The agreement was executed with the Ngadjuri Adnyamathanha Wilyakali Native Title Aboriginal Corporation (NAWNTAC).
Signing of the agreement took place after a special sitting of the Federal Court in Orroroo last week.
This represents another major milestone on the path to the potential development of the Kalkaroo project as a major new copper-cobalt-gold mine.
Havilah’s new chairman Mark Stewart said: “The importance of the execution of this agreement cannot 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.”
Kalkaroo is about 500 kilometres northeast of Adelaide in proximity to a main highway, the transcontinental railway and the regional mining centre of Broken Hill.
Based on a 100 million tonne ore reserve independently estimated by RPMGlobal, it is the largest undeveloped open pit copper-gold deposit in Australia on a copper-equivalent ore reserve basis.
Kalkaroo ore reserves as at June 30, 2018.
At the Federal Court sitting, 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.
The agreement is a key requirement for the granting of a mining lease by the Department for Energy and Minerals (DEM) of South Australia.
It follows more than five years of patient negotiations and numerous meetings in good faith between representatives of the native title holders and Havilah.
Map showing the new NAWNTAC Native Title area in relation to Havilah’s tenements and projects.
EBITDA model accepted
Acceptance of the concept of an EBITDA model, 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.
This 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 important non-financial benefits such as employment, training and business development opportunities for the native title holders over the life of the mine.
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 goodwill of the native title holder groups and their legal advisors over an extended period of time.”
Following lodgment 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.