Mining magnate Andrew “Twiggy” Forrest has defended not signing a native title compensation agreement with Yindjibarndi traditional owners in the Pilbara, saying it could lead to an Alice Springs style “alcohol disaster”. 

The Yindjibarndi people were awarded native title with exclusive possession by the Federal Court in 2017, and then beat an appeal against the decision by Fortescue Metals Group, which was founded by Mr Forrest. 

The iron ore miner tried to appeal to the High Court, but it refused to grant leave to FMG to appeal in 2020. 

However, negotiations over an Indigenous Land Use agreement fell though last year, and the Yindjibarndi have launched a native title compensation case in the Federal Court to force FMG to pay royalties for mining on their country.

Royalties create ‘alcohol disasters’

Mr Forrest today defended the company’s failure to come to a compensation agreement with the Yindjibarndi, and said welfare payments as well as mining royalties had contributed to “alcohol disasters” in towns like Alice Springs.

“Ending the indigenous disparity is not done with cash,” Fortescue’s executive chairman said on a Wednesday conference call with journalists and analysts.

“We’re not going to exacerbate opportunity without responsibility, which has caused the deep social harms, which we are witnessing today.”

Alcohol fulled crime and anti social behaviour in Alice Springs captured national attention in recent weeks, with Prime Minister Anthony Albanese visiting the Northern Territory town to meet stakeholders and work on solutions.

On a conference call with journalists and analysts to discuss to the iron ore miner’s latest earnings release, Mr Forrest slammed what he called “an era of cash for nothing.” 

“I believe in real, practical action to end the savage disparity, which has grown and grown, over the period that I have been alive,” he said.

“It’s because people are without work and cash welfare without work and cash welfare without work has obvious, typical, predictable results all over the world.” 

‘Disingenuous’ claim

Many Yindjibarndi people live in the town of Roebourne, which has seen debates about alcohol related harms similar to the Alice Springs situation.

However, Yindjibarndi Aboriginal Corporation chief executive Michael Woodley said Mr Forrest’s position was “disingenuous” and said his people deserve compensation.

He said social problems were linked to disadvantage due to the ongoing effects of colonisation, not mining royalties and welfare payments.

“There’s a trend with what’s happened historically to Aboriginal people, we’ve had a lack of opportunity and equality,” he said.

“Having the right to live a happy and equal, balanced life … has nothing to do with money and nothing to with mining companies.

The case is before the court, which has approved some hearings to be heard on country.

Mr Woodley said hearings had been scheduled for the remote Pilbara in August.

Fortescue said it has seven other native title agreements with other traditional owner groups which are working well.

Climate deniers ‘f*** off’

Mr Forrest also pulled no punches on what he thought about climate change denying politicians.

The billionaire was expanding FMG into a renewable energy firm, developing projects in areas including green hydrogen, solar power, geothermal, wind and hydropower.

While discussing FMG’s half-year profit results on the conference call, Mr Forrest had choice words for politicians who didn’t believe in global warming.

“People who do not understand the grave risk of climate change should not be in any position of influence, and if they exploit those who are trying to work against climate change, then history will judge them very, very badly,” he said. 

“They should be nowhere near having any responsibility whatsoever.”

The comments were in response to a question from Australian Financial Review mining reporter Peter Ker about the Federal Greens threatening to block Labor’s safeguard mechanism reform legislation, which is aimed at reducing carbon emissions from heavy industry and the resources sector. 

Mr Forrest went on to say it was crucial for governments to do more to mitigate global warming.

“Every legislator in the world should bring themselves up to speed on the science and act accordingly,” he said. 

“And I’m urging governments all over the world, wherever I go.

Rising costs and a fall in iron ore prices saw FMG’s after tax profit tumble over the last six months of 2022.

Net profit fell 15 per cent, to $US2.37 billion (3.42 billion) amid lower prices, a rising wage bills, and higher materials and energy costs. 

That was despite record shipments of iron ore of 96.9 millions tonnes for the half year.