Jabiru Social Impact Assessment November 2016 April 2017
Acknowledgement of Traditional Custodians The operations of Energy Resources of Australia Ltd are located on Aboriginal land and are surrounded by, but separate from, Kakadu National Park. Energy Resources of Australia Ltd respectfully acknowledges the Mirarr, Traditional Custodians of the land on which the Ranger mine is situated. 2
Important notice In September 2016, Energy Resources of Australia Pty Limited (ERA) commissioned Jacobs Group (Australia) Pty Limited (Jacobs) to undertake a Social Impact Assessment to assess the impacts associated with meeting its legal obligations regarding rehabilitation of the township of Jabiru. The sole purpose of Jacobs report regarding the Social Impact Assessment (the Report) and the associated services performed by Jacobs was to document the Social Impact Assessment in accordance with a scope of services set out in a contract between ERA and Jacobs. This presentation, prepared by ERA, outlines some of the key findings of the Report. It has not been independently verified by Jacobs or any other person nor does it purport to be comprehensive or to contain all relevant information. In preparing the Report, Jacobs relied on, and presumed accurate, information (or confirmation of the absence thereof) provided by ERA and/or from other sources. Except as otherwise stated in the Report or this presentation, Jacobs did not attempt to verify the accuracy or completeness of any such information. If the information is subsequently determined to be false, inaccurate or incomplete, then it is possible that observations and conclusions as expressed in the Report or this presentation may change. In furnishing this presentation, ERA and Jacobs undertake no obligation to provide any additional information or to update this presentation or any additional information or to correct any inaccuracies which may become apparent. Jacobs derived the data in the Report from information sourced from ERA and/or available in the public domain at the time or times outlined in the Report and/or this presentation. The passage of time, manifestation of latent conditions or impacts of future events may require further examination of the project and subsequent data analysis, and re-evaluation of the data, findings, observations and conclusions expressed in the Report and/or this presentation. Jacobs prepared the Report in accordance with the usual care and thoroughness of the consulting profession, for the sole purpose described above and by reference to applicable standards, guidelines, procedures and practices at the date of issue of the Report. However, no warranty or guarantee, whether expressed or implied, is made as to the data, observations and findings expressed in the Report or this presentation, to the extent permitted by law. The Report was prepared by Jacobs on behalf of, and for the exclusive use of, ERA, and remains subject to the provisions of the contract between Jacobs and ERA. This presentation is being made available for information purposes only and is provided subject to the same limitations as the Report as described above. Neither ERA nor Jacobs has agreed to the further disclosure of any information regarding the Social Impact Assessment, including for the avoidance of doubt, the disclosure of the Report, which remains confidential. Save for information included in this presentation, the contents of the Report (and any discussions regarding them) remain confidential and may not be distributed, published, reproduced or disclosed without the prior written consent of ERA and Jacobs. Neither Jacobs nor ERA accepts any liability or responsibility whatsoever for, or in respect of, any use of, or reliance upon, the Report or this presentation. 3
Background ERA s Ranger mine is located eight kilometres east of Jabiru and 260 kilometres east of Darwin, in Australia s Northern Territory. The town of Jabiru was built in 1982 as a residential and service hub to support mining operations in the region. The town was established under a Head Lease from the Commonwealth s Director of National Parks. Under the Head Lease and associated agreements, ERA has a range of rehabilitation obligations in Jabiru which it needs to prepare for ahead of the Head Lease expiring. The Jabiru Head Lease expires on 30 June 2021. The Commonwealth Government, Northern Territory Government and Traditional Owner representatives have commenced discussions on a future plan for the town of Jabiru beyond the lease expiry in 2021. 4
Why conduct a Social Impact Assessment? The aim of the Social Impact Assessment undertaken by ERA was to: Inform stakeholders about ERA s legal rehabilitation obligations under the town Head Lease and associated agreements; Establish a socio-economic baseline and identify the potential impacts of ERA s rehabilitation obligations on the town, its residents and visitors; and Use the findings to propose mitigation opportunities and support planning for a smooth town transition. The Social Impact Assessment was not about developing a plan for Jabiru beyond 2021. A separate process involving the Commonwealth Government, Northern Territory Government and Traditional Owner representatives regarding a future plan for the town has commenced. Negotiations are also underway regarding a new township lease. The outcomes of these processes will have a bearing on ERA s rehabilitation obligations but were not known at the time of the Social Impact Assessment. 5
How was the Social Impact Assessment conducted? ERA engaged consulting firm Jacobs to complete the study The Social Impact Assessment took place from November 2016 to April 2017 Phased approach: Completed situational analysis and research including 38 stakeholder briefings attended by a total of 295 people; Undertook consultation with key organisations and service providers (15 interviews); Developed and conducted a community and business survey; and Completed an assessment of responses to identify potential impacts. 6
What are ERA s current rehabilitation obligations? ERA s legal obligations to rehabilitate land in Jabiru are outlined in the current town Head Lease, ERA s sub-leases and the Cost Sharing Agreement. ERA s current obligations may extend to rehabilitation of: The town landscape; Service infrastructure (water supply, electricity, sewage, storm water and roads); Housing and accommodation; Retail and commercial premises; and Other social amenities. ERA s rehabilitation obligations may change depending on the outcome of the discussions between the Northern Territory and Commonwealth Governments and the Traditional Owner representatives currently underway to determine a future for Jabiru. 7
What impacts were identified in the Social Impact Assessment? The Social Impact Assessment provides data on the potential socio-economic impacts of ERA s current rehabilitation obligations on the town, its residents and visitors. A range of impacts were identified, including: Displacement of Jabiru residents; Significant reduction in job opportunities and retraction in size of the regional economy; Loss of Jabiru as a regional hub providing services such as health, education and retail; Loss of critical infrastructure including electricity and water supply; and Closure of Jabiru Airport. Some impacts are already occurring: Anxiety due to uncertainty about the town future; and Inability to plan and make decisions. 8
What can be done to mitigate the impacts? The impacts of the town Head Lease expiry and ERA s current rehabilitation obligations would be avoided or diminished by reaching agreement on a plan for the future of Jabiru. This process is underway: Discussions about future town scenarios are progressing through the Jabiru Stakeholder Planning Group, which includes the Gundjeihmi Aboriginal Corporation, Northern Land Council, Commonwealth Government, Northern Territory Government and ERA. Government and Mirarr Traditional Owner representatives are engaged in negotiations about a future township lease which is important to the future plan for the town. Early decision-making will reduce the likelihood and extent of impacts associated with uncertainty. Once the future plan for Jabiru is agreed, preparation and implementation of a transition plan will help minimise impacts. Provide regular public communication on progress about planning for the future of Jabiru and opportunities to be involved in the planning process. 9
What are the next steps? Progress has been made with regard to the future of Jabiru since the conduct of the Social Impact Assessment report. The Jabiru Stakeholder Planning Group will continue to develop a plan for the future of Jabiru. As part of this ongoing process, the Northern Territory Government has commissioned a number of studies currently being undertaken in Jabiru. Government and Traditional Owner representatives will continue negotiations to agree a new township lease for Jabiru. Information gathered during the Social Impact Assessment process will be used to develop an ERA plan that supports a smooth transition for Jabiru. ERA s planning based on current rehabilitation obligations will continue until such time as a plan for the future of the town is agreed by stakeholders which varies these existing obligations. ERA s immediate focus is on clarifying these rehabilitation obligations by working closely with Jabiru stakeholders, including the Mirarr Traditional Owners. 10
Conclusion Under the Head Lease and associated agreements, ERA has rehabilitation obligations in Jabiru which need to be met ahead of the Head Lease expiring on 30 June 2021. In the absence of an agreed plan for the town beyond 2021, ERA has commenced planning to meet its existing rehabilitation obligations. The Social Impact Assessment conducted by ERA identified a range of socio-economic impacts associated with rehabilitation of the town, including the displacement of Jabiru residents and a reduction in regional economic activity, services and infrastructure. The Social Impact Assessment found that certain impacts were already resulting from the current uncertainty. There is broad community support, including from Traditional Owners, for Jabiru to have a future beyond 2021. Almost no one consulted in the Social Impact Assessment process considered the full rehabilitation of Jabiru to be a desirable outcome. The Commonwealth Government, Northern Territory Government, Traditional Owner representatives and ERA are working together to develop a plan for the future of Jabiru. 11
Further information Visit the ERA website: Follow us on Twitter: @ERARangerMine Telephone us on: +61 (0) 8 8924 3500 Email us: jabirusia@era.riotinto.com 12