Fortescue ordered to pay $150m in native title compensation over Pilbara mining operations

Fortescue ordered to pay $150m in native title compensation over Pilbara mining operations

Photo: Fortescue via Facebook

Mining giant Fortescue Ltd (ASX: FMG) has been ordered by the Federal Court to pay $150 million in compensation for cultural loss to the Yindjibarndi people over native title damage caused by its Solomon Mine Hub operations in Western Australia's Pilbara region.

The ruling, handed down today, also determined $100,000 plus interest in economic loss compensation payable to the Yindjibarndi Ngurra Aboriginal Corporation RNTBC, which brought the case on behalf of the Yindjibarndi native title holders.

The case was initiated in 2022, five years after the Yindjibarndi people were granted exclusive native title over the area encompassing the Solomon Mine Hub.

About 75 per cent of the hub's 400-square-kilometre footprint extends across the Yindjibarndi native title determination area.

The $150 million cultural loss award falls well short of the Yindjibarndi's original claim of $1.8 billion, which comprised $1 billion for cultural damage, $678 million for economic loss, $34.85 million for destruction of sacred and heritage sites, and $112.14 million for social disharmony.

The economic loss determination of $100,000 represents a particularly stark reduction from the $678 million originally sought, though the Federal Court's full reasons for the assessment have not yet been published.

In a statement to the ASX this evening, Foretescue says it will review the reasons once available. 

The Yindjibarndi have asserted that Fortescue has earned $80 billion from the Solomon Mine Hub and that the Western Australian Government has received $10 billion in royalties from the operations.

Fortescue has previously denied causing community disharmony, asserting that its teams work closely with many traditional custodians on heritage matters to ensure they are managed sustainably and responsibly.

Fortescue has not indicated whether it intends to appeal the Federal Court determination.

The ruling adds to a growing body of Federal Court jurisprudence on native title compensation.

In a separate but related matter, the Federal Court awarded $54 million in cultural loss compensation and $743,408 in economic loss in the McArthur River case, which has established key precedents for how cultural loss is assessed under native title law.

The case against the Northern Territory Government determined the payout for the Ngaliwurru and Nungali peoples as compensation for the loss of native title rights caused by the construction of a bridge and a road on their traditional lands near Timber Creek.

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