Mr Michael Woodley Chairman of the Yindjbarndi Aboriginal Corporation has accepted Twiggy Forrest's offer of a pow-wow but will have a deaf ear. Woodley is after a 10% royalty instead of usual Pilbara 0.5% & will go to Arbitration. Woodley appears to think He has twiggy over a barrel as I think Woodley is of the opinion residing Judge most probably will have sympathy towards a Yes Vote thus any increase in His favour would be a victory. Maybe not so as twiggy is no fool & just might close the mine down.
You don't know a lot about what you're talking about.
You could write a book on this, and Paul Cleary has, called 'Title Fight', read that if you have any genuine interest.
A few matters of fact.
1. The usual Pilbara royalty is not 0.5%, I'm guessing you got that from one of Astons columns in the AFR, he has been doing some good work, but he is wrong on that fact. The average is more like 1.5-2%. Remember that is the average, low as 1%, high as 2.5%, there is one outlier at 3%. A few at 3 and one at 3.5% in the Kimberley.
2. Your speculation on arbitration is completely wrong, both on how the system works legally and how it actually works in practice. Legally, the Native Title Tribunal arbitrates if agreement between Aboriginal landowners and the Mining or petro company cant be reached, (agreement is reached in the vast majority of cases, see below) under the Act the Tribunal is meant to be a 'neutral Arbiter'. In practice they always find in favour of the mining company. Roughly 150 arbitrations since 1993 and I think the current score is miners 147, blackfellas 3 or 4. And those 3 or 4 were very small marginal mines, or quarries, where the cultural values were high and irrefutable. Obviously, this means that in most cases Aboriginal landowners take whatever deal they can get to avoid arbitration. Some miners (there are good and bad, TF is the latter) actually say to Aboriginal people in negotiations 'take the deal or we go to arbitration'.
Another thing on the arbitration process, the Tribunal cannot rule on royalty rates under the act. They can send the parties back to mediation, or say yes to the development with no reference to royalty so the miner pays what they feel like paying (this is what usually happens), or they can knock back the development, (remembering the 150:1-odds of that happening).
3. Forrest has fought the land claim 3 times, and lost 3 times. Christ knows how much money he has spent on legal fees, it would be at least $10 mill, and maybe as high as $20 mill, maybe even higher. He is in breach of his legal responsibilities to negotiate in good faith with the TOs.
4. Considering all of the above, and the basics of negotiation strategy, who in their right mind would not go hard at him? They won't get 10%, but asking for it is making a strong statement. Its an opening bid, and a justifiable one. The mine has been operational for 5-odd years, a mine life of 25 years, thats 20% lost royalties right there, with opportunity costs, as well as the money spent on opposing the claim, the lack of good faith that represents, it is perfectly understandable. Hopefully they get a good deal, a just deal. 4 or 5% IMO all things considered.
Twiggy might close the mine down? Not sure if you're taking the *smile* or not. No mine in Australia has ever, contrary to some tabloid mythology, ever been closed due to payments or any other obligations to Aboriginal TOs, not ever. Zero. If a mine gets closed its because the ore has run out, or its not economically viable due to logistic or market factors.