Rio Tinto in solar farm deal with Forrest foes
The Indigenous leader embroiled in a legal dispute with mining billionaire Andrew Forrest says traditional owner groups with land rights over huge tracts of minerals-rich Western Australia are in the “right place at the right time” to become major players in renewable energy.
Rio Tinto is strengthening its ties to the Michael Woodley-led Yindjibarndi Aboriginal Corporation (YAC), with the miner set to become either a customer or equity partner as the Yindjibarndi look to develop solar and wind farms.
Rio Tinto iron ore boss Simon Trott and Yindjibarndi Aboriginal Corporation chief executive Michael Woodley outside the former Victoria Hotel in Roebourne on Friday.
Rio will work with the Yindjibarndi Energy Corporation on developing a 75-150 megawatt capacity solar farm adjacent to Rio power transmission lines about 50 kilometres from Karratha.
“What we have here is an opportunity. Once there is commitment from industry to decarbonise we can contribute through our projects,” Mr Woodley said. “We are in the right place at the right time.”
Yindjibarndi Aboriginal Corporation launched a renewable energy business in July soon after the Federal Court started hearing evidence in a case where the traditional owner group is seeking about $1 billion in compensation from Dr Forrest’s Fortescue Metals.
YAC said the renewables venture did not depend on a court-ordered payout. The Yindjibarndi have been battling Fortescue for about 16 years and received no royalties from the company’s mining on Pilbara land, where they are recognised as having the strongest form of native title.
Yindjibarndi Aboriginal Corporation signed a rail access agreement with Rio last year and is now behind one of Australia’s biggest renewables projects, in partnership with Philippines-listed ACEN.
Through the partnership, YAC is working on plans to develop, own and operate large-scale renewable energy projects of up to 3 gigawatts through billion-dollar investments in the heart of iron ore country.
Yindjibarndi Energy Corporation chief executive Craig Ricato said it had sufficient funding through the ACEN partnership to carry out feasibility and approvals work. Debt and equity options are under consideration for future projects.
Rio has estimated it would require about 3 gigawatts of renewable power to decarbonise its entire iron ore mining, rail and port operations. It is targeting 600-700 megawatts in renewables to displace gas used in its four power stations in the Pilbara.
Rio iron ore boss Simon Trott said it would own and operate solar farms like the one at its new Gudai-Darri mine, and look for supply from third parties, such as under its Yindjibarndi deal, with other traditional owner groups.
Rio signed the revised rail royalties deal with YAC last year as it started to modernise all agreements with traditional owners as part of a reset following the destruction of Juukan Gorge on the lands of the Puutu Kunti Kurrama and Pinikura People.
The revised agreement guaranteed YAC $20 million a year for at least the next 10 years.
Rio is currently dealing with the fallout from a blast at its Nammuldi operations, with traditional owners the Muntulgura Guruma accusing the mining giant of downplaying the harm it may have caused to a rock shelter. A blast at Nammuldi in August caused the fall of a small tree and a rock from the overhang.
The Muntulgura Guruma stopped heritage survey work on a Rio iron ore project last week in response to Rio telling investors that assessments at Nammuldi found no structural damage to the rock shelter, and no damage to cultural materials.
The Yindjibarndi and Fortescue case has been adjourned until March, when expert witnesses will start providing evidence. Fortescue has told the court the WA government should pay any compensation owed to the Yindjibarndi people because the state is liable under the Commonwealth Native Title Act.
The author travelled to the Pilbara as a guest of Rio Tinto.
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Mining
Fetching latest articles