Thursday, 31 May, 2007

by Barry Fitzgerald
The Age

THE Mirarr people stand to benefit from multimillion-dollar royalty flows if they ever agree to the development of the Jabiluka uranium deposit in the Northern Territory.

Just how big is not known.

But using present uranium prices and the 4.25 per cent net sales revenue paid by Rio Tinto uranium subsidiary Energy Resources of Australia at the nearby Ranger mine, the royalty could be worth as much as $71 million a year on a development producing 5000 tonnes a year.

If it takes a 10 per cent royalty to help secure Mirarr approval, the royalty stream balloons to $168 million a year. At 20 per cent, it becomes $336 million and at 30 per cent — as some talk suggests might be needed — it becomes more than $500 million.

The Mirarr would not become the new rich of Kakadu, as it is assumed that the royalty collection would, as with Ranger, be the responsibility of the Federal Government, which would pass the royalties to various NT Aboriginal groups, including the traditional owners.

In a political environment where land councils and other Aboriginal representative groups are under funding pressure, the independence from Canberra that could come from a large royalty stream from Jabiluka will be tempting for the Northern Land Council and other representative groups.

But the leader of the Mirarr, Yvonne Margarula, continues to demonstrate that there is more to her opposition than Aboriginal politics and money.