Iron Ore (Goldsworthy-Nimingarra) Agreement Act 1972

• The corporate successors to the original Joint Venturers (those holding the underlying mining tenements and running the iron ore operations in the original agreement areas).
• The State of Western Australia (represented through the responsible Minister), which receives royalties and has ongoing approval, amendment, and supervisory rights.
• Native title holders of land within or adjacent to the agreement areas: the Native Title Act 1993 (Cth) and WA native title laws apply to all activities under the Agreement.
• Land managers and occupiers of Crown land or pastoral leases within or adjacent to the mining areas.
• Contractors, infrastructure users, and community members in areas served by the Joint Venturers' railway, townsite, and port facilities.

Joint Venturer obligations include:

• Carrying out geological, geophysical, and feasibility investigations at their expense and reporting quarterly to the State (clause 5).
• Submitting detailed proposals for all construction and infrastructure to the Minister within required timeframes (clause 6).
• Obtaining the Minister's approval before commencing construction on approved proposals (clause 7).
• Paying royalties on all ore shipped, sold, or locally used (clause 33).
• Complying with laws relating to native title and the Aboriginal Heritage Act 1972 (WA) (as inserted by the Second Variation Agreement).
• Not doing anything contrary to lawful native title obligations or requirements imposed by the State or Commonwealth.

State obligations include:

• Granting rights of occupancy over mining area "D" areas (clause 4) and then, on satisfaction of feasibility criteria, granting mineral leases under clause 9.
• Allowing the Joint Venturers access to Crown land to the extent reasonably necessary (clause 3(b)).
• Considering proposals in good faith, giving reasons for alterations or conditions, and not imposing unreasonable alterations (clause 7).
• Providing, or facilitating, access to port and wharf facilities.

The Minister holds a range of discretionary powers under the Agreement:

• Approving or varying the Joint Venturers' detailed proposals for infrastructure and mining operations (clause 7). The Minister may make reasonable alterations and impose conditions having regard to overall development and use of facilities by others.
• Determining whether costs and charges are properly incurred for the purposes of the f.o.b. revenue definition (Schedule 1 definitions).
• Granting extensions of time for making ore contracts (clause 6(3)).
• Approving associated companies for the purposes of the Agreement.

Disputes about the reasonableness of Ministerial alterations or conditions may be referred to arbitration (clause 7(2)). If arbitration decides against the Joint Venturers, the Agreement may cease unless they satisfy the Minister within three months.

Section 7 of the Act confers a specific statutory power on the State to act in accordance with clause 16C(9)(a) of the Agreement (as varied by the Third Variation Agreement). This is the provision authorising the State to take certain actions within the Goldsworthy-Nimingarra framework under the integrated arrangement.

The Agreement does not contain conventional penalty provisions. Enforcement operates through:

• Termination: the Agreement may cease and determine if the Joint Venturers fail to satisfy the Minister's reasonable requirements following arbitration (clause 7(2)).
• Royalty arrears: failure to pay royalties when due constitutes a breach enforceable by the State through ordinary contract and statute.
• Mineral lease conditions: the mineral leases granted under the Agreement may be subject to forfeiture provisions under the Mining Act (as referenced in clause 9), which would extinguish the Joint Venturers' exclusive rights.
• Aboriginal Heritage Act 1972 (WA): breaches of that Act carry their own penalties and enforcement regime.

Original Agreement obligations (now largely historical): The Joint Venturers were required to commence geological investigations forthwith (clause 5) and submit detailed proposals by 31 December 1972 (or extended date). The commencement date was the date specified under clause 7(6) when the Minister certified satisfaction with the proposals and evidence of ore contracts and finance.

Mineral lease grant and renewal: Mineral leases are granted under clause 9. On grant, the rights of occupancy automatically expire. Renewals are addressed within the mineral lease terms under the Mining Act as applicable.

Royalty payment: Royalties under clause 33 are computed and paid on each shipment or sale. The f.o.b. revenue computation uses the exchange rate prevailing on the date of receipt of the purchase price.

Royalty rate changes under section 5: The increased royalty rates (5.625% and 5%) under section 5 of the Act apply from the commencement of the Iron Ore Agreements Legislation Amendment Act 2010 Part 2 and do not apply retrospectively to any period before that commencement (section 5(4)).

Native title compliance: Any future variation to the Agreement, or any act under the Agreement, must comply with laws relating to native title. The definition of those laws specifically includes the Native Title Act 1993 (Cth) as applicable from time to time, so native title requirements evolve with that legislation.

The Agreement interacts with a wide range of WA and Commonwealth statutes:

• Mining Act 1904 (WA) (now the Mining Act 1978 (WA)): The mineral lease regime, rights of occupancy, and renewal provisions operate under the Mining Act. Section 3(4) of the Act expressly disapplied the Mining Act 1904 section 277(5) to renewals under the Agreement, ensuring continued operation without restriction.
• Public Works Act 1902 (WA): Section 3(3) disapplied section 96 of that Act to railways constructed under the Agreement.
• Land Act 1933 (WA): Special leases and licences for land access are granted under the Land Act. The Agreement defines Land Act to include any replacement legislation.
• Government Agreements Act 1979 (WA): The Variation Agreements are stated to operate notwithstanding any other Act or law but the Government Agreements Act is specifically preserved (sections 4(3), 6(3), 8(3)).
• Native Title Act 1993 (Cth): Compliance with native title laws, including this Act, is a requirement inserted by the Second Variation Agreement.
• Aboriginal Heritage Act 1972 (WA): The Joint Venturers are expressly not exempt from this Act (inserted by Second Variation Agreement).

Four strata of amendments must be read together: The operative agreement terms cannot be understood from Schedule 1 alone. Section 5 varies specific royalty rates in clause 33. The First, Second, and Third Variation Agreements in Schedules 2, 3, and 4 make other amendments. A reader who relies only on the original Schedule 1 will miss significant changes, including the native title compliance obligations and the updated royalty rates.

Royalty rate change is not retrospective: Section 5(4) explicitly states that the increased royalty rates (5.625% and 5%) do not apply to any period before the commencement of the Iron Ore Agreements Legislation Amendment Act 2010 Part 2. Disputes about pre-commencement royalties use the original rates.

Native title determinations affect the agreement area: Native title determinations by the Federal Court have identified native title holders with rights over land within or adjacent to the Goldsworthy-Nimingarra agreement area (for example, the Nyiyaparli People). The Agreement's obligation to comply with native title laws means the Joint Venturers must ensure their ongoing operations meet the requirements of those determinations and future native title dealings.

Government Agreements Act 1979 interaction: The Variation Agreements are expressed to operate despite any other Act or law but are subject to the Government Agreements Act. The significance of this is that the Government Agreements Act procedures for variation and amendment apply alongside the Agreement's own variation procedures.

Scenario 1: Royalty dispute on f.o.b. revenue. The Joint Venturers and the State disagree on whether a particular shipping agency charge is deductible in computing f.o.b. revenue. The definition of f.o.b. revenue allows the Minister to determine whether a cost is "properly incurred." If the Minister determines it is not deductible, the royalty base increases. The dispute may be referred to arbitration under the Agreement's dispute resolution provisions.

Scenario 2: Future mining activity and native title. The Joint Venturers propose a new drilling programme in a part of mining area "E" that falls within a native title determination area. The Agreement requires compliance with the Native Title Act 1993 (Cth), so the Joint Venturers must consider whether the proposed activity is a future act under the NTA and, if so, follow the required procedures (including right to negotiate or notification under the ILUA if applicable) before commencing.

Scenario 3: Amendment of royalty terms. The State proposes a further increase to royalty rates beyond those in section 5. Under the Agreement's variation provisions, any amendment requires agreement of both parties. If disputed, arbitration applies. Section 5 demonstrates that the WA Parliament can also amend the Act itself to vary specific royalty provisions, provided the amendment is consistent with the Agreement's overall structure.