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Fortescue CEO Nev Power says likely to appeal native title decision

Fortescue Metal Group's signal that it will appeal a judgment granting native title is "disappointing" say the local people who won the landmark case.

The Federal Court ruled on Thursday that the Yindjibarndi had exclusive rights over Pilbara land where Fortescue operates the Solomon iron ore mine.

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Senior Yindjibarndi lawman Michael Woodley signalled immediately that the people would seek compensation but on Friday morning Fortescue suggested it would look to appeal the decision.

"We're looking at that now and I think we're likely to appeal," FMG chief executive Neville Power told ABC radio.

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"It's a very unusual decision in that the judge found exclusive native title possession on this land, which we think is unlikely to be the case, so we will be looking at it."

Mr Woodley said that move was disappointing and queried why Fortescue would appeal when it has insisted the decision would have no impact on its operations or financial performance.

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"We are disappointed that they have taken this position. They say it doesn't affect their business at a business commercial level then why would they appeal?," he said.

Mr Woodley said the Yindjibarndi did not have a dollar figure in mind for compensation but would look to the rates paid in other deals such as Lang Hancock's arrangement from the 1960s with Rio Tinto which provide for a 2.5 per cent royalty.

"I wouldn't have a clue," he told BusinessDay.

"This is fairly new to us as well. How long is a piece of string?"

Another reference point would be the royalties paid to the state government or royalties paid to other freehold title holders, he said.

​Mr Power told ABC Radio the predicted $100 million compensation claim touted in the media was "wildly inaccurate".

In a statement provided to Fairfax Media, Mr Power called for policy makers to consider the implications of the decision.

"We accept that the Yindjibarndi People hold native title rights in the claimed area. All of Fortescue's Solomon mining rights remain valid," he said.

"We expect that state and commonwealth governments will also carefully consider this judgment given its wide-ranging implications and the potential affect this may have on attracting new investment in resources, agriculture and tourism."

Fortescue shares fell 1.65 per cent on Thursday, and were down another 2.5 per cent to $5.06 on Friday following the court ruling, and a slump in the iron ore price overnight.

Spot ore with 62 per cent content delivered to Qingdao fell 3.1 per cent to $US68.05 on Thursday, according to Metal Bulletin Ltd. Prices have been volatile this year, hitting a peak in the $US90s in February before slumping in mid-June.

Fellow iron ore miners Rio Tinto and BHP were also down on Friday.

In his decision, Justice Steven Rares pointed to the presence of the Yindjibarndi in the area well before European settlement and the fact there were important cultural sites near the Fortescue mine.

"I have found that the Yindjibarndi are entitled to exclusive native title rights and interests over all of the unallocated Crown land in the claimed area and the Yandeeyara Reserve, except for a small area occupied by the Tom Price railway," he said.

The Solomon Hub, which includes two iron ore mines, is a key part of Fortescue's operations. The Solomon Hub produces about 70 million tonnes of iron ore a year. Overall, Fortescue produces about 165 million tonnes of iron ore a year.

Mr Woodley said he also objected to Fortescue's argument that it did not want to "replace government welfare and mining welfare"  which was an "ideological position".

"I don't think they should be in the business of telling us how to spend our money," he said.

with AAP

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