Indigenous group appeals ruling vs. Australian mining company and seeks $1.3 billion compensation

MELBOURNE - Australia's Yindjibarndi Indigenous group said on Wednesday it had lodged an appeal with the federal court over the amount of compensation awarded against Fortescue FMG.AX for mining on their lands without an agreement since 2012.

The Yindjibarndi people brought a claim against the miner and the Western Australian state government for A$1 billion ($718 million) in cultural loss and in excess of A$800 million in economic loss, arguing ​it should be paid a share of the profits from the mine.

An Australian court in May ordered Fortescue, the world's fourth-biggest iron ore miner, to pay A$150 million in compensation to the group for cultural losses caused by mining. It also awarded A$136,757 for economic losses, and A$217,152 in compound interest on the economic loss amount.

The decision marked one of the largest ever payouts in Australia's history brought under native title laws recognising Indigenous rights and interests in certain parcels of land.

On Wednesday, the Western Australia Attorney General Tony Buti said the state government had also filed an appeal of the decision.

“Native title compensation is a complex and emerging area, and it is important that we have clarity on the law to support future negotiations and native title settlements across the State," he said in a statement.

Australia is the world's largest iron ore producer, most of which comes from Western Australia's Pilbara region which is the traditional home of dozens of Indigenous groups. Miners have been updating their agreements with these groups since Rio Tinto destroyed two culturally significant rock shelters at Juukan Gorge in 2020, triggering a reckoning about cultural heritage damage and compensation.

Yindjibarndi Ngurra Aboriginal Corporation (YNAC) CEO Michael Woodley said YNAC’s appeal related to the amounts awarded by the court for both economic and cultural loss.

The group argues the court should have tied its compensation to typical royalty payments under Pilbara native title agreements. Instead, it assessed economic loss based on the value of the land, but disregarded any value for the iron ore deposits.

It also argues that it is entitled to compensation for social division in its community caused by the mine.

In its full judgment, the Federal Court found that significant damage had been done to Yindjibarndi song lines and other areas of cultural heritage, including 240 sites designated by Fortescue as heritage places, of which 124 had been completely destroyed. Song lines are routes of cultural significance across the country.

The court noted that this damage was legal and approved through government processes, but without the approval of YNAC, which holds exclusive native title rights over the land.

Fortescue has continued to mine on Yindjibarndi native title land since 2012 without an Indigenous Land Use Agreement or any other agreement with YNAC, the group said.

Fortescue declined to comment but has previously said it sought to reach settlement with YNAC for 15 years and has paid the awarded sum.

($1 = 1.3930 Australian dollars)

($1 = 1.3922 Australian dollars)

-Reporting by Melanie Burton in Melbourne and Renju Jose in Sydney. Additional reporting by Helen Clark in Perth; Editing by Jacqueline Wong and Lincoln Feast/Reuters