Traditional owners' $2 million loss as Nathan River Resources collapses 'undermines' promises
The open-pit Roper Bar iron ore mine has been plagued by financial issues for several months. (Supplied: Nathan River Resources)
In short:
The Northern Land Council says Nathan River Resources undermined its own promises to traditional owners by failing to pay royalties before it collapsed.
The company went into administration last month and owes about $360 million to a range of creditors including the NT government, contractors and staff.
What's next?
The NT government says it will ensure the company meets its environmental rehabilitation obligations.
The Northern Land Council says Nathan River Resources' [NRR] failure to pay it more than $2 million in royalties before it collapsed undermines the promises it made to traditional owners.
NRR went into administration in late May with about $360 million owed to a range of creditors including the NT government and traditional owners.
This followed a prolonged period of financial trouble where the company also stood down workers without pay in April and stopped operations at the Roper Bar site, 600 kilometres south-east of Darwin.
The ABC understands Aboriginal people in the nearby town of Borroloola who were employed by NRR were also owed several weeks of unpaid wages.
Yuseph Deen said traditional owners agreed to mining activities on the basis that companies would meet their end of the deal. (Supplied: Northern Land Council)
The Northern Land Council [NLC] represents traditional owners in these matters and CEO Yuseph Deen said royalties were paid to deliver economic benefits to communities close to the mine.
He said NRR's failure to pay would have serious impacts on the community.
"Given the history of mining and exploration activities on native title land in the region the impact of the unpaid monies is significant," he said.
"Native title holders have agreed to mining activities on the basis that companies will comply with their obligations, including making agreed payments.
"When those payments are not made it undermines the benefits that native title holders were promised in return for allowing for the use of their land."
Road trains had transported ore from the mine to the Bing Bong port. (ABC News: Michael Franchi)
Traditional owners were also concerned about the environmental impact of the mine and whether the site would ever be rehabilitated given NRR's financial problems.
Staff have alleged NRR's operations were polluting the environment near the loading, barging and mining operation.
Mr Deen said rehabilitating the site was critical to protect the long-term interests of Aboriginal communities in the region, and expected the NT government to enforce this.
"The NLC expects that there should be appropriate security arrangements in place with the NT government so that if a mining company becomes insolvent rehabilitation can still be carried out without delay and costs to native title holders," he said.
An NT government spokesperson said authorities would continue to monitor NRR operations to ensure environmental obligations were met.
Staff have alleged operations were unsafe and polluting near the loading, barging and mining operation. (Supplied)
Taxpayer also owed royalties
The NT government has also missed out on receiving royalties and payroll tax from NRR, with almost $9 million owed according to ASIC documents.
Unions and contractors impacted by NRR's collapse have previously said the NT government should have stepped in earlier.
A government spokesperson said employment matters were NRR's responsibility, and the government expected the company to comply with workplace laws.
"The government has been in direct contact with the mine regarding these expectations," the spokesperson said.
"The Department of Mining and Energy has also engaged with the Fair Work Ombudsman to ensure relevant information is available to affected employees."
The ABC has attempted to contact Nathan River Resources multiple times since April and is yet to receive a response.