Source: Reuters                        Date: 09 June, 2011

Rio Tinto, the world's second biggest iron ore miner, has agreed to pay what could be more than USD2 billion over 40 years to traditional landowners in Western Australia in return for access to their lands for its growth plans. The agreement, which covers 71,000 sq km, or an area the size of Ireland, smoothes the way for Rio's plans to expand iron ore production by 50 percent to 333 million tons a year by 2015 at a cost of USD11 billion.

Rio has said it signed land use partnerships with five Aboriginal Councils and expected to seal deals with four remaining communities where its mining or infrastructure operations are. It will pay an undisclosed fraction of a percentage of iron ore sales from new mines to the landowners in return for consent for all mine, rail and port developments on their land, Rio said. "We've ensured this is linked to our future prosperity. As new mines come on, traditional owners are beneficiaries," Ms. Janina Gawler, Rio Tinto's chief negotiator with the Aboriginal Councils, said. Newspapers estimated the communities could earn several billion dollars over 40 years.

Rio's side of the agreement includes ensuring that 14 percent of its workers are Aboriginal, up from 8 percent today, 14 percent of its contracts are with local Aboriginal businesses, and it meets training and scholarship targets.