Havilah Resources has signed the Native Title Mining Agreement for Kalkaroo, opening the way for grant of a Mining Lease over the copper-cobalt-gold project area in South Australia.
|Dr Chris Giles signing the Kalkaroo Native Title Mining Agreement with the Native Title Holders on behalf of Havilah|
The Agreement was executed between the Ngadjuri Adnyamathanha Wilyakali Native Title Aboriginal Corporation (NAWNTAC) and Havilah, taking place at the conclusion of a special sitting of the Federal Court in Orroroo.
A consent determination was made in favour of NAWNTAC in respect of the overlapping native title claims of the Adnyamathanha, Ngadjuri and Wilyakali people. NAWNTAC is a corporate entity that jointly represents the interests of the three native title groups and will be the first point of contact for future native title matters in this specific area.
This is the culmination of more than five years of negotiations and numerous meetings in good faith between representatives of the native title holders and Havilah. Acceptance of the concept of an EBITDA (earnings before interest, tax, depreciation and amortisation), which is a profit-based compensation payment rather than an “off-the-top” revenue-based royalty payment, paved the way for finalisation of a fair profit-sharing arrangement that achieves the objectives of both parties. It assists Havilah in times of low profits while allowing NAWNTAC to share fully in times of high profitability of any future mining operations. The Agreement also focuses on the very important non-financial benefits such as employment, training, and business development opportunities for the native title holders over the life of the mine.
For Havilah, the Agreement is of vital importance as it is a key requirement for the granting of a Mining Lease by the Department for Energy and Minerals (DEM) of South Australia. Following lodgement of the Agreement with DEM and completion of the statutory process for registration of native title mining agreements as provided in Part 9B of the Mining Act, it is expected that DEM will offer the Kalkaroo Mining Lease to Havilah in accordance with its due process.
This represents another very significant milestone on the path to the potential development of the Kalkaroo project as a major new copper-cobalt-gold mine in South Australia’s northeast.
Commenting on signing of the Kalkaroo Native Title Mining Agreement, Havilah’s newly appointed Chairman, Mr Mark Stewart said that the importance of the execution of this Agreement could not be overstated and represents a massive leap forward in the implementation of Havilah’s Copper Strategy – Enhanced by Cobalt, as it should now “result in the grant of the Kalkaroo Mining Lease”.
“It is the culmination of many years of patient and persistent negotiation, introducing innovative concepts such as EBITDA, by Havilah executives, namely Chris Giles and Walter Richards,” Mr Stewart said.
“Acceptance of the EBITDA profit sharing concept is a good outcome for all parties. I would like to acknowledge the support of our legal advisor, Abigail Steed, and also the co-operation and good will of the native title holder groups and their legal advisors over an extended period of time,” he said.