Federal Court dismisses legal challenge to Rio Tinto mining lease

The Federal Court has rejected a legal challenge to a mining lease agreement between Northern Territory based Aboriginal traditional land owners and the mining giant Rio Tinto.

In 2011, a 42-year lease agreement was approved by the Federal Government over land used for East Arnhem Land based Gove alumina refinery near Nhulunbuy .Djiniyini Gondarra , the Aboriginal leader, estimated the deal was worth $19 million per year to the Aboriginal clan groups based in the area.

He said even some groups did not receive any money.

On Dhurili nation’s behalf Dr Gondarra started the legal action, arguing that lease as well as the agreement was invalid as the Northern Land Council (NLC) could not consult properly or advise all the relevant clans.

At one point, Dr Gondarra had suggested the Dhurili nation were the traditional owners of a part of land under lease but it was disputed and there was also no contrary evidence tendered.

While giving her judgement in Melbourne, Justice Susan Kenny had dismissed the challenge as she felt the federal government and the NLC had fulfilled all their obligations.

The closure of the alumina refinery will be done by Rio Tinto this year but they will continue with mining operations. The traditional owners will earn their mining royalties.