Miners, elder label Wangkatja Tjungula Aboriginal Corporation’s negotiation fee demands ‘unreasonable’

A respected Indigenous elder and prospectors in the Goldfields are vexed by an Aboriginal corporation’s “completely unreasonable” negotiation costs, including $70,000 to start talks over the heritage approvals needed to develop a mine. In response, the Aboriginal corporation facing criticism has said its fees are “standard” and in some cases below regular industry rates. The Wangkatja Tjungula Aboriginal Corporation is the prescribed body corporate for an expansive parcel of minerals-rich Goldfields land north of Kalgoorlie spanning about 30,900sqkm — about the size of Belgium. This means WTAC oversees Native Title matters over the vast area — called Nyalpa Pirniku — encompassing towns such as Laverton and Menzies, as well as gold mines run by the likes of majors AngloGold Ashanti and Northern Star Resources. Smaller mining players in the region have told The West Australian their hunt for paydirt is becoming increasingly difficult due to the price of doing business with WTAC. Explorers essentially need the group’s consent for a green light from the State Government to develop mining projects on Nyalpa Pirniku Native Title land. Documents provided to The West by numerous sources detail the standard costs of dealing with WTAC, which is headlined by an upfront payment of $70,000 to the Aboriginal corporation for negotiations to commence. WTAC “negotiation team members” and Nyalpa Pirniku cultural advisers charge $1200 a day, while WTAC staff and consultants “assisting with or at negotiation meetings and negotiations” receive between $150 and $300 an hour. WTAC’s legal adviser, which is Umanity Group, receives $425 per hour. “Nyalpa Pirniku co-ordinator” — WTAC chair David Canning — has a rate of $120 an hour and fellow Nyalpa Pirniku co-ordinator — Umanity Group owner Vanessa Malu Cecchi — has a rate of $425 an hour. East Perth-based Umanity, which specialises in Aboriginal heritage, is run by Italian-born John Cecchi. Costs for travel, meals, venue hire and accommodation are not included in the rates and are paid by the mining or prospecting company. Hire car fuel, for example, is charged at $2.50 a litre. All of the expenses listed are exclusive of GST and WTAC also bills an additional 25 per cent on “total costs as set out in the relevant WTAC negotiations funding invoice”. The Eastern Goldfields Prospectors Association said WTAC’s demands are “completely unreasonable”. “Seventy thousand dollars just to have a first meet and greet, then further subsequent substantial payments for ongoing discussions. It is clear that they expect the proponent (explorers and miners) to fund all of their costs, which in our view is unreasonable and unfair,” the EGPA stated. “EGPA is aware that the largest of the miners pay up, but more junior explorers and prospectors can’t afford it. “Through our network we see small miners and junior ASX-listed explorers being financially crippled, and some are packing it all in because the costs of Native Title and heritage consultations have spiralled out of control. “Prospectors are the lifeblood of the mining industry; without them the industry begins to die.” Nyalpa Pirniku elder Aubrey Lynch, who spearheaded the claim for Native Title land that WTAC now has jurisdiction over, said he was concerned WTAC and its consultants were using Native Title and heritage as “a weapon against exploration and mining”. “These lawyers with consultants are also destroying very good relationships with mining companies who have worked very hard with elders,” he told The West. Mr Canning defended the costs, including the upfront $70,000 payment and 25 per cent administration fee. “Funding is generally sought in lump sum tranches to cover WTAC costs of meetings, seeking professional advice, document drafting and settling etc over several weeks or months of negotiations at a time,” he said. “The lawyer’s rates in the (negotiation) protocol are less than or at the minimum rate for lawyers recommended by the WA Government’s Legal Costs Committee. “The figure of $70,000 is not a fee for a single meeting, it represents an initial tranche of funding typically used to support initial phases of work that is necessary during a broader negotiation. “The 25 per cent administration fee to WTAC is a standard fee that prescribed body corporates and Native Title land councils charge to recoup at least part of their significant costs in managing and actioning negotiations.” Mr Canning said mining companies can seek a review from the Office of the Registrar of Indigenous Corporations if they believe the costs charged by WTAC are “unreasonable”. Magnetic Resources’ Lady Julie gold project last month became the first mining development to secure Native Title approval from WTAC since the Nyalpa Pirniku Native Title came into effect in October 2023.