A binding consultation and cooperation agreement has been signed with the Wagyl Kaip Southern Noongar Aboriginal Corporation, the Indigenous Land Use Agreement holder for the Wagyl Kaip Southern Noongar region.
Under that structure, they represent the Wagyl Kaip Southern Noongar People (WKSNAC) as part of the Noongar Native Title Settlement.
The agreement establishes a formal framework for ongoing consultation and cooperation between Ausgold (ASX:AUC) and the WKSNAC to support the development, construction and operation of the KGP, the company said in an ASX statement on Thursday.
That will deliver long-term benefits for both, providing a formal pathway for cultural heritage management and stakeholder engagement.
“This agreement represents an important and very positive milestone for the Katanning Gold Project and reflects our commitment to working collaboratively with the Wagyl Kaip Southern Noongar Aboriginal People,” Ausgold executive chairman John Dorward said.
“Establishing a clear and respectful framework for managing important matters such as cultural heritage and community engagement is critical as we progress the Katanning Gold Project towards development.
“It is through collaborative partnerships like this that we seek to ensure that the Katanning Gold Project will deliver tangible long-term benefits for all stakeholders.”
The WKSNAC represents a number of language groups across the Great Southern region of WA, which is home to the KGP, including the Menang, Goreng, Keneang, Wilman and Wudjari.
Ausgold says the execution of the agreement is an important milestone for the development, “providing a clear and structured pathway for a collaborative approach to cultural heritage management, workforce participation and training opportunities and funding support to deliver long-term positive outcomes for the Noongar People of the Wagyl Kaip Southern Noongar region as the Project advances towards development.”
Under the agreement, WKSNAC will support the miner and advise on the development and implementation of a comprehensive cultural heritage management plan, ensuring proper identification, management and if possible, preservation of Aboriginal sites and objects.
It will also include the establishment of a Cultural Liaison Committee to foster formal ongoing cultural engagement and consultation, as well as employment, contracting and training opportunities.
Ausgold says it will take reasonable endeavours to achieve a target rate of 5% Wagyl Kaip Southern Noongar People workforce participation by the end of its third year of operations, and once gold production starts, the firm will make quarterly contributions to in part fund vocational training and educational initiatives.
The idea is to provide employment pathways for members of the local community through the operation of the mine.
A definitive feasibility study last year estimated the drive-in drive-out operations would peak at 350 full time roles after an 18-month development phase that would require 250 construction staff.
The mine is expected to be a key source of economic diversification in the region, known for its agricultural output and abattoir, and fills a void after the closure of the Ravensthorpe nickel mine and Mt Cattlin lithium mine further down the south coast.
The KGP is expected to produce 1.22Moz from open pits over its first 10 years and 143,000ozpa in its first four, delivering an estimated $2.3bn in post-tax cashflow at an assumed gold price of A$6400/oz – a level now firmly in the rear-view mirror.
It’s expected to have regional, state-wide and national benefits as well, contributing $700m in wage and salary payments over its life, $42m in WA payroll tax, $618m in federal company tax and $131m in WA gold royalties.
The agreement with the WKSNAC is the latest derisking step for the project, 275km south-east of Perth, after a freehold land purchase last year ended a question mark over whether Ausgold could access a material proportion of its resource.
