in rolls the media coverage : the age, page-3

From the Herald Sun:


Martu reap Reward

Felicity Williams

April 01, 2008 12:00am

RIO TINTO'S attempts to sell the Kintyre uranium deposit in Western Australia without the support of its traditional owners came under fire yesterday.

The criticism came after junior explorer Reward Minerals signed a landmark agreement with the same indigenous group.

In the first deal to give Aboriginal people equity in an Australian-listed company as part of native title negotiations, the Martu people have approved Reward's planned potash mine at Lake Disappointment, also in WA, in return for a shareholding in the would-be miner.

The historic agreement gives the Martu a stake of just over 10 per cent in Reward, as well as milestone payments to be made at significant stages in the development of the project and royalties from any potash sales.

Reward and the Martu first started negotiations over Lake Disappointment in February 2006, but talks broke down last August after the parties failed to agree on the question of equity.

They returned to the negotiating table in February this year as Reward sought to proceed with the Lake Disappointment development to take advantage of higher potash prices.

Teddy Biljabu, chairman of the Western Desert Lands Corp - the traditional owners' body corporate - said the Reward agreement signalled the end of indigenous people "being treated like speed bumps in their own country" and set a precedent for future deals.

"Unlike the disrespectful conduct of Rio Tinto in their Kintyre sale process, Martu intend to support companies like Reward when they act in a respectful manner offering transparency, fair value and equity," he said.

"I have to ask why it has to take a little company like Reward to show the Rio Tintos of this world how to be respectful and offer full value."

The agreement comes as Rio pushes ahead with the planned $600 million sale of Kintyre despite strident opposition from the Martu, after the world's third biggest miner and the indigenous group reached an impasse over the same equity issue.

IndiEnergy principal Joe Procter, who acts as corporate adviser to the Martu, said there were "no relations" with Rio and that talks between the two parties had "broken down completely".

However, a Rio Tinto spokeswoman brushed off the suggestion that the miner's relationship with the Martu had disintegrated.

"We are continuing to try to work with the Martu to achieve the best possible sales process and outcome at Kintyre," she said.

"We respect the Martu and have a strong relationship with them and we hope to continue to work with them."

News that the Lake Disappointment project has the go-ahead sent investors piling into Reward shares, which surged 25 to $1.25.

Reward managing director Michael Ruane said: "While the precise wording of terms of the agreement remain to be finalised, Reward Minerals is confident the details will be completed in an amicable and timely manner.

"The negotiating parties are of the belief that the resultant agreement represents a win-win situation for all concerned."