After five years of negotiations, Havilah Resources (ASX: HAV) has signed a Native Title Mining Agreement for its Kalkaroo copper-cobalt-gold project, northeast of Adelaide in South Australia.
Kalkaroo is believed to be the largest undeveloped open pit copper-gold deposit in Australia on a copper-equivalent ore reserve basis. The signing of the new deal increases Havilah's chances of being granted a mining lease over the project area by the regional Department for Energy and Minerals. "The importance of the execution of this agreement cannot be overstated and represents a massive leap forward" -Chairman
"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," the company's recently appointed chairman, Mark Stewart, said in a media statement.
The agreement was executed between the Ngadjuri Adnyamathanha Wilyakali Native Title Aboriginal Corporation (NAWNTAC) and Havilah. NAWNTAC is a corporate entity that jointly represents the interests of the Adnyamathanha, Ngadjuri and Wilyakali people.
According to the Dulwich-based miner, the Indigenous group accepted the concept of an EBITDA or earnings before interest, tax, depreciation, and amortization, which is a profit-based compensation payment rather than an off-the-top revenue-based royalty payment.
The mechanism, Havilah communique reads, assists the company in times of low profits and allows NAWNTAC to share fully in times of high profitability of any future mining operations. It also considers employment, training, and business development opportunities for the native title holders over the life of the mine.
Kalkaroo is expected to be operative for at least 14 years. Production is forecasted to average 4,000 tonnes of copper, 100,000 ounces of gold and 1,000 tonnes of cobalt per year.