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Viewing cable 09PERTH51, KIMBERLEY GAS SPLITS INDIGENOUS GROUPS

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Reference ID Created Released Classification Origin
09PERTH51 2009-11-06 06:54 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Perth
VZCZCXRO0743
RR RUEHDT RUEHPB
DE RUEHPT #0051/01 3100654
ZNR UUUUU ZZH
R 060654Z NOV 09
FM AMCONSUL PERTH
TO RUEHC/SECSTATE WASHDC 0434
INFO RUEHBY/AMEMBASSY CANBERRA 0440
RUEHBN/AMCONSUL MELBOURNE 0328
RUEHPT/AMCONSUL PERTH 0466
RUEHDN/AMCONSUL SYDNEY 0332
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0019
RUEHKO/AMEMBASSY TOKYO 0019
RUEHUL/AMEMBASSY SEOUL 0015
RUEHJA/AMEMBASSY JAKARTA 0019
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS SECTION 01 OF 02 PERTH 000051 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB MONOSSON 
DOE FOR JEFF SKEER 
USDOC FOR 3132/USFCS/OIO/EAP/JRULAND 
USDOC FOR 4530/MAC/EAP/OPB/GPAINE 
 
E.O. 12958: N/A 
TAGS: ENRG EINV SENV AS
SUBJECT: KIMBERLEY GAS SPLITS INDIGENOUS GROUPS 
 
REF: A. A.  PERTH 40 
     B. B.  PERTH 42 
 
PERTH 00000051  001.2 OF 002 
 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. 
 
 
 
1.  (U) Summary:   Indigenous communities in Western Australia's 
northeast Kimberley region stand to gain significant 
socio-economic benefits from an estimated A$60 billion (US$54 
billion) worth of natural gas projects under consideration for 
the area.  Regional Indigenous leaders told us they are actively 
negotiating commercial benefits from Woodside and other 
companies looking to build an on-shore liquefied natural gas 
(LNG) facility.  They are also attempting to leverage improved 
social services from the federal government.  Traditional owners 
remain deeply concerned about the impact of major gas projects 
on Indigenous culture and practices.  These concerns are 
supported by international environmental groups, which have 
stepped up opposition to industrial development in this remote 
and pristine region.  The issue of Indigenous agreement by 
itself is unlikely to prevent major gas projects from going 
ahead, but is an increasingly significant factor in shaping the 
region's future. End Summary. 
 
 
 
Gas Projects Need Land, Marine Use 
 
 
 
2. (U)  During a visit to the Kimberley September 28 - October 
2, government and business representatives confirmed to the 
Consul General that Indigenous consent to use land and fishing 
grounds is a key issue for projects to proceed.  Almost a third 
of the total LNG projects targeted for northern Australia are 
located off the Kimberley coast, worth an estimated A$60 billion 
(US$54 billion)(ref A).  Key U.S. and OECD oil and gas 
companies, including Chevron, ExxonMobil, Apache, Shell, BHP 
Billiton, BP, Inpex, and Woodside, are actively exploring in the 
region, with projects at various stages of development. 
 
 
 
Strong Culture and Land Rights 
 
 
 
3. (SBU) While numerically small (some 17,000), Indigenous 
people make up half of the Kimberley population (compared to 4 
percent state-wide, and 3 percent nationally), retaining strong 
traditional customs and spiritual ties to the land.  Represented 
by the Kimberley Land Council (KLC), Indigenous communities have 
gained recognition of their traditional land ownership under 
Australia's Native Title legislation of 1992.  This includes the 
port town of Broome (the only feasible industrial supply base 
for the region), and the James Price Point area on the coast, 
where Woodside and the Western Australian (WA) state government 
have proposed an on-shore LNG processing hub.  (Note:  Native 
Title determinations enable traditional owners to consent and 
negotiate over use of land, but do not confer legal title to the 
land. End Note.) 
 
 
 
Split Views of Gas Projects 
 
 
 
4.  (SBU)  The KLC in April 2009 signed an ambitious preliminary 
agreement with Woodside and the WA state government agreeing to 
land and marine access for the proposed on-shore LNG hub at 
James Price Point 60 kilometers north of Broome in exchange for 
education, training, and other commercial benefits.  During our 
visit to the site in September, KLC leaders said they believe 
economic benefits from the gas developments should reach all 
Indigenous communities in the Kimberley, not just the local 
community that has Native Title recognition.  Faced with 
 
PERTH 00000051  002.2 OF 002 
 
 
opposition to the gas projects from some traditional owners over 
a mix of economic, environmental and spiritual issues, the KLC 
is seeking a profit-sharing arrangement to encourage buy-in from 
as many Kimberley communities as possible, according to senior 
WA government Indigenous affairs official Gary Hamley.  The KLC 
hopes to leverage this agreement to pressure the federal 
government (which is reassessing its model of service delivery 
to Indigenous communities (Septel))to provide a package of 
improved social services, like housing and education. 
 
 
 
Deep Concern From Indigenous Communities 
 
 
 
5.  (SBU) Many Indigenous communities remain deeply concerned 
that the gas developments will have a negative impact on 
traditional culture.  Several Indigenous elders commented on the 
"deep anxiety" among remote communities who feel pressured to 
consent in order to survive, but say they have little 
information, either from the KLC or other stakeholders, 
regarding the probable impact on their traditional way of life. 
KLC representatives have publicly stated they feel they are 
negotiating "with a gun to their heads," reflecting perceived 
pressure from business and government. 
 
 
 
International Focus on Environment 
 
 
 
6. (SBU) International environmental non-governmental 
organizations (ENGOs), including the World Wildlife Foundation 
and the Australian Wilderness Society, support Indigenous 
concerns and have stepped up their opposition to the gas 
developments.  One Indigenous community has teamed up with music 
celebrities like Missy Higgins to focus international attention 
on the "Save the Kimberley" campaign.  Local government 
officials told us that about 20 percent of residents actively 
oppose the developments, with some fearing that on-shore LNG 
processing will lead to broader industrial development that 
could include exporting uranium from the region.  A senior 
Chevron official from the Gorgon Gas project said corporate 
officials are watching ENGO activities in the Kimberley 
carefully because ENGOs have not yet focused attention on the 
massive Gorgon project, located further west(Ref B). 
 
 
 
Comment:  Gas Projects Likely, But When? 
 
 
 
7.  (SBU) There is growing acceptance in Australia that 
Indigenous communities should share in the economic growth 
associated with the exploitation of the nation's natural 
resources like gas.  Business and government confirmed that 
Indigenous issues are among the top three obstacles to overcome 
in developing Kimberley gas projects (the other two are 
environmental issues and the remote location of the off-shore 
reserves).  Indigenous concerns are more likely to prevent 
Kimberley gas projects from going forward than elsewhere in 
Australia, and have already influenced potential investors, such 
as Inpex (a major oil and gas company), to build an LNG 
processing plant in the Northern Territory instead of the 
Kimberley region, as was originally planned. 
CHERN