Island will stay here in the Kimberley."

The agreement includes provision for the protection of sites of significance and the involvement of traditional owners in environmental decisions.

Under the agreement, Aztec will provide monetary payments and shares to a charitable trust established for the traditional owners.

On the closure of the mine the traditional owners will have the option to purchase the mine's buildings at a nominal fee.

State Indigenous Affairs Minister Sheila McHale was present at an official signing of a co-existence agreement between Aztec Resources and the Dambima-Ngardi people, on Koolan Island at the weekend.

Ms McHale said the agreement offered new employment and business opportunities to Traditional Owners.

"The Dambima-Ngardi people and Aztec Resources are aiming to have up to 30 per cent of the workforce filled by Indigenous people by the eighth year of operation - well above the industry standard of 10 per cent," Ms McHale said.

Aztec acquired sole control of the island in 2000 and began exploration in 2004. The company proposed recommencing mining operations on Koolan Island in March 2005 and approached the Kimberley Land Council in an attempt to broker a deal with the traditional owners.

Aztec has buyers in Japan and China committed to take all of the mine's expected high grade ore.

http://news.ninemsn.com.au/article.aspx?id=96966

T10:))))