Sunday, 29 March 2026

Formidable Challenges Part One: The Commonwealth approvals process for the Winchelsea mine

 

O, what may man within him hide, though angel on the outward side!

Measure for Measure, Act two, Scene four

 

Under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA), Land Councils whose primary statutory responsibility is to protect the interests of Traditional owners, have responsibility for managing negotiations over consent and the terms of any mining. Additionally, Ministers have explicit responsibility to approve key elements of any negotiated arrangements in addition to their overarching responsibility to ensure accountability for agencies within their portfolio to the Parliament and thus the public.

The NIAA has now released in accordance with the Freedom of Information Act 1982 (FOI Act) (link here) an updated version of a request for documents related to approvals by Commonwealth ministers under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA) related to the proposed manganese mine on Akwamburrkba (Winchelsea Island) by Winchelsea Mining. The initial tranche of documents was released on 24 December 2025, and following a request for an Internal Review, an updated tranche of documents has recently been released. The documents released after the Internal Review are available on the NIAA FOI log and listed under FOI reference number FOI/2526/013IR.

Three documents within the scope of the initial request but not assessed in the initial release process have also been released under a separate FOI request (link here) and are available on the NIAA FOI Log under reference number FOI/2526/031.

The analysis below and the following post amalgamates both sets of documents. References to documents in the first tranche are identified as Document A#, and those in the second tranche as Document B#.

The released documents provide a comprehensive, but perhaps still incomplete account of the Commonwealth approval processes related to the fact that the proposed mine is on Aboriginal land which comes within the ambit of the Anindilyakwa Land Council based on Groote Eylandt in the NT.

This post comprises Part One of an analysis of the documents released under FOI and constructs a summary chronology of the salient events related to the Commonwealth side of the approval processes related to the proposal for the establishment of the proposed Winchelsea mine. A second post to follow will focus on analysing the major implications arising from the release of these documents, particularly focussing on the complex issues related to potential conflict of interest arising from the highly unusual governance structures adopted by the ALC in relation to the proposed mine.

Winchelsea Approval Summary Chronology

Ø  On 10 October 2017, the ALC wrote to Minister Scullion and NT Resources Minister Vowles updating them on the proposed Winchelsea project. This letter was not identified by NIAA in their FOI searches and thus is yet to be released. It is unclear whether this correspondence dealt with the issue of the proposed dual roles of the ALC Chair and CEO. This correspondence is mentioned in Document B1 at para 22 of Attachment B.

Ø  On 15 August 2018, the ALC wrote (in a letter jointly signed by Chair Tony Wurramarrba and ALC CEO Mark Hewitt) to the Minister to provide a further update (refer Document B1 Attachment B). This correspondence is important as it outlines for the first time (based on currently available information) the proposal for the ALC Chair and CEO to undertake dual roles within both the ALC and Winchelsea Mining. It also mentions a shareholders agreement between AAAC, Aus China and somewhat strangely Winchelsea Mining in its own right (at this point informally controlled by its two ALC associated Directors) and the existence within that agreement of a ‘fall back provision’ which deals with the possibility that AAAC equity in Winchelsea Mining may be reduced in the future.

Ø  On 6 September 2018, the ALC provided a further update to Minister Scullion (again jointly signed). Refer Document B1 Attachment D. This correspondence outlines in some detail the steps taken to mitigate the impact of the potential conflicts of interest arsing from the dual roles of the ALC Chair and CEO. The letter mentions the involvement of Melbourne law firm Arnold Bloch Liebler (ABL) and mentions the recommendations of the Independent Chair of the ALC Audit Committee. In neither case was there any reference to potential conflicts of interest which may have related to the consultancy work of either ABL or Enmark (the accounting firm owned by the Audit Committee Chair). Both these firms have been engaged by the ALC and/or ALC associated corporations in receipt of section 64(3) payments beyond their advice here. The accuracy of the Audit Committee Chair’s advice to the ALC is questionable (see para 16 (d)).

Ø  On 13 September 2018 the ALC wrote to Minister Scullion, NT Minister for Resources Ken Vowles, and Mr Dongfang Yu, Co-CEO of Winchelsea Mining notifying them that the Land Council had on 10 September consented to the grant of the relevant Exploration Licence under s.42 of the ALRA. Refer to Document A2.

Ø  On 18 September 2018, PMC provided a brief to Minister Scullion recommending he note the information provided by the ALC in the two previous letters and providing a draft reply which recommended he seek further information related to the remuneration of Mr Wurramarrba and Mr Hewitt related to their dual roles in the ALC and Winchelsea Mining. (see paragraph 9). As the released document is unsigned, it is unclear if the Minister noted the brief and sent the letter; he may have amended the letter (which in any case has not yet been released by NIAA). Refer Document B1.

Ø  On 12 October 2018, Minister Scullion consented to the grant of an Exploration License to Winchelsea Mining and approved the ALC entering into the Winchelsea Island Exploration Agreement. In doing so he explicitly agreed that he was satisfied that the ALC had complied with its statutory obligations under the ALRA. Documents A1 to A5 refer.

Ø  On 14 July 2020, the CEO of the NT Department of Primary Industry and Resources wrote to the Minister Wyatt supporting the Winchelsea project and mentioning the desire of AusChina International (then holding 40 percent ownership in Winchelsea Mining) to divest their shares in the joint venture, thus providing in his words ‘a significant opportunity for AAAC [the holders of 60 percent equity in Winchelsea Mining] to significantly increase their investment should they be able to access appropriate financing arrangements’. Document A6 refers.

Ø  On 16 April 2021, Mr Hewitt as CEO of Winchelsea Mining wrote to Minister Wyatt and the NT Minister for Mining regarding the nature of proposed works for the mine. Document A7 refers.

Ø  On 13 May 2021, NT Minister for Mining and Industry, Nicole Manison wrote to Minister Wyatt confirming that she had considered (under delegation from the Commonwealth) the proposal for the grant of a mining lease and as it was consistent with the previously approved Exploration License, she was required by the provisions of ALRA to grant the lease. She added a handwritten annotation: ‘A very exciting project!’ Refer Document B2 Attachment B.

Ø  On 18 June 2021, NIAA provided a brief to Minister Wyatt recommending he confirm that the national interest provision of the ALRA mining regime does not apply to the Winchelsea proposal, thus clearing the final hurdle for the grant of a mining lease by NT Minister Manison. Document B2.

Ø  On 30 June 2021, Minister Wyatt provided his consent under s47 of the ALRA. This is a precondition to the consideration of the Mining Agreement. The substantive content of the determinations is not evident from the documents released. Document A8 refers.

Ø  On 30 June 2021, an official of the ALC (either the then Chair or the Mining Manager; the name has been redacted) emailed the Minister requesting his approval of the Winchelsea Island Mining Agreement. Documents A9 and A10 refer.

Ø  On 20 July 2021, the NIAA briefed Minister Wyatt recommending he agree that he is satisfied that the ALC has complied with its statutory obligations in seeking consent and approval for the grant of the relevant Mineral Lease to Winchelsea Mining and providing consent to the ALC to enter into the related Mining Agreement.

Ø  On 2 August 2021, Minister Wyatt accepted the NIAA recommendations that the ALC had complied with its statutory obligations and that he should consent to the grant of the Mineral Lease and to the ALC entering into the Mining Agreement. Document B3 refers. Minister Wyatt also wrote to the ALC (presumably the Chair, but perhaps the Mining Manager) and the NT Mining Minister advising his approval of the proposed Mining Agreement. He also wrote to Mr Hewitt, a Director of Winchelsea Mining advising Winchelsea that he has given his consent to the mining agreement. Documents A11, A12 and A13 refer.

Ø  On 2 November 2022, a representative of CDM Smith, an environmental consulting firm wrote to Minister Burney updating her on the ongoing consultations with relevant stakeholders regarding the preparation of the EIS for the project. Documents A14 and A15 refer.

Ø  On 28 February 2023, Minister Burney responded to CDM Smith noting the consultation process, and noting that royalties for the project are proposed to replace royalties from the existing GEMCO mine which is expected to cease operations within five years. She also noted that AAAC ‘ownership of the mine’ [sic: of the joint venture company Winchelsea Mining] has increased to 70 percent. Document A16 refers.

Ø  On 23 August 2024 the Chair of the ALC wrote to Minister McCarthy seeking additional funding for a range of projects due to the cessation of s64(3) payments arising from the impact of Cyclone Megan on GEMCO operations. Document A17 refers.

Ø  On 30 January 2025 [five months later!] the Minister responded to the ALC Chair politely refusing her request and redirecting her elsewhere. Document A18 refers.

 

Reflections on transparency and accountability

I am cognisant that very few readers will have the time or inclination to read the chronology outlined above and cross reference or access the actual documents. I have included it nevertheless to demonstrate the significance and extensiveness of the engagement between the ALC and the Commonwealth (PMC and NIAA). Yet over that period there were no ministerial media releases by the Commonwealth related to the development of the mine. There was a highly curated public relations narrative on the ALC web site, but minimal attempt to provide the transparency one might expect from a Commonwealth agency. There remain unanswered questions.

The transparency and accountability issues related to the proposed mine arising from the direct involvement of Commonwealth Ministers over the period from 2017 to the present, and which are embedded and identified in the documents released under FOI discussed in this post have not previously been disclosed. Moreover, they are extremely unlikely to have seen the light of day except for the existence of the FOI Act. The Executive dominance over the Parliament and an apparent consensus shared by both ALP and LNP that any exposure of the issues involved would be politically harmful has meant that the Senate Estimates process since 2017 and particularly since 2023 when the ANAO performance report on the ALC was tabled has failed to consistently ask and follow up the hard questions (link here).

The ALC Annual Reports which are required by the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and PGPA Rule 2014 identify a range of high-level requirements for Annual Reports including audited financial statements, annual performance statements, a significant issues report, and governance structures. Agency Annual Reports are provided to and approved by the portfolio minister for tabling in Parliament. Yet over the period since 2017, neither the portfolio agencies (PMC and NIAA) nor any portfolio minister ever took action to ensure core information regarding the potential conflicts embedded in the dual employment relationships of the ALC Chair and CEO were included in the ALC Annual Reports notwithstanding that they were all aware of the existence of these issues.

Along with ensuring a wet blanket was placed over successive Senate Estimates discussions and failing to ensure that ALC Annual reports were fully transparent, the current ALP Government has pursued a determined and ongoing strategy to distract and obscure attention related to the accountability issues on Groote. This has been aimed at downplaying the knowledge and involvement of Commonwealth Ministers and their agencies in facilitating the development of the Winchelsea Mining proposal and in oversighting the (mis)use of section 64(3) funds intended to benefit Aboriginal people on Groote for mine related purposes. This strategy included the refusal to investigate the underlying issues raised in the 2023 ANAO performance audit of the ALC (link here) instead engaging a consultancy firm to review the implementation of the ANAO recommendations. As I have previously pointed out, that review was far from independent despite NAIA claims to the contrary (link here).

Following a media story in the SMH and Age by investigative reporter Nick McKenzie sourced to an ALC whistle-blower which alleged that the former CEO was seeking to be granted up to ten percent equity in Winchelsea Mining by AAAC, the NIAA (presumably with the Minister’s approval) referred the matter to the National Anti-Corruption Commmission. The NIAA then (again almost certainly with the knowledge of the Minister or her Office) directly injected itself into internal ALC affairs and played a prime role in the meeting of the ALC (without any ALC staff present) where the ALC Board terminated the former CEO Mr Hewitt (link here). One might surmise that the foundation is being laid to place the primary blame on the former CEO for any maladministration that may be found to have occurred by the NACC. Such a framing would in my view be deeply dishonest and would be extremely problematic insofar as it would necessarily leave deeper systemic accountability shortcomings (that apply well beyond the ALC) unaddressed.

While the documents released under FOI reveal the extent to which potential conflicts of interest were embedded within the ALC and its associated corporations funded under s64(3) of ALRA, they do not shed light on the deeper reasons governments since 2017 have been determined to turn a blind eye. That is a matter that will hopefully emerge from the shadows over the course of the next year or so.

In the second part of this post, I seek to explore in greater detail the extent to which the potential conflicts of interest embedded within the processes described the documents released under FOI were created and granted legitimacy.

 

29 March 2026

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