By Alex MacDonald
LONDON--South Africa-based Gold Fields Ltd. (GFI) said on Friday
it would appeal an Australian court decision that ruled in favor of
an aboriginal community over native land rights at a mine.
The Ngadju People filed the claim in January this year, arguing
that a number of tenement rights regranted to Gold Fields' St. Ives
mine in western Australia in 2004 were invalid under the Native
Title Act.
Australia's Federal Court accepted the case in July and on
November 21 ruled in favor of the Ngadju people by outlining the
nature and extent of their native title rights. These refer to
rights and interests that Aboriginal people have to land and water
under law.
The legal action affects 210 of the 287 St Ives' allotments.
The Ngadju could potentially file for an injunction to suspend
mining operations at St. Ives but Gold Fields spokesman Sven
Lunsche said it is "extremely unlikely" that such an injunction
would be granted. The company expects to continue operating the
mine, pending the outcome of the appeal process.
"St Ives will vigorously pursue its appeal to the Full Federal
Court, and remains confident of a favourable outcome through this
process," Gold Fields said in a statement. The State of Western
Australia and other natural resource companies are also taking part
in the appeal process alongside Gold Fields.
Should Gold Fields fail to repeal the decision, it could settle
the dispute by striking a voluntary agreement with the Ngadju, Mr.
Lunsche said. Such agreements have historically included both a
lump sum and royalty payment. It could also involve other
commercial concessions, Mr. Lunsche added.
Gold Fields' shares were up 2.1% at 51.74 South African Rand at
around 0945 GMT.
The St. Ives mine produced 402,700 troy ounces of gold last
year, nearly a fifth of Gold Fields' total gold output of about 2.1
million ounces of gold.
-Write to Alex MacDonald at alex.macdonald@wsj.com
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