Aboriginal engagement: a key component of project commercial value

Abstract

Effective engagement with Aboriginal peoples for project access involves more than cultural understanding and settling the compensation quantum. The GLNG project involved the largest successful Aboriginal agreement-making project in Australian resources sector history. The success was based on a structured approach to Aboriginal engagement that managed project risk in relation to cost, delay and legal action as well as creating an opportunity for Aboriginal communities to create sustainable futures. Key components of the approach include: Enhanced internal governance; and, The recognition that project value can be created by effective risk management and non-adversarial negotiation pratices. This paper aims to show how a commercial orientation to Aboriginal engagement, rather than a corporate social responsibility approach, can create substantial project value and deliver significant sustainability outcomes for Aboriginal communities in the project area. The paper will use the GLNG project Aboriginal engagement and agreement-making process to illustrate how enduring value can be achieved for the company and the Aboriginal communities.